{"id":28533,"date":"2015-08-08T19:52:42","date_gmt":"2015-08-08T23:52:42","guid":{"rendered":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2015\/08\/business-report-minimum-wage-law-has-two-sides.html"},"modified":"2015-08-08T19:52:42","modified_gmt":"2015-08-08T23:52:42","slug":"business-report-minimum-wage-law-has-two-sides","status":"publish","type":"post","link":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2015\/08\/business-report-minimum-wage-law-has-two-sides\/","title":{"rendered":"Business Report: Minimum Wage Law Has Two Sides"},"content":{"rendered":"
\n
\"rose\n<\/div>\n
Rose Miller is the president of Pinnacle Human Resources LLC\n<\/div>\n<\/div>\n

BY ROSE MILLER<\/p>\n

There is a great deal of discussion, posts,
\nblogs and news reports regarding the proposed
\nwage increases throughout the country.<\/p>\n

The news waves have been blowing up with
\nopinions. There are many arguments on both
\nsides and no one can have an opinion without
\noffending someone.<\/p>\n

HR professionals are in a unique position
\nwithin this discussion because they represent
\nmanagement while advocating for employees,
\nas needed. As a business owner, I understand
\nthe business owner’s struggle. We are a small
\ncompany and the margins achieved pay the
\nbills. As with most small businesses, labor costs
\nare the largest chunk of the expenses. When
\nthis particular cost goes up, the entire cost of
\ndoing business changes. Everything needs to
\nbe examined and changes must be made to
\naccommodate the new reality.<\/p>\n

As HR professionals, we also can’t ignore
\nwhat it takes to make a living wage today.
\nMajority of business owners think $15 per hour
\nis an unreasonable minimum wage. However,
\nmy working class parents taught me a great
\nlittle formula to go by when I left home. The
\nformula was to make sure my monthly living
\ncosts did not exceed one week’s pay.<\/p>\n

Using this formula, an individual working
\nfull time at $15 per hour would have $600 per
\nweek and their cost of living (apartment, heat,
\nelectricity, internet) would be $600 per month
\nor less. Well today, good luck with that.
\nSo while both sides can make compelling
\narguments, I believe this disruption raises
\nmany operational and human resources issues.<\/p>\n

There are many strategies to review before
\nsimply raising the cost of goods or services.
\nCompanies should examine work flows and
\ndetermine realistic expectations of how work
\ncan get done.<\/p>\n

Perhaps it’s time to invest in newer, more
\nstreamlined systems. Are there redundancies
\nthat can be eliminated? A recent conversation
\nwith a business owner, Tim said, “Yeah. We
\ndid that a while back.” But we ask, “Have you
\ndone it today?” Data is not static. A new reality
\nmeans you probably have different metrics
\nand needs today.<\/p>\n

This disruption requires us to count the
\ncost of each head, so we need to make sure
\nevery head counts. As the cost of the workforce
\nincreases, there is also a call to managing
\npeople better.<\/p>\n

I read an article where someone witnessed
\na low wage earner giving terrible customer service.
\nThe argument was: Why pay people like
\nthis more when they obviously don’t deserve
\nit? The new wage should never be seen as an entitlement. Rather, make employees earn it.<\/p>\n

We have a retail client, who has always paid
\nhis employees $15 per hour. Hiring is carefully
\ndone and the staff is trained to give above
\naverage customer service. Staff turnover is
\nlow and customers comment on their pleasant
\nshopping experience.<\/p>\n

If employers are paying more, their expectations
\nshould similarly increase. Are managers
\ntaught how to get the most productivity out of
\nthemselves and their staff? Does management
\nhave good ways to measure performance and
\noutcomes?<\/p>\n

Wage increases are hard to swallow. It all
\ncomes down to personal philosophy on the
\nvalue of people and corporate governance.
\nThere are value statements from either side.
\nEmployees need to make wages they can live
\non.<\/p>\n

Employers need to expect workers to earn
\ntheir wages and have the work done well. HR
\nfirms bring value with tools and methods that
\ncan assist. We can only try to be a step or two
\nahead of the next disruption.<\/p>\n

Miller is president of Pinnacle Human
\nResources LLC.<\/em><\/p>\n

Photo Courtesy Pinnacle Human Resources LLC<\/p>\n","protected":false},"excerpt":{"rendered":"

Rose Miller is the president of Pinnacle Human Resources LLC BY ROSE MILLER There is a great deal of discussion, posts, blogs and news reports regarding the proposed wage increases throughout the country. 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