The Payroll Blog

News, tips, and advice for small business owners

4 Ways to Adapt to a Minimum Wage Increase

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We have talked about this in the past, but with so much discussion regarding the potential increase of minimum wage, with President Obama pushing for an increase to $10.10, it is well worth visiting again.

The Fox Business Small Business Center has shared four ways small businesses can adapt t
o this possible change:

  • Increased efficiency among current employees, as opposed to hiring more workers, will be critical to long term survival.
  • Companies must focus on controllable expenses, saving money wherever possible.
  • Selective hiring will be more important than ever before. Will this lead to a decrease in seasonal and part-time hiring?
  • Reduce turnover. High retention rate can decrease costs associated with recruiting and hiring.

There are pros and cons of a minimum wage hike, and for the time being many small business owners are sitting back, waiting to see what happens next. By preparing now, business owners will be in better position to deal with this situation when/if it comes about.