Raising the minimum wage is one of the country’s top socioeconomic and political issues. Voters at large have shown support for minimum wage increases according to recent polls. A new survey from CareerBuilder indicates that many businesses are also in support of raising the minimum wage.
The survey reveals that 62 percent of employers who participated think the minimum wage in their state should increase. Fifty-eight percent of those participants are senior leaders at their companies. Harris Poll conducted the survey on behalf of CareerBuilder from May 13 to June 6 of 2014. The survey includes a sample of 2,188 full-time hiring and human resource managers and 3,372 full-time workers in the private sector across industries and company sizes.
When asked what a fair minimum wage would look like, only 7 percent of participants think a minimum wage of $15 per hour or more would be fair. Check out how the other participants answered:
- $7.25 per hour (current federal minimum): 8 percent
- $8.00 or $9.00 per hour: 29 percent
- $10.00 per hour: 29 percent
- $11.00-$14.00 per hour: 19 percent
- $15.00 or more per hour: 7 percent
- No set minimum wage: 9 percent
When asked why the minimum wage should increase, employers in favor of an increase gave business-related reasons for the support. A majority of the supporters say a higher minimum wage helps the economy and company retention. Additional reasons are below:
- It can improve the standard of living: 74 percent
- It can have a positive effect on employee retention: 58 percent
- It can help bolster 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
The employers who do not support an increase highlight the negative effects an increase may have on their business. See below for those reasons:
- 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
The survey showed that 27 percent of employers are hiring minimum wage workers in 2015. Forty-five percent of these employers are hiring more minimum wage workers than they did pre-recession.
An interesting statistic the study uncovered is that companies currently hiring for minimum wage positions are more likely to support a minimum wage increase than those who are not by an 11-point margin– 70 percent versus 59 percent.
Photo Source: Maryland GovPics