Bike shop says paying living wage improved business
Posted Dec 4, 2022 05:44:00 PM.
One year ago, Halifax bike store Cyclesmith began paying their employees a living wage, today they say business is booming.
“It's already paid off in spades,” Cyclesmith owner Andrew Feenstra told CityNews Halifax.
The living wage is calculated annually by the Canadian Center for Policy Alternatives. It is the amount of money someone would have to make hourly to afford a comfortable life in a given area.
When Cyclesmith began doing this, Policy Alternatives calculated the living wage for Halifax to be $21.80/hour.
That wage has now been bumped up to $23.50, and Cyclesmith has raised its wages to meet that number.
“Ultimately, it’s the right thing to do,” said Feenstra.
Minimum wage in Nova Scotia is $13.60 an hour, almost ten dollars below what Policy Alternatives says is necessary.
But Feenstra says it’s more than just kindness, he says the move is also good for business.
“We have to look at things differently. Our markets are changing.”
Feenstra says in the past year, he spent almost a quarter of a million dollars on staff wages, but the payoff has well made up for the expense.
“We’re retaining staff longer. There were people who were considering leaving and now that we’ve been paying minimum wage they’re still there,” says Feenstra.
“So all of a sudden, training costs have gone down because I don't have a revolving door.”
He adds employees are energized to work there, and it’s lead to more sales
“My customers are getting better service because the staff are being taken care of.”
The report from Policy Alternatives on the latest living wage proposes higher wages would be good for society, the economy, and business.
The report from September reads: “there is mounting evidence of the benefits to employers of paying a living wage, e.g., higher retention rates, fewer sick days, better work quality, and productivity increases.”
With rising inflation and cost of living increases, the report says bringing up wages is more relevant than ever.
“Dealing with cost increases is possible if your income is keeping up. That is not the case for the average worker in Nova Scotia.”
