Nov. 04--With state and city minimum wage increases poised to kick in across the country, how do companies plan to adjust?
Nearly three-quarters say they don't plan to boost the pay of their minimum wage workers until they have to, according to a new survey by Lincolnshire-based consultancy Aon Hewitt, which polled 135 major U.S. organizations that employ workers making minimum wage.
The 28 percent that do plan to raise wages before increases kick in say they are doing so to have a competitive advantage in attracting workers and to increase retention, the survey found.
Nearly half of organizations said they will increase the pay only of those currently at minimum wage. A third said they would also adjust the pay of positions above to differentiate between levels.
Here is how they plan to offset their increased labor costs:
What employers are doing
Reducing overtime worked (36%)
Increasing prices of goods or services (30%)
Redefining work so that tasks done by entry-level workers are absorbed at other levels (23%)
Hiring more part-time employees (19%)
Using automation to replace work (14%)
Lowering head count (12%)
What employers are not doing
Shutting down or relocating operations (99%)
Decreasing paid time off (99%)
Decreasing 401(k) contributions/matches (99%)
Outsourcing activities/jobs (98%)
Decreasing bonus targets or funding (96%)
aelejalderuiz@tribpub.com
