Increases To The Minimum Wage: It affects everyone - here's how to prepare now:
You may be under the impression that if you are not currently paying minimum wage for any of the roles in your organization, that the upcoming increases in minimum wage don’t affect you. However, any employee working within a few levels above minimum wage could also be concerned about how their wage may be impacted if the most entry-level wage will now be within a hair’s breadth of their own. It’s therefore important to be prepared for those conversations when they come up.
There are regular increases to minimum wage across Canada. Find out what’s coming up for your province here.
Employment rates across Canada are back to pre-pandemic levels, and in some areas, are even better. More people than ever are entering the employment market. Anyone who can and wants to work, is working.
See how industries in your province are affected in this link and browse to your own province. Bookmark that blog to easily find up-to-date info.
What this tight employment market means for companies looking to fill positions is that often you’re competing with many other businesses for your preferred employee. Increases in minimum wage may encourage a few more people into the workforce, but it’s hard to see how that will have a major impact given the near- full employment levels we’re experiencing.
While many of our markets are experiencing record-high cost of living rates, increased minimum wage levels can often have mixed results:
- causing an increase in consumer-spending beyond “the bare basics” which helps bolster the economy (which in turn can help minimize higher inflation),
while simultaneously
- causing the cost of consumer goods to increase.
However it plays out in our markets, our provincial governments have enacted these increases, and so it’s up to businesses and their staffing partners to manage the outcomes and try to minimize any negative impacts.
How can businesses prepare their budgets, hiring managers, and existing staff for the affects of the increased minimum wage levels?
- REVISE your budget plans to accommodate upcoming* minimum wage increases.
- REVIEW which job descriptions will be affected by this year’s increases – both minimum wage jobs and those close to minimum wage.
- PARTNER with a staffing company like ABL who understands the challenges in retaining your employees who will no longer be making much more than minimum wage after the increase takes effect.
- PROACTIVELY EDUCATE your current employees and customers on how this minimum wage increase will affect them.
- REASSESS the impact that unemployment rates in your province or region have on recruiting & retention plans with your staffing partner at regular intervals, particularly in light of this year’s minimum wage increases. The unemployment rate directly impacts your company’s ability to attract and retain available and qualified workers.
Use the form below to contact us if you have questions about how ABL is helping its client companies manage the changes and challenges the increase in minimum wage presents.
