Hello Astronology Readers! Can you believe we are in the 4th quarter of 2015 already? As we begin to close out the year, Astronology will review some critical topics in Human Resources that had a large impact in 2015. In this issue, we will explore the impacts of technology and minimum wage increases.
Technology has impacted human resources in many ways. For instance, we’ve previously discussed the use of gamification in onboarding and recruitment measures. Another impact of technology on human resources is the use of social media in recruitment. Research concluded that more socially active organizations on-line are
- 40% more likely to be perceived as more competitive
- 57% more likely to get increased sales leads
- 58% more likely to attract top talent
With 27% of millennials already taking on managerial positions, the use of social media will most likely increase. Generation Z, children born between 1995-2010, will be seniors in college by 2015, and beginning to graduate summer 2016. Some of these individuals may already be working as interns in your organization. Technological advances and social media use are activities individuals in this generation are used to. How comfortable are you with social media and technology usage?
Minimum Wage Increases
Another hot topic in 2015 is the minimum wage increase debate. In 2016, the New York State minimum wage is set to increase to $9.00 an hour. There is also a projected increase for fast food workers to have the minimum wage set at $15.00 an hour by 2018. As Astron Solutions is a New York based company, National Director Michael Maciekowich has given previous insight on this issue:
Numerous Astron clients in New York State have called, concerned that the ‘fast food’ minimum wage will in essence become the new state minimum wage, in that these organizations compete for entry level staff with the fast food industry. As the ‘fast food’ minimum wage increases to $15.00 over the next four to six years, organizations that compete for staff with this industry will have no choice but to raise their minimum wages to compete. This will also have a domino effect, in that this increase in the entry wage will create pay compression with coordinators and supervisors in the same work units. This compression will add unforeseen additional budgetary impact. For non-profit organizations, this will add to concerns of how to address increasing pay expenses given already shrinking revenue dollars.
With the upcoming 2016 elections, the state topic of minimum wage is still very concerning for many human resources professionals. We will all have to keep a close eye on what happens, and prepare as best we can for whatever decisions are made from the newly elected White House and Congress in regards to federal minimum wage. We will also need to carefully review the decisions that impact state minimum wages. For instance, currently Portland, Maine has rejected a $15 minimum wage increase, whereas Washington State has elected to take a $12 minimum wage increase that will occur slowly through 2018. Are you aware of the decisions your state has made in regards to minimum wage increases? Are you keeping tabs on possible talks of a minimum wage increase, and creating a strategy as to how your organization can handle any changes?
As always, Astronology encourages you to write to us and share your insights on the hot topics in human resources today. Are technology advances and minimum wage increases something your organization is dealing with firsthand? Share your thoughts with us! We’d love to share them with the rest of our Astronology readers!