Paying Minimum Wage- Why It’s So Last Year!
Updated: Sep 12
It’s no secret that businesses are created to generate a profit. And the biggest hit too many company’s bottom-line is the cost of labor.
So you wanna increase profits? Just cut, slash and burn salaries, right? You’ll immediately trim expense and drive up profits.
Sound like a strong strategy? If it does just think about how you would feel if you cut your own salary, it doesn’t make you feel motivated to rally for the cause, right? Simply slashing salary will put you at a huge disadvantage, here’s why:
Paying Minimum Wage, does it really attract the type of employees you want to build your company?
It stands to reason that lower wages attract a lower level of the worker. By offering higher, more competitive salaries, companies can entice more experienced employees who are better able to perform the tasks at hand. While these workers may increase your payroll initially, they should be able to work more efficiently. Additionally, offering higher wages helps reduce turnover rates among existing staff. Because of the high cost associated with hiring and training new workers, lowering turnover rates can increase your profits in the long term.
Lower Salaries Contribute to Poor Customer Experience.
Employees who feel underpaid or undervalued are likely to express that dissatisfaction in their work, a fact that can result in a negative experience for your clientele. In all businesses, regardless of if the employees are face to face with the end-user, underpaid or undervalued employees affect your business. Ever received the wrong product you ordered online? I have. I sent it back, received the wrong thing a second time, and NEVER ordered from that company again. Not only are unhappy customers less likely to frequent your business again, but they may also leave disparaging reviews on consumer websites.
If you pay them, they will come…..and stay
I believe people give what they get. So, give your employees a fair wage, a great environment to work in, show appreciation and you will get in return a dedicated team who sings your praises to the world……and maybe someday throws you a parade. Well, we can only wish on that one!! I’ll be looking in the local papers to see if that happens, I am so there!!!