What L.A. can expect with its new minimum wage hike
With the city of Los Angeles raising its minimum wage, many are worried how this may impact a business' bottom line. Los Angeles isn't the first city to raise the minimum wage. We've already seen cities like San Francisco, Chicago, and Seattle approve increases and dozens more are considering doing the same.
With wages increasing, companies are going to have to come up with creative ways to retain attrition and manage hiring. Many companies will have to take an internal look at their recruiting tactics as they are feeling pressure to increase their internal wages for entry level positions.
According to Paul Harty, President of Seven Step RPO, at the very least, there will be adjustments in how some companies operate simply by virtue of the large increase in pay. One company that may have prided itself on paying $10 an hour to another’s $9 may not be able to keep up that selling point with workers as wages make the leap to $15 an hour.
“All you’re really doing is resetting the playing field, and everyone is equal again,” he said. “Instead of trying to better another company in wages, firms may have to emphasize other benefits as they try to attract workers”, Harty adds.
He continued to say that “the pressure will be turned up on companies looking for talent as census figures show that the 18-64 age group--the entire adult workfoforce--is beginning to drop. There is a major race for these corporations to hire talent now.”
To see Paul Harty's full insights and commentary in the original article written by Russ Britt on MarketWatch here: "What L.A. can expect with its new minimum wage hike"