Minimum wages are set to rise to $20 an hour by 2021 under the new coalition government. With the New Year upon us, the first of a series of incremental increases has already been announced. While this is great for employees, it will have a significant impact on hospitality and retail businesses across the country.
So, how will your business survive in this new environment? Here’s three tips that could help you mitigate the impact of this change.
Create a good employer brand
With the rise in labour costs, you’ll really want to attract the best possible talent.
Make your business somewhere people want to work by creating a culture that isn’t just incentivised by a pay check.
Celebrate excellence by providing rewards to well performing staff, such as naming them employee of the month; organise regular activities for your team to socialise and bond as a team; and offer all employees the opportunity for growth in their role.
Focus on efficiency
The old adage ‘time is money’ will ring even more true with increased labour costs. Focus on making sure you’ve got efficient systems in place so that your outgoings are as low as possible.
Implement a solid rostering system that allows you to know who is working and what they will be doing. Develop procedures that help you to stay in control of the business on a day to day basis, from knowing what stock has been ordered, to seeing your daily, weekly and monthly profit. Create open communication channels between your employees and human resources team, to make sure any issues get ironed out quickly.
Test and measure your systems and procedures, and repeat until you have it down to a fine art. The more efficient your team, the healthier your books will be.
Keep your employees at the top of their game with regular training. Not only do well-trained staff work more productively and create less errors, they also help to entice repeat customers.
Whether it’s a video tutorial, accredited hospitality paper, or upskilling by a more experienced member of the team, training of any kind is an investment in the future of your business.
The new minimum wage will come into play before you know it, so start getting prepared now.