First issue, of course: WHEN will your business implement any changes? Well in advance of the laws? Or, coincident with the laws?
Why does the timing matter? Because of the perception. Are you out in front of this issue? Or, seeming to lag behind?
Next big issue: IF the minimum wage (the "floor") of the pay scale in your business needs to be raised to comply with the laws, what effect will this have on the wages of your mid-management team?
- Your current mid-management people may expect a separation between the minimum wages paid and their paychecks.
- If the minimum wage increases cause you to increase the wages of your entry-level employees, might you also need to increase the pay of essentially ALL of your employees.
- The bigger ripple effect may be how other employers in your community handle these first two issues. That is, are you remaining competitive for attracting and retaining the best people?
There are no right or wrong answers here. Every retailer must evaluate this, and determine what is appropriate for their business.
And, of course, that analysis must include how you will be able to pay for any changes in payroll.
- Increase prices for your customers?
- Reduce expenses in other-than-payroll areas?
- Expect more productivity from employees?
- Introduce other forms of compensation, such as more flexible scheduling, more paid time off, etc?
Again, there is no one-size-fits-all answer. But, we sure encourage all retailers to ponder this issue, and to examine all of your options.
Get Out in Front of This Issue!As we all know, good people are very hard to find. How you choose to compensate - and therefore motivate and retain - your key staff is a key factor in the on-going viability of your business. We urge you to get out in front of this issue!
Want more ideas? Check out this thoughtful article from The Library for Owners at The Retail Owners Institute®: Beyond the Paycheck: Motivate Employees with Creative Compensation.