Minimum Wage Increases and its Impact

Minimum Wage Increases and its Impact

Minimum wage will be rising in Ontario, and with that comes rising costs. Some suggest that we will actually be putting more spending dollars into consumers’ pockets and spurring more spending.

Whatever the outcome, there will be a direct hit to overhead costs, even if spending will bring in more money at the till. To respond, organizations now more than ever need to reinvest in their people to reduce overhead costs attributable to hiring, on-boarding, and retaining good help, and to prevent high turn-over, encourage employees to stay longer and be more engaged, and to be better able to improve the overall customer experience.

While many industries will feel the crunch, the retail industry, with a younger cohort of workers and heavier than average turn-over, will likely feel it most. As a recent MacLean’s article suggests, a higher proportion of teenagers work at a minimum wage job in most provinces across Canada today than a decade ago (49 per cent across Canada, 70 per cent in Ontario in 2016), and even a growing proportion of adults have been doing so as well.

The need to invest in professional development programs is probably more critical now than ever. Building stronger teams to reduce turnover, improve staff engagement, and meet sales targets is no longer a nice-to-have but a must-have if organizations are going to survive the pinch.

To do this, companies need to:

1. Provide team-building solutions to help staff improve customer interaction and sales experience

2. Support managerial staff to create engaging and motivating in-store environments for sales associates

3. Introduce incentives, career development and growth opportunities to encouage staff to stay longer

4. Enable better communication between staff members and their  customers

5. Provide staff with sales tools to hit targets and achieve collective results

At Desire2Lead, team-building and professional development of your staff is our specialty. Talk to us today to see how we can help.

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