Many working at minimum wage deserve a bit more money, yes. I don't like to keep people down where it is reasonable to make a change. We just need to be mindful of how this all plays out for the economy overall. We can help some while hurting others in such disproportionate ways. A well thought out plan is necessary and that needs to be comprehensive. We need to recognize what happens to businesses as we seemlingly arbitrarily decide on a number to require as a minimum. We need to understand the "value" of certain skills and those that are training grounds for better opportunities. Minimum wage jobs are not meant to be lifelong jobs but if they are, than incremental increases for loyalty to a business is important. Win/win is all I say. Compensation is trickey. You can't increase lower level positions without considering what that does to those that require more skills. That gap needs to remain appropriately large enough to clearly show the value of different skills and the role one plays in the business/organization.
I am sure you are not thinking that this will only impact the food industry. It will impact all industries. Many of you are seeking similar levels of skills and so you have to keep up with what the market is driving. This increase was a "hidden" intentional way to force employers to raise everyone's pay. The President has indicated that you just need to pay more, it's that simple....well we in business know this couldn't be further from the truth. I have had clients consider selling their businesses as a result of the unemployment perks and this new minimum wage. They know all too well that it will be more and more challenging to afford employees and even find any interested in applying for work especially if they are paid so well not to work at all. Unfriend to business is an understatement. Unfair to individuals with a strong work ethic and take pride in actually going to work and contributing to others to earn a living. If you aren't concerned about this, think through it again. It is moving us in a direction of keeping people reliant on the government to live as they find it unnecessary to work. There certainly are legitimate reasons for people needing such benefits, but what my clients are hearing is that people simply can't make sense out of working if they get the same or better pay not working. Well that doesn't take a genious to understand this logic. But it truly is tragic to businesses trying to stay afloat.
Restaurants alone have signs to " please be patient". They struggle with executing their desires for quality, good food and a good experience. Forget about the service they desire to provide to us. That is almost non existent in some places and in others, slow service is the norm at best. While we are wanting to be patient, it isn't about that, it is a deep problem that will not end well for eager business people wanting to have a business that they can ensure will be able to be sustainable.
I am getting a good number of calls related to how to handle this so my clients are staying on track to keep up. But if you are not thinking about this, I suggest you do asap!
Hiring is hard enough, unemployment benefits and now this increased minimum wage will further impact this challenge.
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