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How did you come up with the criteria?
We
began by looking at what others had done. We quickly realized that
there were as many ways to come up with target wages and benefits
as there were stars in the sky. For every method, there were supporters
and critics. In the end, we decided to develop criteria based on
what made sense to us, using data from websites that appeared to
use a logical approach, obtained their data from reputable sources,
and clearly articulated their algorithms. These websites were maintained
by the Economic Policy Institute
and the National Center for Children
in Poverty.
The
criteria we developed are a work in progress. We know we will make
mistakes. We are committed to fixing mistakes we become aware of.
But we also believe that it is important to get started. Any criteria
we come up with, however imperfect, are better than the current
state of affairs. Our goal is to begin spending our own money in
line with our values, not to develop the perfect criteria.
Our
first task was to identify criteria for wages. We began by identifying
two levels. The first level was based on the notion of a “living
wage”—one that would allow an individual or family to
have the bare necessities of life. The second level we called a
“sustainable” wage—one that permits a family to
have not only the basic needs of life, but also to own their own
home and to achieve their educational and retirement goals. In addition,
we identified a beginning list of benefits that we believe are needed
by all employees. Recognizing that both wages and benefits contribute
to the total compensation provided to an employee, we developed
a system that would recognize the contribution of both wages and
benefits to the employee’s physical, economic, psychological
and social well-being.
We
soon discovered several fundamental challenges to overcome. First,
calculation of precise “living wages” required very
complex calculations that were beyond
our expertise. Second, it was difficult to locate figures for single
earners and couples without children. Most estimates of “living”
and “sustainable” wages are based on families with children.
Yet our community has many households without children. This led
to our third dilemma—how to derive a single recommended hourly
rate given the variation in the number of working adults in a household.
A final challenge was the realization that many employers, especially
in certain industries, currently offer wages that would be far from
most estimates of a “sustainable” wage.
After
months of grappling with these challenges, we developed what we
hope is a simple point system that will honor employers who are
making a good-faith effort to provide the wages and benefits that
would allow an “average” employee (see “How
are points assigned?”) to move toward the “American
Dream.” As outlined below, we define the ultimate “American
Dream” as being able to own the median-price home in Athens-Clarke
County and having affordable health care, a reasonable amount of
paid leave time, and retirement savings. Businesses receive points
for both the wages and benefits they offer employees.
Our
system is based on a maximum of 100 points. Businesses must receive
at least 50 points to be listed on our website, with at least 30
of these points coming from the wage criteria. Using a sliding scale
allows employers to see how they compare to other similar employers
and allows businesses and organizations to show progress over time.
Employers
who meet the minimum criteria through the wages and benefits they
offer are designated “Worker Friendly Employers.” The
actual points they receive are listed on this website.
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