Minimum Wage is Going Up October 1st, Is Your Business Ready?
by Lisa Maslove
Did you know the minimum wage is going up to $11.60 on October 1st? You’d be forgiven for not knowing about this change; after all, most of the talk about minimum wage of late has been about the much larger increase on the horizon. The Ontario government is proposing that the general minimum wage be increased to $14/hr starting Jan 1. This would be a jump of over 20%, the largest in decades. To prepare for the increase in October 1, here are some things to consider:
- Have you looked at your budget to make sure the wage increase is reflected and that it all still balances?
- Be sure to update your payroll and/or bookkeeping software to reflect the $11.60 wage
- Does this increase require higher compensation for employees making above the minimum wage based on your current compensation structure?
Many businesses and business groups have suggested that they will cut jobs and/or increase prices to cover higher wage costs. While some business owners have talked about the upside of paying higher wages like lower turnover costs and increased productivity.
With the proposed minimum wage hike only 3 months away, many business owners will be spending the fall taking a hard look at their finances to find out how their costs will be affected by the higher minimum wage and contemplating what changes they will make as a result. Hopefully, they will also look for the opportunities this change offers starting with how to capture their share of the increased consumer spending that higher wages is likely to generate.
At Flow Office Wisdom, our purpose is to inspire and empower leaders by supporting their vision and mobilizing their plans. Through our work we've been lucky to meet many leaders who have chosen to pay their workers a higher than minimum wage, or even a living wage. They’ve seen the benefits to their bottom line. We'd love for you to meet them and ask them how they did it, so we are bringing them together in a panel to share their stories. Look for more information in the next few weeks.
In the meantime, do you need help crunching the numbers to see how your business will be impacted by the $14/hr minimum wage, or even the already legislated change to $11.60 on October 1st? Wondering how to update your compensation structure? Need some new marketing ideas to boost your revenues? We’re here to help!