Companies hire workers because they need to increase productivity and growth. On the other hand, every worker should be an asset and not a liability. Retrenchments start when the wage bill begins to affect sustainability. There is a proposal in the US to increase the current minimum wage. To businesses, it will add overhead costs.
This cost could be passed on to consumers and affect the cost of living. To cushion themselves from the impact, companies take different measures. They may cut on non-labor costs or adopt automation. The options may help reduce the need to hire more people to do manual work. The companies will benefit but people in minimum wage jobs will be affected.
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How rising minimum wage jobs impact a business
Governments around the globe have been pushing for an increase in minimum salary. They argue it will raise the living conditions of those jobs. The motivations behind this proposal are admirable. However, the reality is that it will affect companies with narrow profit margins. They may find it difficult to absorb increased salary costs.
The minimum wage problem is complicated. Its implementation causes further complications and lasting solutions are needed. Writing about this subject demands a thoughtful and rational approach. The writer has to properly communicate the complexities of the issue. To properly discuss these problems and solutions, students need to read multiple texts and understand their arguments. For instance, visiting https://papersowl.com/examples/minimum-wage/ gives them access to a variety of free essays on the issue. The topics can help them define the problem and explore its impact better. The writer may analyze the dynamics in the job market and problems facing small businesses.
Due to higher payrolls, bigger companies have to deal with widening overhead costs. Workers, Governments, and organizations are all pulling in different directions. A wage increase will indeed improve the lives of many people. Nevertheless, it is important to consider both the good and the bad side.
How does automation affect wages?
An increase in manual work and entries offers an advantage to hourly workers. It creates more job opportunities and the need to work more hours. The problem with manual entries is the higher possibility of errors they pose. Most of the manual entries are automatable and can be done by machines. To gear up production and minimize errors, organizations adopt technology.
They use tech to complete jobs previously completed by people. As governments push for higher minimum wage, automation offers a ready solution. It serves as a cost-effective answer for companies struggling with minimum wage. It is a labor solution that is affecting many work areas. It impacts both the manufacturing and services sectors in different ways.
- The solution streamlines processes in workflows resulting in improved efficiency. The benefit is saved costs and reduced need for hiring more hourly workers.
- Automation is useful for enhanced product/service quality. It delivers results with minor errors and huge accuracy. Organizations would favor automation due to minimize defects and higher client satisfaction.
- One machine can do the work that demands a large number of humans. The need for fewer humans means companies save big on labor costs.
Automation and the impact on low skilled minimum wage jobs
The speed of automation across industries is at its peak. Already, worries are spreading fast across the hourly workforce. There are concerns about the potential impact automation has on low skilled workers.
- Impact of low-skilled labor. Most low-skilled workers could be displaced as machines do their roles.
- As some jobs get displaced, automation may create a variety of new jobs. The areas of software development and freelance remote jobs may increase.
- Companies will save on wage bills due to decreased need for hiring. The field of remote freelancing may help companies do the same jobs at a lower cost.
If the labor force wants a robust and equitable future, all stakeholders must find a balance. There needs to be a compromise between adopting more technology and offering fair pay. Organizations and the labor force need to adapt to the terrain of changes. They need to find solutions that benefit both. As new minimum wage policies come in, organizations may have limited options. They might turn more to automation to mitigate the wage impact.
Conclusion
Companies around the world are currently dealing with an intricate minimum wage issue. The issue is multidimensional and is pushing organizations to find a way to get around it. One of the solutions companies are adopting is automation. It is helping protect themselves from rising labor costs and improve efficiency. The disadvantage to waged workers is the loss of jobs and lack of sufficient livelihoods.
