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Old 05-03-2021, 04:42 PM   #28
BoatHouse
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Quote:
Originally Posted by Winilyme View Post
I don't think there's any question that the low wage compared to EVERY surrounding state results in a lot of potential labor going elsewhere. Businesses of course are free to pay what they want. So, if business A plans to pay $7.25/hour and business B $12.00/hour, we know who's going to have an easier time filling their positions (all other things being relatively equal).

The conundrum is that businesses will argue (accurately so in some cases) that increasing the minimum wage to something competitive with surrounding states will make it difficult for them to stay in business. Yet those same businesses will say they may go out of business if they can't fill their positions. From a legislative standpoint, I'm not sure what the middle ground is but from a business owners standpoint, I think you need to increase wages - at least during the bread and butter summer season - to try and fill those positions...and increase prices to some extent to cover that. Seems to me that the summer folks would support those increased costs. But, do you unwind the hourly wage you pay to your employees and reduce costs to your customers during the off season?

I'm assuming the problem isn't so bad during the off season when hours decrease and positions are filled with local employees who don't have the options that potential summer employees have. But, if I'm a 16-year plus old kid whose parents summer in the lakes region (or a college kid who's looking to travel anywhere for a good three-month job and a little adventure), I'm not going to opt for $7.25 in NH when I can easily get 30-40% or more than that elsewhere. Just like Tummyman's grandkids.

I'm glad I'm not a small business owner in the retail or hospitality industry. There doesn't seem to be any good answer.
What if the business keeps the hourly pay at $7.25/hour, but offers a bonus if the employee works 10-12 weeks?
For example - Bonus pay of $5/hour. An employee that works 30 hours/week for 12 weeks could earn $1,800 bonus. Pay 50% of the bonus after 1-2 weeks and remaining 50% after the 10-12 week period.
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