In recent months, employers, business owners and staffing franchises have been closely following the development of the $15 minimum wage movement. With California and New York, along with the city of Seattle, passing legislation that will raise the minimum wage to $15 for some positions over the next few years, the effects on employers and staffing franchises will be felt in a number of different ways. As changes are made to how minimum wage will change the landscape of the staffing industry, the professionals from the AtWork Group can assist with answering questions on how minimum wage could affect your business.
Overall Wage Changes: The implementation of wage increases could increase the cost of goods and services proportionally across all markets. An additional challenge will also be in relative increased costs for employees beyond those that are currently making minimum wage. If employees are making the Federal Minimum wage of $7.25 an hour and move to the $15 an hour range, it would be expected that employees who are currently making $15 an hour would expect a proportionate increase if their lower paid counterparts are going to be increased to the $15 an hour.
Possible Loss of Jobs: The Congressional Budget Office released a report showing that while “raising the minimum wage would increase family income for many low-wage workers, some jobs would probably be eliminated and the income of those workers would fall substantially.” Others have opinioned that in areas of the United States where the cost of living is high, a $15 minimum wage will aid workers with more income while eliminating fewer jobs; however, in other areas where the cost of living is not as high, a rise to $15 will eliminate a much higher percentage of positions to offset the higher percentage of a raise.
Healthcare: While many healthcare organizations have struggled to fill vacant positions, staffing organizations that work with healthcare clients are feeling an exceedingly high burden in the field, especially when state budgets have not been raised to meet the higher payment costs. While healthcare job growth set new records in 2015, one of the fastest growing job sectors in healthcare is for nursing aides, which is one of the lowest paying fields within the industry and an area that could see a downturn in hiring with new minimum wage rules.
The possible changes to minimum wage laws means that having a staffing partner like AtWork Group can help you best determine the course of action required to find the right candidates for your most desired positions. Contact the AtWork Group today to learn how we can assist you and help you stay on top of the ever changing staffing landscape.