Recently I've discussed the December 2006 Harvard Business Review article The High Cost of Low Wages with several small business owners. The article's well supported thesis is "stingy pay and benefits don’t necessarily translate into lower costs in the long run".

Certainly when looking at a counter-intuitive suggestion like this it is comfortable to be dismissive out of hand. What is harder to put aside is that in case study after case study this model holds true. Many business owners, however, are convinced it doesn't apply to their industry. There is certainly support for the idea that pay and benefits are not the only thing that matters in many industries.

While employee pay is not a direct indicator of success, the Costco model certainly suggests it is a part of the puzzle. Further employee compensation plans say a great deal about management's attitudes towards employees. If I as a manager expect an employee will be stealing from me, a short timer and not worth investing in guess what I'll get?

The anticipation's been building. You've been through the first and second round interviews and the phone rings. As the first day of the new job starts you are excited and ready to go to work.

As much as employees need to take advantage of this situation employers have a lot to gain or lose as well. Several places I've started it's been clear that they just plain weren't ready for me. If the job involves more than flipping hamburgers it's worth spending some time planning out the first days and weeks of a new hire's work with some care.

1. Make the tools available - Nothing is more unsettling than going in to a new company and not having the basics. At the minimum a phone, email and office or cubicle need to be ready to go on day one. Make sure the employee has keys or whatever things are necessary to get in so they can come in early or stay late (which they will often want to do).