The current minimum wage will likely go up in the coming years in many cities, and LA is on board as well. This has a number of business owners frustrated and concerned: How can they stay afloat when wages increase…will they have to increase prices? Will that lead to backlash and a shutdown of the business? As a matter of fact, although it may seem contradictory, paying your employees more can actually boost your business.
Solid investments pay off. Companies such as Costco and Trader Joe’s pay their employees well above minimum wage…and they’re still turning quite a tidy profit. Much of this has to do with employees who feel their employer recognizes the need for a living wage and who choose to stay at the company. That loyalty pays off by having dedicated employees who in turn care about doing their best work and less turnover, which means less disruption overall. When you invest in your employees, they can focus on their jobs and not worrying about stretching each paycheck to pay for food and bills. All of this leads to more profit.
It makes you look good. Let’s face it; whether you’re a small local business or a huge conglomerate, how you treat your employees reflects how others view you. And increasing employee salaries, particularly when you’re a smaller, community-based company, is good for business. Word-of-mouth can have a powerful effect – the company that pays its workers well will garner goodwill, and more people will want to do business with them. Treat your employees well and it will come back to you in increased commerce.
You’ll get better employees. If you want to attract the best workers and stay competitive, part of that includes giving them something they want. Spreading salaries thin to save a few pennies will lose you money in the long run because it won’t attract the kind of talent you want – and that means a lesser quality of employee and, down the road, a lesser quality of product and output. If you want a low-wage mentality, that’s what you’ll get. If you want employees who will take your company to the next stage, you need to offer a worthwhile incentive.
It’s good business. If you want quality employees who help your business grow, it makes sense to pay them well. From this you get your loyal employees, a better product, and better overall business. This in turn helps the economy in your community – employees spend more because they don’t have to worry as much about pinching their own pennies, and that helps other businesses grow. It will come back to you in the same way, a cycle that perpetuates itself through content employees who help businesses prosper by spending.
It may sound daunting, but raising your overall salaries, when carefully done, really can increase your business. For help finding the right employees to get started, reach out to the experienced staffing professionals at PrideStaff Thousand Oaks,