Lower Minimum Wage Means Lower Income and Morale

Another Sign of the Times

Just when you thought the economic news could not get much worse, news that Colorado will be dropping its minimum wage comes through. According to a recent story from the Associated Press, the state is lowering the minimum wage by 3 cents per hour this year. This might not seem like much, but the impact on morale of those who work for that amount might be negative, even if it doesn’t affect the bottom line much. The change might make some wonder if they’ll ever be able to do much on their wage, and if all their hard work is ever going to amount to anything.

Why the Change?

In order to keep workers in line with inflation, Colorado and nine other states base their minimum wage around the cost of living. This method is meant shield lower paid workers from being unable to meet rising costs on necessities. Unfortunately, using this system also means that when the economy takes a dip the minimum wage falls with it too. The minimum wage in Colorado will now be $ 7.25 an hour, as low as it can go because that’s the Federal minimum, and you can’t go below that. This is small consolation for those whose already low wages will be going down. It can be tough enough knowing that you are already working for the lowest amount in the state, but for that amount to drop further can be hard on the self esteem, even if the decrease is only a few pennies per hour.

The Good News

Labor officials in the state are fairly confident that the majority of employers who pay minimum wage will continue to pay employees the previous amount. It makes sense that if some employers are maintaining wages for their employees others will follow suit. If an employer chooses to drop to the new minimum wage, he may risk losing workers to other jobs. Employers should bear in mind that lowering wages might preclude them from keeping all their employees, and their savings might end up being minimal at best. Though the difference in wage isn’t significant to the end result, a forced pay cut can undercut an employee’s perceived worth, and create a negative division between labor and management.

Buying some Good Will

If an employer is willing and able to pay just a few cents more than his competitors it can certainly create a more harmonious workplace. Employees that make a little more than others in the field are likely to stay loyal to a company, and feel a little more appreciated and valued. The slightly higher wage can bring a sense of pride and cause workers to want to put in more effort. Particularly in today's economy, no one wants to be out looking for a new job, so if an employee is relatively satisfied with her position she will likely stick around. Paying a little more can help to retain staff, and keep them happy.

There is Help if You Need it

If you are one of the many who is working a minimum wage or part time job right now it can be tough to make ends meet. Sometimes unexpected costs come up before payday. In that case, you might look into a payday loan if you need a little quick cash to float you.

Find Premium Jobs at Doostang today! Try our FREE basic membership. www.doostang.com