minimum wage business definition

I am an owner of several fast-food restaurants. I am currently paying my employees a competitive wage, but our business suffers from high employee turnover. Do you think paying employees a little extra, say twenty-five cents per hour, would have much of an impact on the turnover?

No. Minimum-wage jobs are entry-level jobs that employees expect to leave. You would be better advised to look more carefully at turnover patterns and try to alter them rather than reducing overall turnover with very small wage differentials. Probably the best you can do is lengthen the tenure of employees who are productive. Consider “longevity rewards," such as raises or periodic bonuses for those who stay for a certain amount of time. Also consider why employees are leaving. Could your scheduling be more accommodating to your good employees? By paying significantly more than minimum wage, you might be able to increase productivity and reduce turnover, but the cost could outweigh the benefits.

Phyllis G. Holland, PhD, Professor and Head, Department of Management, Langdale College of Business, Valdosta State University, Valdosta, GA