ABOUT 75% of U.S. organizations agree that the federal minimum wage should be increased, according to a new report from Payscale. Although opponents insist that an increase would hurt small businesses, the report indicates that small organizations with fewer than 100 employees tend to be more in favor of the policy than larger counterparts.
TO offset the complaint that wage increases have a negative impact on hours, prices and the overall economy, it was pointed out that businesses that have raised their wage floor above minimum wage have offset the costs with a reduction in turnover and increased engagement and morale. They say that all of those have led to a better business.
THERE is a push towards a $15 minimum wage which has been driven by fast food workers. Around 27 million workers would be affected by this sea change of the minimum wage. Supporters argue that it will reduce poverty, address income inequality, decrease gender and racial pay gaps, ensure fair compensation and stimulate the economy by increasing incomes and spending power.
MAJOR employers have been increasing their wages on their own. Walmart increased its minimum wage to $14 recently. They have also announced other programs for their employees including college degrees, health insurance and training opportunities.
WHILE we find the study interesting, we also understand some of the nuances that would affect small independent retailers. While some of the big box stores can do the volume to make up for the increased pay scale, small stores have a real problem keeping up with mark-downs and being competitive. We also feel that the argument of increasing wages to stimulate the economy is not a great one because with increased wages come increased prices at retailers and fast food. Remember, the dollar stores are now $1.25. So, if you got a 25 cent raise at work you’re spending more when you shop. All things considered, the minimum wage was designed as an entry level pay for entering the work force – not as a career salary or one that was designed to support a family and adult lifestyle.