Managers Can’t Save the World With a Minimum Wage: How To Do It Without Raising Costs
The American economy, it’s been said, has never been in such dire straits before.
A decade ago, the unemployment rate was around 9.6 percent, and it’s not too far from 12 percent now.
Even at that level, though, the U.S. is faring better than most countries in the industrialized world.
So what is it that’s holding back America’s recovery?
And, if you’re a manager, how can you keep your job?
To understand the issue, we spoke with Michael B. Thomas, director of human resources and chief operating officer at PwC’s global HR firm, as well as a professor of management at the University of Massachusetts at Amherst and the author of three books on the subject.
Below, we share our thoughts on the job market and why we’re here to help.1.
What is a minimum wage?
A minimum wage is a wage that’s set in law.
In the United States, it is the hourly wage paid to workers that are eligible to receive overtime pay.
If a worker makes $15 per hour, for example, he or she can receive overtime if they are performing an essential job.
That can be something like cleaning, cooking, or transporting goods.
For most people, the cost of these jobs is minimal.
It can be less if the worker is doing it for someone else, but generally speaking, it isn’t.
The U.K. has the world’s highest minimum wage, at £10.50 per hour.
That’s higher than the U