Recruitment Solutions

What Raising the Minimum Wage Could Mean for the Hospitality Industry

Employco USA

Employment trends expert explains why increasing the min. wage could have a negative impact on workers 

Minimum WageWith Inauguration Day upon us, many people are looking ahead at the first steps President-elect Joe Biden plans to take when he gets into office. One of his first major proposals (which Biden introduced last Thursday in his $1.9 trillion relief package) will be to increase the federal minimum wage from $7.25 to $15.

However, this proposal to dramatically increase the minimum wage is receiving pushback from critics who say this could spell the end for struggling small businesses who are already struggling to stay afloat during the COVID-19 pandemic.

“Asking small business owners to begin paying their employees $15 an hour will be a hardship that could break many companies,” says employment trends expert Rob Wilson, President of Employco USA, an employment solutions firm with locations across the country.

Wilson says that the minimum wage hike will also lead to more job loss as business owners continue to invest in automation over workers.

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How the 2020 Election Will Impact Minimum Wage and Job Security

Employco USA

HR specialist discusses how voters could alter minimum wage for millions of Americans

Election 2020Earlier this week, presidential candidate Joe Biden took to Twitter to share his proposed changes to minimum wage if he is elected, including ending tipped minimum wage and raising the minimum wage to $15/hr.

In addition to these national campaign promises, Floridians will have a proposed minimum wage amendment on their ballots come November, potentially raising their minimum wage to $10/hr on September 20, 2021.

“If voters pass the amendment, the plan would be to raise the minimum wage to $10 next year, and then gradually continue to increase the wage until it hits $15/hr by 2026. This would double the current minimum wage in Florida, and mirror similar amendments which have already been put into practice in states like Illinois,” says employment expert Rob Wilson, President of Employco USA, a national employment solutions firm with locations across the country.

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Don’t Celebrate Yet: Here is Why the Latest Jobs Report is Misleading

Employco USA

Employment expert says latest numbers are a false positive

Jobs ReportLast Thursday the Labor of Department released new figures showing that the United States gained 4.8 million new jobs in June. In addition, the unemployment rate hovered at 11.1%, lower than the predicted 12.4% rate. President Trump heralded the numbers as proof that the economy is “roaring back” after months of economic destruction caused by the COVID-19 pandemic.

“The latest job report seems like a major cause for celebration,” says Rob Wilson, President of Employco USA, a national employment solutions firm with locations across the county. “However, those of us within the employment industry are not celebrating just yet.”

Wilson, an employment expert who has helped hundreds of clients navigate the impact of coronavirus on the workplace, says “These new hire numbers are a false positive. At Employco, over 200 of our clients received PPP. Many then slowly rehired formerly laid-off employees in May and June.”

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‘Fundamentally Broken’: Is the Debt Worth the Degree?

Employco USA

Employment expert weighs in on how Skilled Workers fare Vs. College Grads

Student DebtFormer Trump administration official A. Wayne Johnson recently described the student debt program in this country as ‘fundamentally broken.’ For the millions of college students who have an average of $37,172 in debt by the time they graduate, these words no doubt ring true.

And, students are not the only ones who are feeling the pain. Research shows that college debt leads to poor sleep and high anxiety, potentially causing employees to be unmotivated and unfocused while at work, in turn harming employers and their bottom line.

This begs the question: Is college for everyone? Or, would entering a skilled trade be a smarter choice for many young adults?

“We have this idea in our society that a college degree is the gateway to financial freedom and success,” says Rob Wilson, employment trends expert and President of Employco USA. “But the statistics don’t necessarily bear that out. Most college grads end up moving home after graduation to live with their parents, and it takes several months or more for them to find a job. In many cases, that job won’t be in their field of interest, and these young people end up spending a good chunk of their paycheck paying off their hefty student loans.”

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The Fearful Cost of Going Freelance

Employco USA

Employment expert reveals the hidden dangers of the gig economy

Gig EconomyMore than one-third of Americans are now participating in the new “gig economy,” in which they work part-time or contracted positions, instead of dedicated full-time positions. And research shows that over half of these freelancers view their gig positions as permanent, rather than temporary. However, a new study warns that the gig economy could be destructive for Americans’ health and well-being.

Rob Wilson, employment trends expert and President of Employco USA, says, “The research shows that a gig economy leaves most part-time workers without healthcare, retirement funding, dental care, or disability benefits. Meanwhile, many of these ‘giggers’ often have to work more than one job in order to make ends meet, and this is particularly increasing among female workers.”

In fact, Wilson says that holding multiple part-time jobs can actually be destructive to a woman’s earning potential, saying, “One study showed that women who held a number of part-time jobs in their 20s saw absolutely no increase in earnings in their 30s, meaning that even as their experience and their families’ needs grow, they do not earn a dollar more.”

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Why so Many Millennials Are Leaving Jobs Due to Mental Health Issues

Employco USA

Employment trends expert talks new study which says that half of millennials have left a job due to a mental health crisis

Mental HealthA new study found that 50 percent of Millennials and 75% of Generation Z’ers say that they have left a job due to pressing mental health concerns. The study, led by Mind Share Partners, SAP, and Qualtrics has discovered that younger generations of workers are much more likely than older employees to leave a job due to the need for mental health care.

