This Episode: How To Successfully Navigate Minimum Wage Increases
The upcoming minimum wage increases are causing a lot of consternation on the part of many independent retailers. In our WhizBang! Retailers Facebook group, someone asked, “What are you going to do about it?” There were over 200 comments, which means it’s a topic that needs to be addressed. So, in this episode of Real Retail TV, we’re going to talk about how to think about the wage increases and even more importantly, what you can do about it.
As always, I’d love to hear what you have to think. Please, put your thoughts in the comments section down below.
As always, lots to think about. You always inspire me to do better! Thanks Bob!
Hi Bob
I enjoyed what you had to say, especially about looking at employees as an investment and not a cost. It is so true that you get what you pay for. If you are willing to train and pay your staff they feel appreciated and be happy to come to work each day. When there was a raise in minimum wage here in Ontario, I would hear “this is going to kill small business”. First I have to say, I have always worked for employers who have invested in their employees with training and paying more than minimum wage. Here are a few things I would like small business owners to consider about this wage increase, 1. you may have less turnover of staff which means lowering the costs of training new employees, 2. people who have their wages increase, now have more money to spend in their local economy, which means you can increase your customer base, go get them. Look at this situation as a positive thing.
I would say if you have to look at your staff and are considering letting them go, look at why they aren’t working out first, remember you hired them, did they not receive all the training they needed, do they need a little more mentoring, do that and give them the chance to work out, be honest with them what can happen if they don’t work out.
If I had a staff member failing I always assessed what I was doing as a manager as well, how can I do my job better.
Finally, I have never asked my staff do anything that I wasn’t willing to do myself, I gave them the opportunity to take on more responsibilities and grow, but most importantly I always tried to make sure that we had fun and enjoyed ourselves, because it made our customers happy to see we enjoyed what were doing.
You are absolutely right about challenges making you better or working smarter.
We also have never paid minimum wage in order to attract better staff.
The pool of available employees right now is very slim. This Christmas we had to hire a neighbor with zero retail experience but now we know what to do with someone like her. Basic gift bagging 101. Traffic control etc. For years we feared that. Best Christmas ever.
Thanks for all your encouragement, it means so much to those out here in the field. ❤️
Oregon has been stepping up the minimum wage for the last 4 years with 2 to go. They did recognize different areas of the state have different costs of living. So, while Portland is going to $15, in Eugene, it is going $13.50 and in Eastern Oregon it is only going to $12.00. That helped a LOT. If the Feds go up in one fell swoop, it will destroy a significant number of businesses who have sadly and foolishly clung to the Federal minimum. It will nearly double the Federal minimum. There will be zero effect in Seattle, they are already at $15. It will affect me only a little. But, it will affect many in the South and the Mid-West who have perhaps abused the low Federal minimum. I do know I have spent the last 4 years busting my butt to grow, become more efficient, mechanize where possible, only to break even. While my employees have benefitted, I have not. My business niche is very competitive with most people buying from China. I manufacture all our products here in the US. It just isn’t as simple as saying “I can do this”. The Feds have to realize they will need a step system, too. No employees deserve $15/hour, they should earn it. You are so right in hire slow and fire fast. It’s actually pretty easy to tell right away if an employee will work out. Most small businesses HATE firing people. It is mentally taxing. It weighs on your soul. BUT, these people are hurting you. Every time I have let someone go, I always found someone better! Wages are the easiest way to save money in a business. Not making a profit, fire 3 people and save $7500/month. THAT is what a $15/hour minimum wage, dumped on us in one increase, will do for wage earners. You will see unemployment go up and you will see far more stagnation of wages as the new minimum will also become the new maximum.
I agree. The issue is we still havedifficulty finding people that we really want to hire at any rate. Every business around has help wanted signs. We have been in business over 30 years and have tried your ideas but the pool is very limited.
Thanks Bob. I’ve been struggling with this so much. Another obstacle for us tho is that we are seasonal which means we hire a lot of high school students. I am going to use a lot of what you said but I would like to know your thoughts on this. Please. I’ve been losing sleep
Susan, I know you hire a lot of high school kids and I know what it’s like to run a seasonal business. Having said that, the answer is the same as I shared in the video. 1) losing sleep doesn’t help – being proactive does 2) make your staff more efficient 3) raise your prices.
You’re a smart person. Stop, take some time to figure out what needs to happen, then get to work.
Bob
Great episode!! Thanks so much, Bob!
Thanks Kiersten!