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Friday, December 19, 2014

Minimun Wage Complainers should Just Stop!

If the minimum wage is increased by $1, the business owners have already started to complain how they will go out of business or lay people off. Going from $10 to $11 is let’s say 10%, that’s not a big jump. If we really want to help the poverty stricken employee then the boost to $16 and has a feel good about better social responsibility and becomes a game changer especially in a dual income family which adds a $1000 extra income per worker, or $2000 for a family. That is per month. A family making a combined income of $40k in Toronto these days is at the food bank a lot. How much is life better at $64k??

The government gets a share, and the employee spends more so the local sales tax coffer gets a boost, and maybe the children get a better breakfast and a tablet or laptop computer to study with. Maybe the extra money supports an internet connection or buying a used car and not having to rely on buses and subways. Let’s go to $16 and make a real difference.

The business owner gets a motivated employee that shows up on time and works harder. The business owner wont struggle finding staff if he pays better than the minimum and helps improve his business. The business owner sees revenue increases because his staff is happier AND MOTIVATED TO OFFER BETTER CUSTOMER SERVICE which is a positive improvement for a small business owner.

The boost is 60% so let’s say revenues increases by 30-40% then the other 20-30% can be found in efficiency and more focused cost savings. There are many areas that efficiency can be gained to offset the salary increases and by having a round table with staff will find areas that money can be saved. Maybe you have to raise prices a bit as well but people will pay extra for smiles and better service.

If consumers come to your business and the service is poor because of low employee morale then the consumer might as well go buy on line. The retailers doing the best right now is those that offer better customer service than everyone else.

I have compared the experience in getting a coffee and the one that pays more is a better experience and the same thing for a sandwich shop that believes in a better social index. The cost of the items may be slightly more expensive but you feel better knowing your purchases make a positive impact.

and do not forget your tip could be putting food in a kids mouth as a single divorced mom struggles to make ends meet and continue to instill hope and pride in her kids.

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