Retail Observer

RETAILOBSERVER.COM NOVEMBER 2016 40 I usually try to write about issues that directly impact my readers— motivating employees, managing inventory and improving bottom line profits. I tend to write about things clearly impacting the industry and retailers. Occasionally, though, my research takes me beyond our small world and into the greater business environment. We've heard a lot recently about income inequality, raising the minimum wage and the gender wage gap. Only recently have I begun to understand how these issues impact our businesses. • The World Economic Forum ranks the U. S. just 74th of 145 countries on wage equality. • In 2015, women working full time in the United States typically were paid just 80 percent of what men were paid, a gap of 20 percent. • According to the U. S. Census Bureau, out of about 12 million single parent families in 2015, more than 80% were headed by single mothers. • 17.4 million children are being raised without a father; 45% of them live below the poverty line. • More than 50% of minimum wage earners are women. • 4.3% of the nation's 75.9 million hourly-paid workers and 2.6% of all wage and salary workers earn minimum wage. • 23 States and the District of Columbia have minimum wages above the Federal minimum. • The typical minimum wage worker is not a high school student earning weekend pocket money. In fact, 89 percent of those who would benefit from a federal minimum wage increase to $12 per hour are age 20 or older, and 56 percent are women. • The annual earnings for a full-time minimum-wage worker are $15,080. • Raising the minimum wage does not result in higher unemployment. More than 600 economists, including 7 Nobel Prize winners wrote, "the weight of evidence (is) now showing that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers." • A July 2015 survey found that 3 out of 5 small business owners with employees support a gradual increase in the minimum wage to $12. • Increasing the minimum wage is not bad for the economy. Since 1938, the federal minimum wage has been increased 22 times. For more than 75 years, real GDP per capita has steadily increased, even when the minimum wage has been raised. • With a minimum wage income, even working full time, many workers will qualify for most federal safety net programs in the United States. Although there are certainly social issues underlying any discussion of minimum wage increase and equal pay for men and women, it's mostly a business issue. We're not talking about people who won't or can't work; we're talking about people working full time. People earning just over $15,000 a year cannot purchase the products you sell—they can barely afford the rent payment on a TV. They are not homeowners and not climbing the economic ladder. They are using social services like food stamps that they would prefer not to need. They cannot help grow the economy, start a business or create jobs for others. Women cannot afford to be heads of their households earning only 80% of their male counterparts. It's not good for them or for the children many of them are raising alone. What can you do? Follow the lead of companies like DaVita and Salesforce. Ken Thiry, CEO of DaVita addressed his commitment to building more equality into his business by starting with his Board of Directors. "We hope to be a role model for other companies. If we can do it, other companies can too." The DaVita board has expanded the gender and racial diversity of its Board to 45%. Last year, Salesforce announced their commitment to doing a comprehensive analysis of the salaries of the more than 17,000 global employees to determine if men and women were paid equally for comparable work. Approximately six percent of employees required a salary adjustment, and roughly the same number of women and men were impacted. Look at your team. Who are your low paid employees? Drivers who leave the last and sometimes most lasting impression on your customers? Where do you have turnover? Are you recruiting women to your sales team? Does your delivery crew—primarily men—earn more than your administrative team—primarily women? Support efforts in your city and state to raise the minimum wage. Rising tides lift all boats. Higher paid workers are more likely to fuel your business. More disposable income leads to more spending. I care about my community, my country and the businesses we all support. And….don't forget to vote! Elly Valas is an author, speaker and retail consultant. She can be reached at elly@ellyvalas.com or 303-316-7568. Elly Valas Retail Views RO THE BUSINESS OF WAGE EQUALITY

• Cover