It's an interesting paradox: Even though unemployment is at
its lowest level in decades, many of the available jobs just
don't pay workers enough to live on and support their families.
But entrepreneurs have got to take an empathetic approach. Failure
to take the time to understand and assist your low-wage workers
with the life hurdles they face every day is a missed opportunity
to build loyalty and reduce turnover.
How can you handle such delicate situations in a professional
way? Randy D. Davis, president and founder of R. D. Davis
Enterprises, a human resources consulting firm in Winter Park,
Florida, offers these suggestions:
1. Start by paying a competitive wage for the position. That
doesn't mean you pay a janitor an executive's salary, but
keep your wage levels in line with the going rate for comparable
jobs in that market.
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2. Help employees increase their take-home pay through the
Earned Income Credit (EIC) program offered by the IRS. Eligible
employees can receive part of their earned income credit in their
paychecks throughout the year, instead of waiting until they file
their tax returns. Eligibility requirements and other details are
explained on IRS Form W-5, which participating employees must
complete each year. Contact the IRS for more information, and keep
a supply of W-5 forms on hand.
3. Educate employees so they know what their benefits packages
offer, how to use them and what their value is. "It's not
just providing benefits, it's telling them about it," says
Davis. "Constantly sell your people on what you're doing
for them."
4. Learn about community resources. Most cities have a range of
services available to low-wage workers, but people either don't
know about them or don't know how to take advantage of them. Do
the research and share it with your employees. Davis recommends you
start by contacting your state's welfare-to-work program for
information on various support services, which might include
low-cost health care for children, subsidized child care and
assistance with transportation.
5. Help employees with financial-planning issues. Conduct
mini-seminars on various aspects of personal financial management,
such as saving, buying a home and using credit wisely.
6. Train supervisors to deal effectively with a low-wage work
force; employees in lower income categories have special needs. For
example, unexpected car repairs—an inconvenience to a
midrange earner—would be catastrophic to a low-wage
earner.
Your supervisors need to learn how to put such issues into
perspective and respond appropriately. Make sure they treat each
worker with respect and provide training and support when
necessary. Above all, help engender positive attitudes toward
management and supervision.
According to Davis, the primary reason people leave a job
isn't the salary—it's because of their direct
supervisors. "Low-wage employees often leave because they
don't get feedback, or when they do get feedback, it's
negative," he says. "Low-wage earners need a lot of
positive feedback because they have a lot of negativity and stress
in their lives. So catch people doing things right and praise them
for it."
Jacquelyn Lynn left the corporate world more than 13 years
ago and has been writing about business and management from her
home office in Winter Park, Florida, ever since.