B.C.’s lowest-paid workers will see a 2.6% wage increase on June 1, 2025, keeping pace with inflation. Companies may worry that these conditions will result in a ripple effect on pay rates for other entry-level to mid-level positions within their company. However, in other jurisdictions where a similar leap in the minimum wage occurred, it was more likely for wage compression to occur in mid-level positions, rather than a knock-on effect across all levels.
Some companies are wondering how these increases will affect their ability to stay competitive in the local and global market economies, while also attracting the people they need to fill positions such as forklift operators, general labourers, and construction workers, with 35000+ new jobs being added to the BC economy so far this year.
Our previous blog can help you identify intangible benefits that will help balance out wage-compression issues for employees who may rankle at working alongside new employees making close to or the same as more seasoned employees in the low to midrange pay areas.
Practical Steps To Prepare For Minimum Wage Increases:
Regardless of these issues, there are some practical steps you can consider to help prepare your organization for the minimum wage increases to come:
- REVISE your budget plans to reflect upcoming annual wage increases.
- REVIEW which job descriptions will be affected by the 2019, 2020, and 2021 increases – both minimum wage jobs and those close to minimum wage.
- PARTNER with a staffing company who understands the challenges in retaining your employees who will no longer be making more than minimum wage as of June 1st, 2019.
- PROACTIVELY EDUCATE your current employees and customers on how this minimum wage increase will affect them. Uncertainty negatively impacts morale—but you can control the narrative.
- REASSESS the impact that unemployment rates in the lower mainland region have on recruiting and retention plans with your staffing partner at regular intervals, particularly in light of the current minimum wage increase. Lower unemployment rates directly impact your company’s ability to attract and retain available and qualified workers.
- Contact us if you have questions about how ABL Employment is helping its client companies manage the changes and challenges the increase in minimum wage presents to British Columbia businesses.
Read about all BC regions and their employment rates in the full article from WorkBC.
ABL is a staffing agency specializing in filling general labour temporary jobs, including packaging jobs and warehouse jobs. Contact us today to find the right staff for your needs!
