It could also drive up competition for good labor and increase turnover at other locations as more try to "move up" to a better paying location.
When I was in my late teens, I worked tech support at a given location... A new call center for another company opened up paying about 25% more. This had a lot of people switching jobs and pay overall for the area for that type of work went up. Other companies relaxed or offered other benefits (subsidized vending machines and food trucks, for example).
If 1% of the market for employees moves, that can have sweeping impacts overall. Take WinCo vs Walmart as another example. The shear impact of the appearance of a better workplace will often drive foot traffic, especially combined with competitive pricing. Brand image is a thing, and how a company treats it's labor is part of a brand's image.
When I was in my late teens, I worked tech support at a given location... A new call center for another company opened up paying about 25% more. This had a lot of people switching jobs and pay overall for the area for that type of work went up. Other companies relaxed or offered other benefits (subsidized vending machines and food trucks, for example).
If 1% of the market for employees moves, that can have sweeping impacts overall. Take WinCo vs Walmart as another example. The shear impact of the appearance of a better workplace will often drive foot traffic, especially combined with competitive pricing. Brand image is a thing, and how a company treats it's labor is part of a brand's image.