Tuesday, June 8, 2021

Competing with McDonald's for Future Workers

In Moab, UT, McDonald's is advertising some of the highest wages for staff ever seen. Although Summer tourists make up a large part of the revenue for area businesses and fast-food restaurants, motels and attractions require more employees, local year-round businesses are forced to pay even more than that just to get applicants in the front door.

As mentioned in a previous article, a modular factory that is forced to offer more money to new hires than to workers that have been there for years could cost the factory an additional $1,000,000 in payroll and benefits even if they were to hire just one new employee.

Rising LBM costs, transportation costs and now rapidly rising labor costs look like they will be with us for at least the next 6 months according to some leading economists.

If you own a factory and don't have a "Plan B" or even a "Plan C" in place to meet those and future challenges to your business, maybe you should be planning an exit strategy!

Gary Fleisher is the Managing Director and contributor to the Modcoach Network and its affiliated blogs.

Email at modcoach@gmail.com

1 comment:

  1. Competing with McDonalds?
    Think about how stupid that sounds.
    McDonald's takes persons off the street and pretty much paid them minimum wage.
    The housing industries had people working for years, in "skilled labor" jobs. These workers are paid below what skills they have. Raises were infrequent and wasn't much when you finally got one. Now, the industry is whining about McDonald's pay increase!?! I guess that shows how much the housing industry really values their employees...
    I mean when you think about it McDonald's pay shouldn't have been even close to what these skilled workers were being paid, let alone those with longevity...
    If the housing industries are crying about having to pay their skilled workers as much as McDonalds, then it only goes to show how under paid these workers are. If hiring new workers at McDonald's wages is going to put them on par with what the industry is paying workers who have been "for years" then all I've got to say is the industry has been taking advantage of these steller workers for a long time now. The industry NEEDS to pay them what they are really worth. Just so you know it's NOT McDonald's wages.
    offer more money to new hires than to workers that have been there for years