It was the summer of ’75. I was 11 and looking to make a few coins to support my baseball card addiction. The easiest way, I thought, was babysitting.
I approached my next-door neighbor, who had a 2-year-old daughter. We agreed on a price of 65 cents an hour.
After a few months, I realized something: I was grossly underpaid. My friends were making $1 an hour. It was time for a raise.
I remember putting together my argument: I was responsible, I arrived promptly and kept the house in order, I usually put the daughter to bed with little problem. I had proven myself. When I finally worked up the nerve, my “employer” agreed to my request, as long as I agreed to a few conditions of her own.
Forty years later, pay raises are inciting demonstrations across parts of the country. Specifically, thousands of frontline workers, including those who are the face of our retail brands, contend they are not making a livable wage. In cities such as Seattle and Chicago, these folks are pushing for as much as $15 per hour.
As a result, we as a country are being asked to assess our values. The questions are many, and the solutions are vexing:
▶ Should we even have a minimum wage? Should the marketplace dictate proper compensation based on market, skill and the classic dialectic of supply and demand?
▶ If we accept a minimum wage, what is considered a reasonable floor, one that provides minimal fairness to the worker while not overburdening the employer in a way that could “tax” the company into oblivion?
▶ Who has the right to determine minimum wages? Cities? States? The Feds?
As someone who distrusts both the Democratic and Republican parties and who is frustrated that thoughtful discussion is often debased into political mudslinging, I believe we as a nation are nearing a crossroads, one where the middle class is slipping, a growing population of college graduates will not find jobs in their fields, and an increasingly permanent line is being carved between the haves and have-nots.
There are compelling arguments on both sides of the debate. The “antis” contend inflated minimum wages will lead to the shuttering of small businesses, the loss of jobs, the compression of profits and the diminishment of investment. Put simply, someone has to pay for unfunded mandates, and in this case it is you.
The pros have their points, too. They claim that higher minimum wages mean more disposable income, increased tax revenue, lower employee turnover and a broader societal benefit.
Where do you stand? Our cover story by Samantha Oller (Click here to read the story.) suggests nearly six of 10 in our channel oppose a minimum-wage increase. In an industry that is decidedly anti-government intervention (unless it relates to correcting egregious inequities such as credit- and debit-card fees), I thought the gap would be greater.
Likewise, NACS has opted to stay out of the fray. I agree. As an industry that regularly talks about being an employer of choice, it does not behoove us to publicly target those who make the least and who, to be honest, can often sink or strengthen our brand.
As an example, I reguarly patronize a certain store in a local chain. I usually shop there in the early hours because of a particular CSR who is always cheerful and helpful. I wonder how much business she contributes to this chain’s bottom line.
That said, most workers perform dutifully but are nondescript. They are necessary cogs in your retail engine, but no more.
It is easy to point to Wawa, Kwik Trip, Sheetz or QuikTrip. They are top-decile performers that can afford to absorb higher minimum wages. But as one top executive privately told me, it wasn’t always the case at his company.
“We had to decide who we wanted to be and what kind of people we wanted working for us,” he said. “We realized that if we wanted to be a great company, then we had to pay better than minimum if we wanted to attract better talent.”
I personally do not favor a federal minimum wage, but I do support a state minimum. Each state has its own economy, cost of living and idiosyncrasies. And an argument can be made in favor of the largest markets having the right to set minimum rates to remain economically competitive.
But beyond the law is your mentality. Are you about paying the least to keep the most of every dollar turned, or are you about building a brand that represents something greater than the final penny?
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