[ad_1]
"This causes a lot of enthusiasm among my clients: how to solve the problem of the $ 15 minimum wage?" says Craig Rowley, head of consumer practice at Korn Ferry. "Here's a major employer who announces that it's going to increase to $ 15 at the hour – not in two or three years, but for now."
Retailers and shippers were already preparing for a holiday season that was busier than usual on the most constrained labor market of the generation.
The sudden jump of Amazon wins both.
Unlike Amazon, which has alternative revenue sources such as advertising and its cloud computing business, a virtual store has less leeway for wage increases.
According to Rowley, a typical "work budget" for retail is limited to 5% to 12% of sales. Shareholders expect it to stay that way.
"Amazon is a darling of the investment community," says Rowley. "The market is seduced by their growth potential, whether they make a profit or not, which makes all retailers crazy."
Andy Challenger, Vice President of Challenger, Gray & Christmas, explains that employers have faced a shortage of staff during the Christmas holidays. The consequences of failure are real: gifts ordered online could arrive late and force repayments, stores could be overcrowded, and shelves could become messy, pushing more buyers to an Amazon with staff.
"Big-box retailers could cede more of their business to online retailers like Amazon, which have employees," said Challenger. "If you see very long lines waiting at a big retailer and you know you can just buy it online without having to wait, it makes it a little more appealing."
This does not mean that employers who are preparing for the holiday season – and beyond – are necessarily doomed.
First of all, it is not clear that Amazon will compete directly for the same workers. Amazon's distribution network is closer to the cities thanks to Prime Now hubs and Whole Foods stores. But its distribution centers are still generally located outside city centers and are therefore not as easily accessible as jobs in shopping malls and department stores.
In addition, work in the distribution centers requires some physical form, which makes the work less attractive for older workers and people with reduced mobility who may prefer customer service positions.
Laurie Bouillion Larrea, President of Workforce Solutions of Greater Dallas, a non-profit organization that connects job seekers with employers, also has many workers willing to work more hours or look for a second job.
"There are people who desperately need this second job, if only to pay for the benefits they get with the first job," says Larrea. She adds that even public school teachers are so poorly paid that they are willing to work elsewhere after classes or weekends.
Source link
