This Ontario minimum wage increase will come into effect in stages starting January 2018!
The Ontario government plans to raise the minimum wage to $15/hour by January 2, 2019. It is perhaps the most important and controversial change we’ve seen hit the Province in a very long time.
The Ontario Minimum Wage will rise from the current level of $11.40/hour to $14/hour on January 1, 2018 and to $15/hour on January 1, 2019, followed by annual increases at the rate of inflation. Part-time students under age 18 will see minimum wage increases to $13.15/hour on January 1, 2018 and to $14.10/hour on January 1, 2019.
What impact will the increase in minimum wage have on your business?
There is a growing concern that the increase will put some small businesses at risk and force businesses into cutting jobs and/or increase prices to net out in losses in customers and revenue.
Restaurants Canada has reported that the move will cost an additional $47,000 per year, which the group says would wipe out the profit margin of the average restaurant in the province.
The Retail Council of Canada (RCC) has commented that the only ways in which most retail businesses can address rising labour costs are either to reduce hours or to raise prices. They have gone on record to say price hikes are not feasible in most cases. If Ontario retail prices were to rise, there would be an immediate impact on Ontario consumers and a longer-term shift of consumer purchases to foreign online vendors, which would itself lead to fewer jobs in Ontario.
Whatever the impact – the change is coming. The time to prepare your business is now! The most obvious way to combat a potential loss in revenue is to seek more aggressive cost cutting methods.
Untapped Savings – Where do you cut costs?
One area quite often over-looked is cash handling. Industries in retail, restaurant, grocery, convenience etc.., in general terms all tend to skim the surface of a lean cash management process but don’t really have a grasp of the full cost of the movement of cash within their business. Therein lies the opportunity for untapped savings. How much savings? As much as 75% of your current spend or up to 30 hours or more a week in a cash intensive business.
So what happens if less than 20% of your total payments processed are cash? There is still opportunity for savings. Regardless how much cash you process; most businesses still put out a standard float and have processes and people to count, secure, oversee and manage that float. What if you could implement a solution that would eliminate or reallocate all or large % of that resource to revenue generating functions – more sales for example?
GEMSYS specializes in providing solutions to cash intensive and non-cash intensive business. We provide you the roadmap to recoup and avoid cash handling costs so that you can move forward with a more efficient and lean business process and ultimately, a healthier bottom line.