In this week's Trend Alert, The Herman Group, strategic business futurists, predict a new war for talent -- for entry level workers, beginning in the restaurant industry. They cite a current bidding war in Billings, Montana as evidence of this trend:
The situation reported in Billings, Montana, is perhaps an early warning of what recurring conditions will be in the near future. Employers in that community are engaged in a bidding war for workers. Signs posted in store windows and shouting from marquees offer USD $6.50, $7.00, $8.00---and more---per hour, in an effort to attract applicants. Few jobs in this competitive environment pay the USD$5.15 minimum wage.
The competition is most evident in the restaurant industry. McDonald's ($7.00) is in a race with Dairy Queen ($6.50), while the pancake house is paying $8.50 an hour for cooks. Papa John's Pizza advertises $15 per hour income, which includes a $5.15 hourly wage, $1.20 trip fee, and delivery tips. Tips are unpredictable and lower when customers don't hold head-of-household jobs. The Papa John's assistant manager agreed that they had plenty of applicants, but they lose them quicker than they can hire them.
To read more, go to www.hermangroup.com and click on This Week's Trend Altert.
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