“The study is very important because it reflects generational differences as far as employees’ approach to therapy and self-care,” says Rob Wilson, President of Employco USA and employment trends expert. “Today’s incoming workforce is much more well-versed in therapy and the need for mental health services, and as this research shows, they seek out these resources when needed, even if it means leaving their current job.”

Wilson says this study helps reveal where companies and employers can do better in attracting and retaining younger talent.

“Offering benefits that include comprehensive mental health care can go a long way in attracting younger employees,” says Wilson. “Therapy is costly, but as research shows, there has been a 47 percent increase in major-depression diagnoses among millennials since 2013. Since therapy is the front-line recommendation for depression treatment, you can expect that nearly half of millennial workers are either in therapy, seeking therapy, or being advised to see a therapist by their doctor or family and friends. Hence, offering a benefit plan which covers these life-saving services and is in-network with many mental health providers would be a smart idea for employers.”

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How to Secure Top Talent in a Tight Job Market

Employco USA

Employment expert explains how your company can shine as an outstanding employer

JobsThe national unemployment rate is just 3.7%. In August, 130,000 new jobs were created.

“The number of Americans who are currently employed is at a high of 157.9 million,” says Rob Wilson, President of Employco USA and employment expert. “Labor force participation has not been this high since August 2013. While this is great news for employers, it means that companies need to work harder to stand out to prospective hires.”

“Working with an employment solutions firm such as Employco USA is a wise way to stand out from the pack,” continues Wilson. “Not only will this help increase the number of candidates you reach and help streamline your hiring procedures, but a human resources firm can also help you to establish a robust benefits package.”

From an economic standpoint, you need to think in terms not only of salary and health insurance, but also a total compensation package, says Wilson.

“There are many benefits which today’s employees are looking for, including whether you match a 401(k), what is the value of the paid time off offered, along with medical, dental, vision, and life insurance” he explains.

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What Employers Can Learn from the Mississippi Raids

Employco USA

Employment expert Rob Wilson discusses how companies can safeguard their staff

Immigration and Customs Enforcement (ICE)Last month, ICE officials detained hundreds of undocumented workers in Mississippi. When the raids (which took place in 7 different cities and 6 different work sites) were complete, 680 employees were in the custody of U.S. Immigration and Customs Enforcement officials.

As the debate over illegal immigration rages on, the Mississippi raids also raise an important concern for companies. How much blame do hiring managers and employers hold when it comes to using undocumented people for labor? Is this just a public relations nightmare and staffing disaster for companies, or can charges be levied against these employers?

“The answer is yes, to put it simply,” says Rob Wilson, President of Employco USA and employment expert. “It is illegal not only to hire an undocumented person, but also to recruit them or refer them to another employer. Employers who knowingly do so and are shown to have a ‘pattern and practice’ of hiring undocumented workers can be fined $3,000 per worker and even face potential jail time.”

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Salary History Ban Expands to Illinois Employers

Employco USA

Employment expert explains why Illinois employees can’t be asked about their past salaries any longer

SalaryEmployers in Illinois will be required to make changes to their hiring practices in the near future. Starting September 29th, it will become illegal for employers to ask prospective employees to share their salary history.

“Currently, 17 states and 19 localities have banned questions about salary history during the application process, and Illinois will be joining these ranks shortly. Several states like Alabama have banned these application questions for all potential employees, and other states like California go so far as to require employers to provide pay scale information if employees request it,” says Rob Wilson, employment trends expert and President of Employco USA.

Wilson says that many experts agree that salary history questions can lead to income inequality for women and minorities.

“The belief is that inquiring about salary history can create a vicious cycle in which women are paid less presently and in the future, simply because they were paid less in the past,” explains Wilson. “Concerned civil rights activists point to the fact that women are offered less when compared to similarly trained and educated males, even when these interviewees are coming right out of college.”

So, what should employers consider moving forward?

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By 2030, 20 Million Workers Will Lose Their Jobs to Robots

Employco USA

Employment expert discusses breaking new study which spells disaster for manufacturing employees

RobotA new study from analysis firm Oxford Economics predicts that by 2030, over 20 million workers in the manufacturing industry will lose their jobs to robots.

“As machines become cheaper to build and artificial intelligence technology becomes more comprehensive and affordable, many industries are going to become robot-centric,” says Rob Wilson. “Just look at the automotive industry: Starting in the 1980s, companies were spending billions of dollars to create robots to perform basic tasks in their automobile factories. Now, 43 percent of the world’s robots are used by the automotive industry. We should expect to see a similar trend in manufacturing as well, although the good news is that robots create jobs in some fields even as they take them away in others.”

Wilson cautions that battles over minimum wage could increase the application of artificial intelligence in some industries, especially as it relates to entry-level, unskilled work.

“Findings show that fast-food workers could be at serious risk of losing their jobs to robots in the next several years. One study found that each new robot added per 1,000 workers causes wages to drop in the surrounding area by around 0.25 and 0.5 percent,” says Wilson. “We can clearly see that in specific industries, the impact of automation can not only impact job numbers, but also a worker’s wages.”

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