It looks like the New Year is off to a hot start. According to the employment website CareerBuilder, 2015 is projected to see unprecedented job growth, with more than one third of employers planning to add full time permanent employees to their payroll.
This meteoric growth will undoubtedly be accompanied by an increase in minimum wage. In fact, CareerBuilder projects that 45% of employers are expected to raise the minimum wage in 2015. The specific amount of the increase is expected to vary, with about 47% of employers considering an increase of $1 per hour while others going as high as $2 or $3 per hour.
This presents an interesting opportunity for employers to weigh in on the pros and cons of increasing the minimum wage. There are significant factors to take into consideration:
Of course, one important factor to consider is how much increase of an employer’s minimum wage will affect operating cost. Knowing solid growth projections and overall payroll cost is paramount. It is also important to take into account whether raising minimum wage will affect other aspects of business operations. Another issue to consider is what raising the minimum wage will actually do, if anything, to alter overall economic health. There are vocal contenders on both sides of the argument. Raising the minimum wage may achieve individual desired results.
No doubt this is a hot topic and opinions are strong. Ultimately, salary isn’t everything. While it may hold a strong appeal to some employees, others may have more practical or even inspirational reasons to seek out a specific job, (does the job allow flexible hours, is telecommuting an option, does the company have a strong mission?) These are but a few of the reasons people accept or decline a job.
While the bottom line for an employer is, of course, how to recruit and retain top talent, there are many paths for reaching this desired outcome. Each company will ultimately have to decide which approach is most suitable to their needs. One thing is for sure, you can expect a lot more dialogue on the subject and, unquestionably, more than a few heated moments.