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As an employer, can someone help me understand the concept of a "living wage", and how it should influence the wages that I offer to my employees?

For example, suppose I have three workers.

One is 19 years old, and still lives at home. He has a High School education, rides his bike to work, and has no dependents.

The second is 27 years old. He has a wife and two small children, and lives in an apartment. He has student loans totaling over $100k, and drives a 2010 Toyota Sienna with a $250/mo lease payment. His wife has chosen not to work and stays home with the children.

The third is 53. He decided he wanted to work in Los Angeles, so he moved here with his wife, who has a good job as an accountant. They have no kids, and their house and car are paid for.

All three were hired at the same time, with no experience, and have worked for me for six months. They have all shown similar aptitude for the work.

If I want to incorporate the concept of a "living wage" into my payroll, how would I approach these three employees?

Why did you hire someone so overqualified for the job?

The living wage is gonna put the second guy (the overqualified dude) into bankruptcy.

Oh geez. I just discovered that I make above "poverty wage" but below half the "living wage" for my area.

:( Totally sad now.

just me wrote:Why did you hire someone so overqualified for the job?

The living wage is gonna put the second guy (the overqualified dude) into bankruptcy.

No kidding. A living wage is not meant to bring everyone up to the same standard of living - it is meant to provide a minimum standard. That guy with the van and the loans is in for some major financial problems if he makes a living wage.

H.

just me wrote:Oh geez. I just discovered that I make above "poverty wage" but below half the "living wage" for my area.

:( Totally sad now.

It is not what you have, it is who you are. Fortunately for me, I am wealthier for knowing you.

H.

cinepro wrote:As an employer, can someone help me understand the concept of a "living wage", and how it should influence the wages that I offer to my employees?

According to the living wage calculator, you should employee the guy with the bicycle $11.37 an hour, the guy with the student loans $22.95 an hour, and you should lay off the guy with the working wife--with a living wage, each family only needs one breadwinner.

That was easy!

Analytics wrote:

cinepro wrote:As an employer, can someone help me understand the concept of a "living wage", and how it should influence the wages that I offer to my employees?

According to the living wage calculator, you should employee the guy with the bicycle $11.37 an hour, the guy with the student loans $22.95 an hour, and you should lay off the guy with the working wife--with a living wage, each family only needs one breadwinner.

That was easy!

Phew!

Analytics wrote:

cinepro wrote:As an employer, can someone help me understand the concept of a "living wage", and how it should influence the wages that I offer to my employees?

According to the living wage calculator, you should employee the guy with the bicycle $11.37 an hour, the guy with the student loans $22.95 an hour, and you should lay off the guy with the working wife--with a living wage, each family only needs one breadwinner.

That was easy!

I guess it would definitely pay to keep my wife at home and pregnant under that system.

Of course it pays to keep a spouse at home as free labor! Duh.

just me wrote:Of course it pays to keep a spouse at home as free labor! Duh.

Yes, there have been times where I thought having a "wife" would be nice.

Or I could just employ a housekeeper.