More On Minimum Wage Increases

California has become the first state to commit to a bump from the current minimum of $10.50 to $15 by the year 2022. The quick story is here.

But for a complete look at how a minimum wage hike will affect the cleaning industry, make sure to read Contracting Profits' November/December cover story.

A few things business owners should remember: In a recent Contracting Profits survey, facility executives were asked the level of importance to them that janitors in their building were paid a living wage. The top vote-getter, “very important,” received 48 percent, while an additional 38 percent of those asked said it was “important.” A total of 13 percent were “neutral,” while only 1 percent said it was “not important.”

In that same survey, facility executives also were asked what would validate needing to pay a higher price for cleaning: 60 percent said they would pay a higher price for cost increases due to a minimum wage increase; 42 percent said they would pay a higher price to provide janitors with a living wage.

Some BSCs also expect their businesses to benefit from minimum wage increases: Studies show that higher-paid workers are more loyal workers, resulting in lower turnover and, in turn, savings on hiring and training. Additionally, studies also show that higher-paid jobs attract higher-skilled workers and that higher-paid workers work more efficiently, which may also help a BSC's bottom line.

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