Should recruitment and selection be influenced by the minimum wage?

Whether businesses like it or not, their recruitment and selection strategies are influenced widely by external factors, including those from specific industries and the economy as a whole.

And one of the most important factors that could sway an organisation's decision to enter the recruitment market could be the government's moves regarding the minimum wage, a new American survey suggests.

As part of its 'America Employed' campaign, recruitment firm Express Employment Professionals recently surveyed over 1,000 business owners on their hiring intentions for 2014. The findings indicate that well over a third (37 per cent) of organisations are planning to increase their staff numbers this year.

However, the respondents that signalled this intention did so with the assumption that the current minimum wage is not raised. When asked about their recruitment plans in the event of an increase in the minimum wage, 39 per cent of respondents said they would actually reduce their hiring efforts should this become a reality. For those organisations that are already paying minimum wage, more than half (54 per cent) said they would cut down their future recruitment.

“It's good news that more than one third of employers plan to hire new workers this year,” said Bob Funk, CEO of Express Employment Professionals.

“Nevertheless, those plans are not set in stone. Major policy changes, like raising the minimum wage, could mean employers won't have the resources to put more people to work despite their desire to.”

The findings could have implications in Australia as well, where debate currently rages around the government's proposed plans to slash the minimum wage over the next decade.

Regardless of external factors such as the minimum wage, continuous recruitment and team building should be a high priority for any business that wishes to remain competitive. Working with a recruitment consulting specialist can help your organisation make informed hiring decisions every time.