Minnesota companies digging into profits for pay raises in tight labor market
Gauthier Industries in Rochester has had to revamp its entire wage structure as it deals with a record number of retirements, big competition for new hires and current employees' concerns about inflation.
The 87-employee metal stamping business used to hire experienced welders, metal grinders and computerized machine operators for $15 to $17 an hour. Now, Gauthier can pay $20 to $25 an hour for new hires, because competition is fierce.
"And then you have to be fair to your own employees," said CEO Mike Jensen. Wages need to be adjusted higher to be consistent, making the budget for payroll "a constant moving target."
The Society for Human Resource Management (SHRM) and audit, tax and advisory firm Grant Thornton are seeing the dilemma play out nationally. Skechers Outlets This year Ikea...