Question

There has been a lot of discussion about raising the minimum wage. Several state and local governments increased their minimum wage in January 2018. What impact would raising the minimum wage have on an organization?

Answer 1

answer-

There would some positive and negative impact on the organization by raising minimum wages-

Positive impact-

Workers stay with employers longer (instead of seeking out better-paying work with other companies) reducing businesses’ turnover, hiring, and training costs.

More work from the workers for the wages would increase the productivity of the organization.

Raising minimum wages may reduce chances of strike or lock down in the organization.

Raising minimum wages would increase the rate of

More motivated and happy, workers in the organization.

negative impact-

Employers with tight budgets may lay off employees to remain solvent. Some employees would make more, but others would have to seek other employment – stressing the unemployment system.

Companies may pass on the cost of increased wages to consumers, in the form of price increases (the “scale effect”). This would raise the cost of living and create a need for further minimum wage increases.

Businesses may freeze new hires, limiting opportunities for recent college graduates and others entering (or re-entering) the job market

Corporations may outsource more jobs to countries with lower (or non-existent) minimum wage standards.