3 Reasons why a minimum wage increase will be good for business

The minimum wage is a current hot topic.  It likely had a significant impact in the current B.C. Election but I’m not a political analyst by any means.  My evidence is purely anecdotal.  It’s acquired by speaking to clients, friends, family and the public in general  and they say they are tired of barely making ends meet.  Especially when you live in Greater Vancouver.  In the past, you could escape the unreasonable prices by moving a little further east and commuting in.  Now there is no respite from the high housing and living costs.

Let’s say someone makes the current minimum wage in B.C.,   (http://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice/employment-standards/factsheets/minimum-wage) of 10.85 per hour.  If they work full time, at 40 hours per week, each month they will have earnings before tax of $1,880.  A good rule of thumb for money management is to cap your housing costs at 30% of your gross income which is $564.  I don’t know about you, but the last time I looked, the only rental suites available for $564 in Greater Vancouver are shared rooms and even then, maybe in not so great an area, never mind an area that is easily accessible by transit because there is no way you can afford a car! 

Check out this cost of living calculator for Burnaby, B.C.  Based on no car and a 500 sq ft apartment the average costs are over $3,000 per month!  Try to do that on $10.85/ hour.   No wonder kids are staying at home until they’re 25 or 30.  They can’t afford to live anywhere else.(http://www.costofliving.welcomebc.ca)

Now that we’ve put the minimum wage into perspective and realized it’s really only for good for people in a multiple income household, let’s talk about some of the reasons why paying more is a good thing and not something to automatically fear as being too costly for your business.

1.       You attract a higher caliber of employee.  You get what you pay for.  How many times have you said that over your life time?  You want someone that is intelligent, self-motivated and has a good work ethic?  You need to attract those people, and let’s face it, when you’re making close to minimum wage, every extra dollar counts.  This is good for your business because an intelligent, hard working individual who has some ambition, can do the work of two unmotivated workers.  It comes down to human nature, and the reality that people are driven to care for their basic needs of survival.  If they aren’t meeting those needs they can become depressed and uninterested in what they are doing.   When you have unmotivated depressed employees, your customers and clients can tell and who wants to interact with an unpleasant, depressed person? 

2.       It boosts the economy and that is good for business.  More money being paid to people means they will spend more money.  They still aren’t earning enough to start saving a significant amount of money.  They will still spend it on meeting their basic survival needs plus perhaps move up the hierarchy of needs and start meeting other needs.  https://www.simplypsychology.org/maslow.html

3.       It’s good for your health.  That wonderful employee you attracted because you were willing to pay just a little more?  They can do the day to day things without you.  Stress is one of the number one factors in determining health.  How frustrated do you get when your employees just don’t “get it”.  How often do you find yourself having to look for new employees?  How much time do you have to spend making sure that everything is running smoothly?  When was the last time you took a one or two week, uninterrupted holiday?  Running on stress can seem effective at first because you get a lot done but the toll on the body is nasty and it’s just not sustainable.  Never mind that it takes the business you once loved and were super excited about running and sucks ALL THE FUN out of it.  All the fun and satisfaction gone… 

Maybe the minimum wage increase isn’t a bad thing for business after all.  The benefits?  More time to work on your business instead of in it.  More customers spending more money because the economy is recovering.  The best of all in my opinion?  The free time to enjoy it all.

If you’re worried about how to manage increasing costs, make sure to book an appointment with someone from your local Kemp Harvey Group office.  We’re here to help you make the most of your business and don’t forget,  there’s Strength in Numbers. 

**Remember to seek the advice of your accountant.  This information is for general informational purposes only and is not intended to replace the individualized advice you receive from them.

 

A New Partner at the Burnaby Office

Kemp Harvey Hamilton is THRILLED to announce we have a new partner.  Melanie Schroeder is joining us effective today as a full partner.  She is a very experienced public practitioner and is also almost finished the Financial Divorce Specialist course.  She is as enthusiastic about accounting as Cynthia.  We hope you will join us at our Open House on December 1 2-5 pm and meet her in person.  We are so happy that we have made this connection and hope this addition to the firm will complement the great team we have already gathered.

Welcome Melanie!

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Possible mail disruption & your accounting needs

Canada_Post_Rotator2Canada Post has issued notice of a possible postal disruption  In the event of this occurrence, contact your local office regarding account payments, filing deadlines and tax payments.

Burnaby Office:

Almost everything can be done electronically through our encrypted ShareFile service, however, for corporate accounts, please call reception to arrange for pickup.   All payments can be done by credit card and if you have something to go to CRA and cannot do it online, please drop it off at our office for our convenient semi-monthly CRA courier.

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Burnaby office closed for the holidays

Just a reminder, our annual holiday closure at the Burnaby office will be from December 23, 2015 to January 3, 2016 inclusive.  We will be back in action at 8:00 am on Monday, January 4, 2016 and ready to tackle tax season.

December 3 – 2-5pm – Burnaby’s annual “Whine & Cheese” is a “don’t miss” event!

The Burnaby Office of the Kemp Harvey Group
Cordially Invites You to Our Annual
Customer Appreciation
“Whine and Cheese”
Thursday, December 3, 2015
2:00 p.m. to 5:00 p.m.

Kemp Harvey Hamilton Inc.
Chartered Professional Accountant
Suite 153 – 4664 Lougheed Highway
Burnaby, BC 604.291.1470
burnaby@kempharvey.com
(Note our new location)

Wine, cheese and appetizers will be served. Whining will be provided. Please come and have a drink with us in our brand new office and share of stories of accounting suspense and intrigue
Monetary donations are being collected to support PADS (Pacific Assistance Dogs Society) www.pads.ca
RSVP not required but appreciated

2015 Open House Invite 2