Businesses need to watch bottom line with minimum wage hike: HR Analyst
Posted Oct 1, 2016 10:51 am.
This article is more than 5 years old.
Those earning minimum wage in the province are getting another boost.
Workers can now make $12.20 an hour.
Debbie Carreau with Inspired HR says employers don’t need to automatically bump up everyone at the restraurant, only those currently making the minimum.
“The average restraurant today’s just taking a pay increase on October 1st it is going to take about one per cent off the bottom line. So, when you’re in an industry that is already working on razor thin margins understanding that one per cent alone is going to have a significant impact and if you can draw that back to saving people’s jobs.”
Carreau adds the best thing to do is base the increase on their performance and communicate with the team on what the best solution would be in order to keep employers happy and the business running.
The increase to $15.00 is slated for 2018.
Restaurant owners voice concern
Restaurant owners in Alberta are among those worried about how they will afford an increase in the minimum wage.
In an email release from Restaurants Canada, they state last year’s initial increase forced many small businesses to close their doors, and members now fear the worst closures and job losses are yet to come.
The organization, which includes 30-thousand food service businesses, held a forum in September to discuss concerns, with members saying they plan on reducing labour and balancing compensation between employees.
They add as costs increase, lots of their members are working longer hours, and Premier Notley’s plan to raise the minimum wage so fast is hurting the people they are trying to help.
