However, Most Believe Mandatory Hikes
Should Increase with Inflation
Latest Results from The Harris
Poll
OKLAHOMA
CITY, July 10, 2024 /PRNewswire/ -- As of
July 1, half of America's 50 states
have enacted a minimum wage increase, and hiring managers say if
their company is impacted, they may have to make big changes.
Hiring managers say if their company is
impacted by minimum wage increases, they may have to make big
changes.
This is according to a recent Express Employment
Professionals-Harris Poll survey.
More than a third of hiring managers (35%) report their company
would increase salaries/wages across the board (not just for
minimum wage workers) if/when there is a mandatory minimum wage
increase.
Around 3 in 10 would utilize/implement more
automation/artificial intelligence (31%) in response to mandatory
wage increases.
However, 1 in 5 report that they would need to take more drastic
measures — including reducing their workforce (19%),
outsourcing more work (17%) and/or decreasing the number of hours
employees work (17%).
Despite the challenges that may come with a minimum wage
increase, most hiring managers and job seekers (86% and 81%,
respectively) believe minimum wage should increase to keep up with
inflation rates. Fifty-one percent of hiring managers and 19% of
job seekers strongly agree with this statement.
The majority of job seekers also say minimum wage increases help
the personal finances of minimum wage workers in the long run
(76%), but 68% are concerned minimum wage workers will need to
worry more about job security.
And in a sign of potential internal strife, 58% of job seekers
would quit their jobs if they found out an entry-level employee and
senior-level employee had the same salary/wage at their companies
following a minimum wage increase.
Mandate Fallout
In Oregon, minimum wage increased July 1 to $15.95,
and Express franchise owner Sara Delafuente says it will
likely impact her clients and other businesses in Portland.
"Some may experience higher operating costs, which could lead to
price adjustments for their products or services," she said.
"However, there may also be positive outcomes, such as increased
employee satisfaction and productivity and a boost in consumer
spending power, which could benefit businesses in the long run.
"While the minimum wage increase presents challenges, it allows
businesses to innovate and improve. By focusing on efficiency,
employee development and strategic planning, companies can absorb
the impact of higher wages and thrive in a more equitable economic
environment."
Several thousand miles away in New
Hampshire where minimum wage did not increase this year,
employers are already paying the "market rate," according to local
Express franchise owner John
Roller.
"No one has come close to paying as low of a minimum wage since
I moved here in 1983," he said. "However, if New Hampshire was to increase minimum wage to
the mid-to-high teens, businesses and workers that rely on
entry-level jobs could be negatively affected."
For neighboring regions that fall under recent mandated wage
hikes, Roller says employers should look for cost savings in all
areas with the possibility of raising prices to offset the revenue
hit.
"It's also a great time for businesses to consider flexible
staffing solutions, such as temporary- or part-time workers, to
manage labor costs more effectively, handle peaks and valleys in
workflow and partner with a firm to find the best possible
candidates in this competitive recruiting environment," Delafuente
added.
Domino Effect
Roller opposes minimum wage increases
that reflect inflation, because of the havoc it can wreak on the
market.
"The employment market, like other markets, is best left to
itself," Roller said. "It self-corrects. If an employer pays too
little relative to the market, people leave for higher-paying jobs,
and the company will have to raise rates to be competitive.
"Reward workers based on work performance, excellence and
contributions to the company's success rather than a mandated
wage."
Conversely, Delafuente believes minimum wage should keep up with
inflation, with the caveat of a measured timeline.
"Adjusting the minimum wage for inflation helps maintain the
purchasing power of workers, ensuring they can afford basic
necessities despite rising costs," she said. "However, increases
must be balanced and gradual to allow businesses to adapt without
significant disruption."
Survey Methodology
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf
of Express Employment Professionals between
May 16 and June 3, 2024, among 1,003 U.S. hiring
decision-makers.
The Job Seeker Report was conducted online within the United States by The Harris Poll on behalf
of Express Employment Professionals from May
28 to June 10, 2024, among 1,002 adults ages 18 and
older.
For full survey methodologies, please contact
Sheena.Hollander@ExpressPros.com, Director of Corporate
Communications & PR.
If you would like to arrange for an interview to discuss this
topic, please contact Sheena.Hollander@ExpressPros.com, Director of
Corporate Communications & PR.
About Express Employment Professionals
At Express Employment Professionals, we're in the business of
people. From job seekers to client companies, Express helps people
thrive and businesses grow. Our international network of franchises
offers localized staffing solutions to the communities they serve
across the U.S., Canada,
South Africa, Australia and New
Zealand, employing 492,000 people globally in 2023 and more
than 11 million since its inception. For more information, visit
ExpressPros.com.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/minimum-wage-hike-woes-1-in-5-companies-would-consider-layoffs-outsourcing-and-hour-reductions-302192360.html
SOURCE Express Services dba Express Employment Professionals