Minimum Wage Issues Demand Maximum Judgment from Owners

The "ripple effects" of the Minimum Wage changes are affecting all retailers. The biggest question: not "What will this mean?", but "How will we address this in our operation?"

First issue, of course: WHEN will your business implement any changes? Well in advance of the laws? Or, coincident with the laws? 

Why does the timing matter? Because of the perception. Are you out in front of this issue? Or, seeming to lag behind?

Next big issue: IF the minimum wage (the "floor") of the pay scale in your business needs to be raised to comply with the laws, what effect will this have on the wages of your mid-management team?

• Your current mid-management people may expect a separation between the minimum wages paid and their paychecks.
• If the minimum wage increases cause you to increase the wages of your entry-level employees, might you also need to increase the pay of essentially ALL of your employees.
• The bigger ripple effect may be how other employers in your community handle these first two issues. That is, are you remaining competitive for attracting and retaining the best people?

There are no right or wrong answers here. Every retailer must evaluate this, and determine what is appropriate for their business.

And, of course, that analysis must include how you will be able to pay for any changes in payroll.

• Increase prices for your customers?
• Reduce expenses in other-than-payroll areas?
• Expect more productivity from employees?
• Introduce other forms of compensation, such as more flexible scheduling, more paid time off, etc?

Again, there is no one-size-fits-all answer. But, we sure encourage all retailers to ponder this issue, and to examine all of your options.

Get Out in Front of This Issue!

As we all know, good people are very hard to find. How you choose to compensate - and therefore motivate and retain - your key staff is a key factor in the on-going viability of your business. We urge you to get out in front of this issue!

Want more ideas? Check out this thoughtful article from The Library for Owners at The Retail Owners Institute®: Beyond the Paycheck: Motivate Employees with Creative Compensation.

Get Ready for "Multi-Generational Retailing"

You've heard it. The "conventional wisdom" that suggests that retailers should move away from the Baby Boomers, and retool their operations to appeal to the Millennial Generation – those "digital natives" who now are 18-35 years old.

Hmm. Follow that conventional wisdom at your own peril! Instead, we believe retailers should focus on making their stores MULTI-GENERATIONAL. After all, each group is ± 80 million people, totaling about half the U.S. population. 

You don't have to choose one group at the expense of the other. Cater to both of these major market segments. Yes, simultaneously! (Just not the same!)

• Do NOT ignore or marginalize the Baby Boomers as being in their "sunset years".
• Show the Millennials the respect they deserve.

"One size fits all" does not apply! 

By strategically and pro-actively managing your operation to be Multi-Generational, you can – and must! – treat the Baby Boomers and the Millennials the way each group most wants to be treated. 

• Baby Boomers have always done things their way, and show no signs of changing now. More so than prior generations, they are healthy, active, traveling, engaging in causes, participating in their communities – and yes, spending on themselves and their families. They are internet savvy, but still do "recreational shopping".
• Meanwhile, the Millennials are a market not to be ignored. While they may not fit the conventional definitions of "families", they are forming households, having children, commuting to jobs, going places and doing things. They are discerning shoppers, and will "put their money where their mouth is". There are causes they care about, and will mirror that in their shopping choices. Their "comparative shopping" is done online, and they are very purposeful when it comes to purchasing. They will not linger!

Retailers must think strategically about your unique competitive advantages. Then, update them to cater to EACH of these important market segments, on parallel tracks.

It's called "multi-tasking", and you can do it!