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Old Sword's picture

Employees Wanted? Employees want more pay

Is it the economy? The lack of human capital? Or the inability of franchisees to pay an attractive hourly wage?  The costs of franchising - from inflated startup costs to inflated COGs (so the franchisor can take a cut on the supply side) thru the huge GROSS revenue cut the franchisor takes - it's no wonder that franchisees are the first to scream about increases in the minimum wage.  My guess is the lack of hiring has more to do with non competitive wages. 

The participation rate is still very low in historical terms so there are plenty of bodies to be found.  It's not the lack of applicant supply - it's the lack of applicant interest at current wages. Let's see how the continued increase of the minimum wage plays out with franchisee default rates. 

It's hard to be fully staffed

Just look around at all of the hiring signs. Restaurant and hotel owners are really struggling to find people to hire. We are not able to fill our payrolls. It's been an employees' market for sometime.

Why are franchise jobs so soft?

Are the job numbers in franchises at their lowest point in nearly five years because the economy is turning south? Or, is it because is it because the economy is at full-employment and finding new workers is really tough?

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