{"id":17580,"date":"2015-08-15T17:19:17","date_gmt":"2015-08-15T21:19:17","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/08\/minimum-wage-law-has-two-sides.html"},"modified":"2015-08-15T17:19:17","modified_gmt":"2015-08-15T21:19:17","slug":"minimum-wage-law-has-two-sides","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2015\/08\/minimum-wage-law-has-two-sides\/","title":{"rendered":"Business Report: Minimum Wage Law Has Two Sides"},"content":{"rendered":"
\n
\n\"rose\n<\/div>\n
Rose Miller is the president of Pinnacle Human Resources LLC\n<\/div>\n<\/div>\n

BY ROSE MILLER<\/p>\n

There is a great deal of discussion,
\nposts, blogs and news reports regarding the
\nproposed wage increases throughout the
\ncountry. The news waves have been blowing
\nup with opinions. There are many arguments
\non both sides and no one can have an opinion
\nwithout offending someone.<\/p>\n

HR professionals are in a unique position
\nwithin this discussion because they
\nrepresent management while advocating for
\nemployees, as needed. As a business owner,
\nI understand the business owner’s struggle.<\/p>\n

We are a small company and the margins
\nachieved pay the bills. As with most small
\nbusinesses, labor costs are the largest chunk
\nof the expenses. When this particular cost
\ngoes up, the entire cost of doing business
\nchanges. Everything needs to be examined
\nand changes must be made to accommodate
\nthe new reality.
\nAs HR professionals, we also can’t ignore
\nwhat it takes to make a living wage today. Majority
\nof business owners think $15 per hour
\nis an unreasonable minimum wage. However,
\nmy working class parents taught me a great
\nlittle formula to go by when I left home. The
\nformula was to make sure my monthly living
\ncosts did not exceed one week’s pay.<\/p>\n

Using this formula, an individual working
\nfull time at $15 per hour would have $600 per
\nweek and their cost of living (apartment,
\nheat, electricity, internet) would be $600
\nper month or less. Well today, good luck
\nwith that.<\/p>\n

So while both sides can make compelling arguments, I believe this disruption raises
\nmany operational and human resources
\nissues. There are many strategies to review
\nbefore simply raising the cost of goods or
\nservices. Companies should examine work
\nflows and determine realistic expectations
\nof how work can get done.<\/p>\n

Perhaps it’s time to invest in newer, more
\nstreamlined systems. Are there redundancies
\nthat can be eliminated? A recent conversation
\nwith a business owner, Tim said, “Yeah.
\nWe did that a while back.” But we ask, “Have
\nyou done it today?” Data is not static. A new
\nreality means you probably have different
\nmetrics and needs today.<\/p>\n

This disruption requires us to count
\nthe cost of each head, so we need to make
\nsure every head counts. As the cost of the
\nworkforce increases, there is also a call to
\nmanaging people better.<\/p>\n

I read an article where someone witnessed
\na low wage earner giving terrible customer
\nservice. The argument was: Why pay people
\nlike this more when they obviously don’t
\ndeserve it? The new wage should never be
\nseen as an entitlement. Rather, make employees earn it.<\/p>\n

We have a retail client, who has always
\npaid his employees $15 per hour. Hiring is
\ncarefully done and the staff is trained to
\ngive above average customer service. Staff
\nturnover is low and customers comment on
\ntheir pleasant shopping experience.<\/p>\n

If employers are paying more, their expectations
\nshould similarly increase. Are
\nmanagers taught how to get the most productivity
\nout of themselves and their staff? Does
\nmanagement have good ways to measure
\nperformance and outcomes?<\/p>\n

Wage increases are hard to swallow. It all
\ncomes down to personal philosophy on the
\nvalue of people and corporate governance.
\nThere are value statements from either
\nside. Employees need to make wages they
\ncan live on.<\/p>\n

Employers need to expect workers to earn
\ntheir wages and have the work done well. HR
\nfirms bring value with tools and methods that
\ncan assist. We can only try to be a step or two
\nahead of the next disruption.<\/p>\n

Miller is president of Pinnacle Human
\nResources LLC<\/em>.<\/p>\n

Photo Courtesy Pinnacle Human Resources LLC<\/p>\n","protected":false},"excerpt":{"rendered":"

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