R Mitchell
Wages are local to regional. While you may be paying low wages, they may be in line for the area you live in. Some rural areas have wages which are quite low because of the local economy. Her in West Texas the ag shops only can pay 11-12 per hour. A 1/4 a$$ welder can make 18-20 just passing a pee test in the oilfield welding structural. You are going to have to call some local/regional competition and ask them what they pay. Also contact your state employment commision for ranges for your industry. I am going to guess you should be in the 18-22 range, but that is a WAG. That is $36,500 on the low side and $44,600 wages on the high end. With a 35% overhead you are looking at $56,100 low to $68,600 high. Can your margins support that or can you raise your prices to cover those wages.
If you are the only game in town, and there is no pricing support then you are about right. Typical wage increases this year in the welding industry is 4-5%. Again, can your company support an increase greater than the norm?
You are going to have to make some phone calls to back up your reasoning. Is one of your competition advertising for help. Do they post their wages? My experience with the HR types is they get into HR because they are too lazy to steal. Your HR people should be able to give you a printout of local average wages for your industry, state and region.
Check out this site:
http://ded.mo.gov/researchandplanning/occupations/oeswage/?soc=514121This is put out by the Missouri Department of Economic Development.
Mean wages is 12.11 to 17.66
Entry is 8.97 to 11.55
Experienced is 13.05 to 20.75
This is off the state web site. In your area this may or may not be in line. But you cannot compare rural Northeast Missouri with St Louis or Chicago or the oil patch of Texas.
I would love to tell you give your guys a raise. But if it puts your company out of business, then you have not done anybody a favor.
BABRT's