The last year has been defined by disruption when it comes to business facilities. Many offices and industrial workplaces are just now beginning the reopening process and bringing some or all of their staff back to in-person work. And while it may look like things are finally returning to normal, there’s another upheaval that has facility operators and businesses of all kinds on their heels.
In the post-pandemic world, companies all over the nation are finding it more difficult than ever to find workers. This issue has led to a dramatic worker shortage, and businesses everywhere are searching for solutions— whether it’s higher wages, enhanced employee perks, or other incentives to attract workers.
But what does that mean for the cost of running your business? Here’s what we know.
A New Study on the Effects of Raising the Minimum Wage
The desired impact of raising the federal minimum wage from its longstanding position of $7.25 is clear. The hope is that it would elevate the earnings and total family income of low-wage workers across the country, even helping lift many families out of poverty.
A new study from the Congressional Budget Office suggests that this would, in fact, be an effect of raising the federal minimum wage. However, a side effect would be that other workers would become jobless, resulting in lower family incomes and many individuals and families falling below the poverty line. This is because some businesses will seek to account for higher wages for employees by reducing their overall workforce.
How to Prepare for Rising Wages
Suppose worker wages continue to rise, which may occur due to mandated minimum wage or voluntary wage increases like those adopted by Wal-Mart and other industry leaders. What does that mean for you?
One of the best steps you can take is to assess your workforce and the tasks associated with running your business and determine which of those tasks may be better served by a third party. Sure, worker wages for those vendors will rise, which may be reflected somewhat in the provider’s prices. But, these dedicated experts are better equipped to absorb those costs for their specific industry.
For example, when it comes to facilities maintenance, higher wages don’t have to mean you pay a full-time employee or team more than before. That said, when working with a third-party facility management provider such as Encompass, you should expect rates to rise at least somewhat. As we pay our vendors more over time, our business costs will increase, and our rates will have to adjust accordingly.
Facility Services Costs Will Rise — Here’s How You Can Be Ready
The best way to be prepared for the upcoming rise in the cost of facility services is to begin planning and budgeting for the future now. Your best bet? Reduce costs by eliminating emergency calls and work with vendors that offer a full suite of services you need to manage your facility efficiently, effectively, and safely.
This is where Encompass has excelled for countless clients — providing services that are configurable based on your facility’s budget without ever sacrificing quality or expertise. Additionally, their proprietary software gathers data to predict when service is needed on vital machinery, eliminating expensive emergency calls.
Whether your goals include general facility maintenance, getting compliant, or reopening your facility for the first time after a long closure period, we have the skills and equipment necessary to get the job done. And because we offer competitive pricing and industry-leading proprietary software that helps you make smarter facility decisions regarding utility costs, space configuration, and efficiency, even rising worker wages won’t keep you from saving in the long run.