5 STEPS TO PREPARING YOUR BUSINESS FOR FLORIDA’S UPCOMING $10 MINIMUM WAGE INCREASE
As of election day, Florida became the eighth state in the country to raise its minimum wage to $15 per hour over the course of several years. Amendment 2 provides for the state’s minimum wage to increase from $8.56 to $10.00 per hour effective September 30, 2021 (progressively increasing each year by $1.00 up to $15.00 per hour), giving business nearly 11 months to adjust to the first major hike. Here are 5 things you can do to prepare your business.
1. Figure Out How Much It’s Actually Going to Cost You. When looking at an increase from $8.46 to $8.56 to then a $10.00 jump, it’s easy to get anxious. Don’t. First, do your homework and gain an understanding of what it actually means for your business. Calculate your revenues, profits and outgoing expenses. Once you understand your cash flow situation, you can start thinking about what to do next.
2. Assess Current Productivity – Because productivity is so important, this is the perfect time to take a deeper dive into the way work is currently getting done so that you can determine any opportunities for better efficiencies. The more streamlined your operations the more you’re able to contribute to the bottom line.
3. Refresh Job Requirements. Since your employees will be making more, it’s only fair that you expect more from them. Take the time to review how work is currently being performed on a day-to-day basis; identify any ineffectiveness; and then set the expectations of how you expect it to be done. By doing so you are providing your employees with the tools they need to be as effective as possible.
4. Hire the Best Employees. Examine your current recruiting strategy to determine what your candidate pipeline looks like. As talent becomes more expensive it’s going to be essential that your strategy is in line with providing you access to the level of candidates that you need for your business so that you get the biggest bang for the buck.
5. Consider Strategic Cost Reductions. Many business owners assume the way to address payroll increases is to make staffing changes or pass costs off to customers. But before you cut employee hours or raise prices, determine if there are any there are other cost-saving measures you can take. Some options include negotiating better costs with suppliers or vendors or considering outsourcing non-core business functions like human resources or accounting services. Now is the time to do the work. The HR Hotline® is ready to help your business appropriately prepare for the impact of the upcoming minimum wage increases. Visit thehrhotline.com or email email@example.com to schedule a free consultation.