The Impact of Increasing Minimum Wage

Answering Services Reduce The Impact Of Increasing Minimum Wages On Small Businesses

Rising minimum wages throughout the United States will definitely have a tremendous impact on small business owners. With a $15 minimum wage gaining momentum, it will be necessary for owners to course correct in order to minimize the impact. The sensible solution is to leverage the support of an answering service.

The reality is, owners will have to pay more to hire new people and by default, pay more for existing employees. A higher minimum wage also means that it will be a challenge for employers to increase wages of high performers. Simply put, there will be less money available for payroll.

Last year, more than 81.9 million workers aged 16 and older in the United States were paid hourly. This represents 58.5% of all wage and salary workers. Among those paid by the hour, 434,000 workers earned a minimum wage of $7.25 per hour.

The Impact Cost For One Employee As It Pertains To Answering Services

In the realm of telephone answering and call center services, the situation is about to change and, in many cases, already has. As an example, if a TAS needs to hire more agents, a reasonable average wage would be about $21,008 per year or slightly over $10/hour. By the time we get to the year 2025, the same employee will cost close to $31,200, which is about a 50% increase. 

Knowing that answering services are person dependent, each additional employee puts pressure on the payroll line. Other small business owners are experiencing the same pressure. This is the perfect opportunity for TAS owners to start marketing their answering services as a solution to reduce labor costs for small businesses.

Something To Share With Your Prospects

Begin educating your prospects and leads on the value of outsourcing their telephone answering to you. Don’t forget to highlight live virtual receptionist services either. Ensure your marketing messaging discusses how your TAS is the solution they need to offset employment costs. Start creating your marketing plan as soon as possible so you can turn the impact of increasing minimum wages into an opportunity for you to capitalize on.

You’ll want to highlight the benefits your service offers such as:

  • 100% U.S. Based
  • 24/7 Live Answering
  • Bilingual Answering Services
  • Substantial ROI
  • Eliminates training costs
  • Reduces burdened payroll costs

In addition, as a TAS owner, be sure to include in your marketing messaging the fact that your answering service assists prospects with “appearing” bigger than they are and helps them to project a higher level of professionalism while increasing their overall credibility. If you are an ATSI Award of Excellence winner, you’ll definitely want to make sure you highlight that fact as well, since it’s third party validation of the value of your service.

Even though all of these benefits are somewhat intangible, they all contribute to increasing the tangible aspects which are more leads, more sales, loyal customers and greater profits.

More Benefits And Reasons For Small Business Owners To Outsource to Your TAS

If a business owner is considering using your answering service as a method to reduce the impact of increasing minimum wages, be sure your sales person is mentioning that instead of hiring more people, they now have the opportunity to work with professional trained/certified call agents that can best represent their business for significantly less money.

Outsourcing to an answering service or call center enables your prospects to be efficient, flexible and productive. Your services, enables them to now be virtually open 24/7/365, giving them a wider competitive edge over their competition. With this edge, your prospects and leads will increase their odds for achieving their sales and profit targets. Your TAS service will deliver a higher ROI to them, while enhancing their business reputation and customer experience.

Final Words

At the end of the day, it makes good business sense for business owners to outsource to a live answering service versus hiring more staff because their overhead cost drops immediately.

Documented, recorded and delivered, there isn’t a better or more effective alternative for small businesses to reduce the impact of rising minimum wages. Begin marketing this message sooner than later.

Rising payroll costs impact every business and regardless if your TAS primarily supports small businesses or more corporate enterprise, your service is the solution that every business should leverage.

Contact ATSI today for more information on how you can strategically prepare for increasing minimum wages, as well as other best business practices. 866-896-2874

 

 

 

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