Apr 272015
 

In the U.S., there has been a considerable amount of discussion and disquietude concerning the current minimum wage in the country. One of the major points of emphasis is the minimum wage in other countries and how it compares to the minimum wage in the U.S. According to the Bureau of Labor Statistics, it is important to make the necessary adjustments to the conceptual framework of different economic policies worldwide, or otherwise the numbers that are being compared can provide a distorted image.

 

What this means is that simply because the minimum wage in one country may be higher in one country than in another, does not necessarily mean that the higher wage creates a better situation. All of the variables and economic concepts must be taken into consideration.

 

International Economic Systems

 

There are a number of large organizations, such as the International Labor Organization, which provide comprehensive reports on wages on a global scale. These organizations allow you to view how wages have changed over time in different economic environments. The reports generated by these different organizations can provide a snapshot of comparative levels in different areas of the world.

 

Making Comparisons around the World

 

In the U.S., where there is a great deal of controversy concerning current wages, the minimum wage is $7.25. There is a call from American fast-food workers to increase the minimum wage from its current level to as much as $15.00 per hour. One might be wondering where workers would come up with a number that is so astronomically high in comparison to the current rates. The answer is Australia. Deputy reports that until recently Australia had a minimum wage of $16.88 AUD. That has actually increased over the summer by a total of three percent.

 

What most people who use the Australian minimum wage as an argument for substantially raising the minimum wage in America don’t understand is that there are multitudinous variables that go into arriving at the minimum wage. Additionally, Australia is an anomaly when it comes to countries with a minimum wage. As a general rule, countries that have a set minimum wage are faring worse than those who do not have a minimum wage. For instance, out of the top nine countries in Europe that have a minimum wage, all but one are doing worse than the countries that don’t have a minimum wage.

 

According to the Business Insider, currently, the U.S. is ranked seventh among industrial nations that have a minimum wage. To give a point of reference of disparity, Sierra Leone has the lowest minimum wages at only $0.03 per hour. So, there are minimum wages that run the gamut.

 

America’s two closest neighbors represent the great polarities of economic concepts and the environments that they produce, with each having a minimum wage that is reflective of their economic environment. In Canada, the minimum wage is $9.75 per hour, whereas in Mexico the minimum wage is $0.66 per hour. The economic infrastructure in each of these countries is completely different and the poverty lines are worlds apart as well.

 

Minimal to No Impact

 

Based on a report released by The Fiscal Times, 1,400 real world minimum wage increases had no impact on the employment in that country or region. This is important because there are certain organizations that have asserted that raising the minimum wage to $10.10 per hour, which is what the current administration is proposing, would increase the unemployment rate. This conclusion is based widely on the perception that raising the minimum wage would cause some companies to have to lay off employees.

 

The differences of opinion have to do with the perceived elasticity of the employment rate in America. What this means is the level of sensitivity the employment rate is concerning the fluctuation in wage rates. The study revealed by the Congressional Budget Office reveals that the employment rate has little to no responsiveness to the change of the minimum wage.

 

The truth is that there is still a great deal of research that needs to be done to gain an accurate bearing, but all of the initial indicators point to the fact that raising the minimum wage would not be as devastating to the job market as many would have the majority of people believe.

Nov 182014
 
Innovative ideas to drive employee engagement

Employee engagement is important for business results. Turnover has high costs in recruiting and training new employees, and by improving engagement, you can reduce employee turnover. Also, various studies have shown that engaged employees are more productive, produce higher quality work, and provide better customer service. Here are some innovative ways that you can boost your employee engagement. Listen to employee suggestions Get employees involved more with the company by soliciting their ideas and suggestions. Often, employees may have great ideas about how your company could improve certain things, which management has never thought of. Knowing that their opinions are valued makes people feel more engaged. Make sure that you act on some of the suggestions, too, and then employees […]

Oct 272014
 

Finding reliable and hardworking employees isn’t as easy as it seems. Whether you are a small business owner or a part of a human resources division, finding the right candidate to fill a position requires skill and endless hours of going through resumes. In most cases, the recruitment process doesn’t result in the ideal candidate you are looking for to fill the job position. You shouldn’t need to settle for less than what you are looking for in an employee. Fortunately, there are a number of useful tactics that you can incorporate into the recruitment process to secure the employee that you deserve. The Checklist According to About Money, the first step to securing the employee that you are looking […]

