I am familiar with this story (from about a year ago) of an employer raising the pay of all his employees to $70,000 a year as an experiment. How would the increase affect employee retention? Years ago, I owned a women??s clothing store in Central California. The business was doing fairly well and I was able to hire a few employees, I never questioned paying a bit more that I could really afford...I can talk the talk all I want and tell my employees how much I value their work, trying to build a reciprocal appreciative environment but I always believe ???your money is where your mouth is.?? Offering an incentive with their wage extends a sensitivity. As a business woman, I also am very aware this helps with employee morale which feeds into employee retention and company reputation. http://on.today.com/2blHmOu