If you’ve been paying attention to the news in the past few months, you’ve undoubtedly heard about the labor shortage, the “great reshuffling”, and the other economic issues facing our country.
While many of the current trends we are seeing are good things overall, each one presents a unique challenge to businesses and business owners.
In this article, we will discuss the issue of the cost of labor costs the challenges today’s business world.
Rising Minimum Wage
On the surface, it is hard to argue against raising the minimum wage. There are very few people on earth who would say that workers shouldn’t earn a living wage for the jobs they do.
However, when wages rise significantly, this sends ripples throughout the economy that are often unexpected.
Take, for example, a cleaning company that pays entry level employees $15.00 per hour. In order for the cleaning company to make a profit, they need to charge the client quite a bit more than $15.00 per hour. This is because the company has to factor in costs associated with insurance, materials, benefits for employees and, of course, the employees’ salaries.
Now, if the minimum wage were to rise significantly higher than $15.00 an hour, the client will likely need to be charged even more, or the cleaning company may not be able to sustain their operation.
Besides all of the above, it’s also important to consider experience. More experienced workers are unlikely to agree to work for the same wage as a new employee who has never done the job before. In these cases, businesses will have an even tougher time making a profit at a reasonable price point for clients.
Increasing Inflation
Across the country, the cost of everything has gone up. Inflation is at record high levels and the markets have responded in the only way they know how: by raising prices of goods and services.
While there have been steps taken by the federal government to curb inflation, by all estimates, we’re still looking at a long road ahead before we can see the light at the end of this rough economic tunnel.
Very Thin Margins
As a result of the rising minimum wage, inflation, and many other issues, most companies are operating on razor thin margins.
For this reason, it is often hard (in most cases) to blame company leaders for deciding to raise prices. After all, they need to be profitable, or they simply won’t be able to continue to serve customers.
As a result of these thin margins, many companies are instituting strict rules and have very little ability to give out discounts to any customers.
3aclean’s Commitment to Quality
Despite all of the above, 3aclean is committed to providing the same level of superlative service we always have. We will never compromise quality and will always ensure that our customers are satisfied. If you have any need for our janitorial, commercial cleaning services, or commercial disinfectant services, contact us today!
