What to expect with wages in America…
By Fran Halloran
There is much talk about wages and the fact that they are not rising as fast as our country would like. Let me suggest, that wages are not going to increase anytime soon for one reason and one reason only:
As a small business owner and a radio host, I look for trends in my life and the lives of others. I see business owners in this community who are fearful and uncertain of what is ahead. The recent economic boost we have seen since November of 2016, is one election away from being stopped in its tracks. If a business owner increases a person’s wage right now thanks to this economic boom, and then business dries up because a new regime comes to power, said business owner is on the hook for the higher wage. Yes, the business owner could go back on his/her word and reduce the wage, but that would destroy employee morale and feel like a betrayal to the employee. So business owners are not going to increase wages unless they see a future where continued economic success is a reality they can bet on…and that is NOT where we are right now. This economic uptick is simply too new and our country’s economic future is still uncertain.
The business owners who recognize the need to provide a better wage are getting more creative by offering decent wages, and then offering bonuses and enhanced commissions based on employee performance. This way, if the economy continues to be good, employers and employers both win. If times get tough, then the employer is not on the hook for the additional wage. Some employers are even offering more time off as an incentive for increased production as millennials, in particular, appear to be much more interested in time off and quality of life, than more money.
If you are a business owner and you are struggling with how to properly compensate your people, consider enhanced commissions and bonuses for reaching certain milestones. Talk to your employees honestly about your fears and concerns regarding the newness of this economic boom. If you’re an employee, and you want more money, think out of the box and ask your employer to consider commission and bonus enhancements and additional time off if you reach certain goals.
And when you begin to argue for or against a particular political point of view, ask yourself one question:
How will this point of view directly affect me from an economic perspective?
Fran Halloran “The Money Coach” appears weekly on The POINT Thursday morning from 9am-10am. Contact Fran at [email protected]