Oct 202014
 

In today’s competitive business environment, success depends on many factors, but most executives would agree that staffing is the most crucial piece to the puzzle. That’s why a smart recruitment strategy is essential to any organization. Just a decade or two ago, HR recruiters relied on classified advertising to reach potential employees, but finding the best candidates now takes a combination of techniques. Here, we’ll discuss four of the top strategies HR recruiters can leverage for more successful outcomes. Social Media Strategy Social media recruiting is a great way to find new employees. Millions of business professionals use social media networks like Twitter, LinkedIn, Facebook and Google+ every day, and HR recruiters should, too. Try these social media recruiting strategies: […]

Sep 152014
 
5 Ways For Employees to Trust One Another

No matter the industry a business is operating in, an efficient and effective workplace involves having employees who trust one another. Trust helps to boost productivity levels, enhances exceptional customer service, and provides a workplace where employees enjoy working. Trust is not instantaneously established among workers, so it is important for managers to create this atmosphere.   5. Create and enforce rules and standards Your employees will have a hard time trusting one another if there are no rules to follow. No one will know what to expect from one day to the next, and not only does this hinder trust, but it also lessens productivity. When you create rules and standards, don’t make them so strict that no one […]

Sep 082014
 
Employee engagement - is it becoming a concept to rethink?

Employee engagement is a big topic these days, as companies recognize what this can mean to their productivity and performance. A 2014 survey reported that 78 percent of executives surveyed rated engagement as an important or urgent issue. Research has shown that engaged employees are more productive, provide better customer service, and stay in their jobs longer. Employee engagement is moving from an annual survey, to an on-going business concern. Are your people engaged? Do you think they’ll keep working for you 5 years from now? Every now and then, organizations should rethink the way they treat their staff. Surveys are an excellent way of finding out if your company’s production goals are being met or not. Of course, there […]

Aug 292014
 
FMLA - Not Just Coverage for Pregnancy

Many business owners think of FMLA only when an employee is ready to go out on maternity leave or if an employee is facing a catastrophic illness such as cancer. FMLA also covers migraine headaches, back pain, influenza – and other illnesses that are considered to be “chronic or a serious health condition”. Employers and their supervisors and managers need to know the “red flags” on what to consider to be a FMLA occurrence and how to manage it. As a reminder, the Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave.  FMLA is designed to […]

Jul 302014
 

Payroll is an important aspect of running a business with employees. An efficient and organized process can make payroll less cumbersome and costly. Here are seven simple and effective payroll tips that can benefit every business owner.   1. Get the required information upfront. Make it standard practice to collect the necessary information from employees and independent contractors, including proof of identification, EIN/social security numbers, and W-4/I-9 tax information, at the start of a working relationship. (If you hire new employees, report the event to the state within 20 days). Though you may not pay an independent contractor enough to necessitate issuing a formal W-2 at the end of the year, having the required information on hand will reduce the […]

Apr 112014
 

Companies know they have to maintain a certain level of branding when dealing with consumers – but what about with prospective employees? Company branding is becoming a major element to the hiring process. In an age where social media has personified businesses to a level not experienced before, human resources must understand the company’s image must also correspond to the way it presents itself to candidates. A Randstad survey from 2013 found an inviting company brand may be the key to attracting talent. It found 20 percent of employees under 30 would rather work at a lower-paying job with a brand they embrace than a position at a less reputable or welcoming company. So how can employers establish a strong brand? Through many ways: […]

Jan 142014
 

The current job market is saturated with highly qualified individuals, and the most qualified job seekers are looking for much more than just a paycheck in their search for employment. In order to attract the best candidates, you should have certain measures in place in your recruiting and hiring processes. What do the top talents in your industry look for? How can you attract them? Here’s a look. The Employer of Choice You can start by approaching talent acquisition and recruitment from the perspective of branding. If you position your company as the “employer of choice” to potential employees, you will be able to choose from the best of the best. To do so, you’ll want to describe what differentiates […]