Majority willing to pay more for products and services; Half favor increase
if it means job reductions
NORFOLK, Va., May 14 /PRNewswire-USNewswire/ -- Hourly workers would
favor an increase of the current federal minimum wage even if it means
paying more for products and services as a result, according to The
Employment Guide(R) Hourly Employee Survey published by Dominion
Enterprises.
Nearly two-thirds (65%) of hourly workers surveyed indicated that they
would favor an increase in the federal minimum wage even if the consequence
is higher consumer prices.
When asked if they would favor an increase in the federal minimum wage
if it meant that a co-worker would lose his or her job, 50% of this same
group said yes.
"Hourly employees understand that raising the federal minimum wage
could lead to paying more at the cash register and a majority is prepared
to do exactly that," said Sharon Sewell, senior director of marketing,
communications and membership with the National Association of Workforce
Boards (NAWB), Arlington, Virginia. "A smaller, but still significant
number of people favor the increase even if job losses result. Taken as a
whole, the data suggests that there is popular support for raising the
minimum wage, as 31 states already have."
The U.S. House of Representatives and the Senate have voted to approve
a bill to raise the federal minimum wage to $5.85 per hour. This
legislation was vetoed by President Bush on May 1 because it was attached
to the Iraq war spending bill. A revised bill with tax breaks and a minimum
wage increase is expected to be sent back to the president. The proposed
federal minimum wage increase is a three-step plan: The minimum wage will
increase to $5.85 per hour 60 days after the bill is signed into law, then
will increase to $6.55 per hour one year later, and to $7.25 per hour one
year after that.
The findings are part of The Employment Guide(R) Hourly Employee Survey
published by Dominion Enterprises. Conducted in March, the survey was the
second in a series, the first of which was released in January. The surveys
will form the basis of a new quarterly index on hourly workforce trends.
Professor Christopher B. Colburn, Ph. D, chair of the Economics
Department of Old Dominion University, Norfolk, Virginia, who reviewed the
data, said, "Seeing layoffs in the workplace may create an uneasy
realization for hourly employees that they could be next in line. However,
I suspect that an increase in the minimum wage will not have a large effect
on the labor market for incumbent workers, but rather that seasonal,
part-time employment, and new entrants into the labor market may be more
affected."
High Satisfaction, Loyalty, Tenure
The findings of the March survey of hourly employees support those of
the January results in which hourly workers indicated they are optimistic
that they could find a new job, but most are satisfied with their current
job and are surprisingly loyal to their employer.
-- 84% indicated they are satisfied with their current job compared to 78%
in the January report.
-- 82% would like to remain with a single employer for most of their
career versus 79% in the earlier sample.
-- 65% have had no more than three jobs in the last 10 years compared with
61% in the earlier group.
The vast majority of hourly employees surveyed are happy being paid by
the hour. When presented with the statement "I would prefer a salary
instead of hourly pay" only 37% of respondents agreed with the statement.
Why Hourly Employees Leave
While pay rate is an important factor in why hourly employees leave a
job, The Employment Guide(R) Hourly Employee Survey revealed it is not the
only reason. Hourly workers-who, according to survey results, earn an
average of $14.25 per hour-are looking for an improved employment
experience, including health benefits and flexible hours.
When asked which three features would be most important in considering
a new job:
-- 80% ranked pay rate as important.
-- 58% said health benefits as important.
-- 44% of hourly employees cite flexible hours as important.
"Hourly jobseekers have told us they are willing to stay with one
employer. But loyalty has a price. Hourly employees want adequate
compensation and specific benefits. To retain a high quality hourly
workforce, employers must include these factors in the total compensation
package," said Jeff Littlejohn, vice president and general manager of The
Employment Guide(R).
He continued, "As the war for talent escalates, this will become
increasingly important, especially for companies in the service industry
which rely on their employees' relationships with their clients-and where
maintaining a high quality, consistent workforce is of utmost importance."
New Hourly Employment Index Planned
The 19-question survey of 500 hourly workers was conducted online March
14 - 20, 2007. The final sample represents the demographic profile of
hourly employees based on Census and U.S. Department of Labor statistics
for age, ethnicity and gender. The results can be projected on the hourly
employment population of the U.S. with a margin of error of +/- 4%.
The Employment Guide Hourly Employee Survey published by Dominion
Enterprises is conducted every quarter. Over time, the results will form
the basis for an index that tracks hourly workforce trends in the United
States.
Additional details from the survey-including pie charts and bar charts
of key findings-can be found at both http://www.EmploymentGuide.com and
http://www.DominionEnterprises.com.
About The Employment Guide
The Employment Guide is a division of Dominion Enterprises. The
Employment Guide and http://www.EmploymentGuide.com offer businesses a
comprehensive recruitment solution for hourly workers through a nationwide
series of publications, award-winning Web sites, and series of job fairs.
The free weekly publications are published locally in more than 75 markets
with a combined circulation of two million copies nationwide. The job
board, http://www.EmploymentGuide.com, attracts more than one million unique
visitors each month and features a candidate database and job postings.
Niche Web sites have been developed to serve in-demand industries such as
transportation and healthcare. Face-to- face recruitment is available
through The Employment Guide's job fair program, with more than 220 job
fairs conducted nationwide each year. For more information on The
Employment Guide, visit http://www.EmploymentGuide.com.
About Dominion Enterprises
Dominion Enterprises, headquartered in Norfolk, Virginia, is a leading
media and information services company serving employment, real estate,
automotive, recreation and industrial markets in the United States. The
company operates a variety of technology businesses that offer Internet
marketing, Web site design and hosting, lead generation, CRM, and data
capture and distribution services including Advanced Access, PowerSports
Network, and Dealer Specialties. The company has more than 500 paid and
free magazine titles such as The Employment Guide, For Rent, Harmon Homes,
Boat Trader, Cycle Trader and RV Trader with a combined weekly circulation
of over 5 million, and more than 40 market-leading Web sites such as
EmploymentGuide.com, ForRent.com, Homes.com, Jobalot.com and
TraderOnline.com reaching more than 8 million unique monthly visitors. The
company has nearly 6,600 employees nationwide and 2006 annual revenue of
over $850 million. For more information on Dominion Enterprises, visit
http://www.dominionenterprises.com.
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