The potential increase of minimum wage and the aftereffects it brings has companies of all sizes in its grasp. Regardless of size, companies will find it necessary to minimize their front-facing workforce, often running understaffed to be able to compensate for the rising cost of keeping employees on the clock. And with entry-level employees making comparable paychecks to those who have invested much of their time and effort into the company, retaining and motivating high performers will become a challenge.
With the increase in the cost of the workforce, companies will have to be more discerning when hiring new employees and will have to focus on retaining top performers in lieu of hiring to compensate for poor performance. Mitigating this unnecessary expense can put you in a position to focus on more prominent issues. That starts with a reliable hiring process—one that consists of the following factors: the level of attraction that talented individuals have towards your organization, quality of the interview, and—arguably the most important—assessments.
In our whitepaper Preparing for the Minimum Wage Increase, you will see the necessity and effectiveness of quality hiring, especially with the changes brought on by a minimum wage increase. It can be downloaded here.
If your business isn’t yet prepared for the potential minimum wage increase, there is no better time to start than now. By calculating your future costs and knowing how this change will affect your particular business, you can better manage the necessary adjustments required to continue operations in the new economic atmosphere.
Asking questions such as: How will this affect current business operations, Will my current employees be more motivated to stay, and What effects will this increase have on the process of hiring in the future, will help you prepare and take action to ensure the smoothest transition manageable. And when a business is prepared, a business is free to progress.