The majority of employers are in favor of raising state minimum wages, according to a survey by Careerbuilder, who found that two-thirds of them were in favor of doing so.
But why have employers — historically opposed to minimum wage hikes — turned into supporters? Here's what CareerBuilder's Harris Poll of 2,188 HR professionals found from employers who want an increase in their state minimum wage:
- It can improve the standard of living: 74 percent
- It can have a positive effect on employee retention: 58 percent
- It can help bolster the economy: 55 percent
- It can increase consumer spending: 53 percent
- Employees may be more productive/deliver higher quality work: 48 percent
- It can afford workers the opportunity to pursue more training or education: 39 percent
Also read: Minimum wage hike could improve health
They were also asked what they thought the minimum wage should be increased to. (Current federal minimum wage is $7.25 per hour.) Here's what supporters of an increase said:
- $8 or $9 per hour: 29 percent
- $10 per hour: 29 percent
- $11-$14 per hour: 19 percent
- $15 or more per hour: 7 percent
- No set minimum wage: 9 percent
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The one-third of managers who didn't support the increase were asked why they were opposed to it. Here's the breakdown of their replies:
- It can cause employers to hire less people: 66 percent
- It can cause issues for small businesses struggling to get by: 65 percent
- It can cause hikes in prices to offset labor costs: 62 percent
- It can mean potential layoffs: 50 percent
- It can lead to increased use of automation as a replacement for workers: 32 percent
- Wages for higher-level workers may suffer and create retention issues: 29 percent
Other tidbits from the survey include:
- 68 percent of female managers support an increase, vs. 57 percent of male managers.
- 71 percent of young employers (ages 18-34) support an increase.
- 61 percent of middle-agers support it.
- 56 percent of those 55 and older support it.
- 68 percent of those in retail support it — the highest of any industry.
- 52 percent of manufacturers support it — the lowest of any industry.
- 64 percent of managers in the Northeastern U.S. support it;
- 63 percent in the South;
- 62 percent in the West;
- 58 percent in the Midwest.
- Highest percentage of support by company size (67 percent) came from managers with companies employing between 501-1,000 people.
- Lowest percentage by company (59 percent) came from managers with small businesses (less than 50 employees).
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
