The Minimum Wage

This week’s blog is on a considerable hot topic of the moment. From McDonald’s workers in Florida protesting it to a campaign in British Columbia wishing to raise it, everyone is talking about it.

The minimum wage.

The general minimum wage in Ontario is currently set at $11/hour. There are those fighting for its increase and small businesses saying they won’t be able to survive if it gets any hirer. But regardless of what side you’re on, you have to agree this is a touchy subject.

Now in the past I have professed not paying the minimum wage. Paying your employees the minimum wage encourages them to give you the minimum effort of work. It shows you only value you them based on the least amount of money you are legally obligated to pay. And when you are looking to hire new skilled workers your company could be passed over for only offering the minimum wage.

But what about paying well above the minimum wage? Like, WAY above…

Seems like a crazy idea but one CEO from Seattle is using his company as test project for this very idea.

 

“~ A Seattle company is going to pay its employees at least $70,000 a year.

Dan Price (picture above), the CEO of Gravity Payments, made the announcement on Monday that he will help finance the new minimum wage by cutting his own remuneration from $1 million a year, down to the $70,000 mark.”

Now obviously your company may not be able to afford to pay everyone $70,000 a year. However the idea still is interesting.

Paying your employees at a similar rate as yourself shows how much you care about them and their families. It also relieves a lot of stress from people’s lives. When they don’t have to worry over finances they won’t bring that worry to work with them. One could extrapolate that less externally stressed workers will lead to higher work productivity. And increased productivity will lead to higher profits.

There is no guarantee this will work for your company. There isn’t even any guarantee this idea will work for the company in the article. But consider breaking this down to its core idea. Paying more for your employees will attract the best workers and motivate them to continue to supply you with their best work possible. When you are paying well above minimum wage you are able to expect more in the quality of the work provided. You also will be able to decrease employee turnover and increase stability in your team.

Regardless of where you stand it is some interesting food for thought on this Friday.

 

“ [The company believes] the benefits of increasing compensation outweighs the costs, but every business is different.

“It’s definitely a risk and it’s one you just have to take a leap on when you are ready.””