Several months ago I was opening mail and I noticed a new wages poster. The poster indicated that minimum wage had increased in Missouri to $10.30/hr.
I thought, it’s time to make some changes to my salary chart and I was forced by law to increase the wages of only one of my employees.
At that time, I was also inspired to adjust my starting wages after seeing that the minimum wage will increase for the next 3 years and I will be forced to increase my wages for all my employees.
What about you? Have you noticed that minimum wage has increased in your state?
As an employer, if wages are increasing, this means that you are forced to pay higher salaries which means that you will need to increase your childcare rates.
Moreover, most businesses right now including childcare are competing with the salaries of retail chains and fast food places that are starting off paying $11-15/hr.
The only way that a childcare business owner with employees can compete with the growing trend of higher wages and sign on bonuses is by increasing child care rates.
If you are not sure how to go about increasing your rates, here’s a few tips for you:
- Issue a notice to your parents that announces a rate change and includes why you are increasing your rates.
- Give your parents a 30-day notice to allow them time to adjust to the change.
- Create a new rates chart that includes the increases.
- Create a new monthly operating budget based on the new rates.
I look forward to hearing your thoughts about this post.If you need some assistance with, I am just a phone call away. Be sure to contact me today for business coaching.
Be sure to grab my new book, Lead by Faith at www.shiketamorgan.com.