Things to think about
Minimum wage is on the increase. It affects not only the minimum wage earners but to the entire organization. Proponents of the raise say that worker’s loyalty will increase and the quality of work should rise with the raise. Opponents bring up the fact that employment opportunities to the younger people will decrease and the cost of living will rise. We as employers would only want to raise wages for people who really are contributing and growing.
No matter what we think, minimum wage is rising. The important thing for us to do is to make sure we can use this change to the benefit of our business in comparison with the competition. With this in mind, here are somethings we can think of.
- Create an budget. Expenses will rise considerably. Businesses should plan so that they can survive the short window of time before the increase of costs can be fully reflected to price.
- Time to evaluate performance and decide on reasonable increase. Implement or improve the evaluation system so that the employees understand your expectations and will be more aligned to the goals of the business.
- Pay closer attention to market. Prices will eventually go up. It may be an opportunity to pay closer attention to what the competitors are doing.