Question about local businesses

[The Messenger]

I am new to the area and I have noticed something very interesting about companies here. I have seen job postings asking for applicants with a four year degree, 5+ years experience in marketing, management, sales, etc, and then offering $10/hour. I'm not talking about seasonal work either. This is very confusing to me. I am from the midwest which is not a high income area, but these wages would never secure a long term qualified candidate. I hear people that own their own businesses bragging about it being very profitable here. Not everyone, but many I've met so far. If there is so much money to be made, then why are the wages so low? I understand offering this to an entry level employee, but when you are requiring qualifications someone has spent years gaining, how is that worth $10/ hour (or so)? How can people afford to live in this area making that kind of salary? Is there no where a person can make a wage that is indicative of the experience they have? I assume it is no coincidence that I see the same positions advertised over and over again. It's hard to be happy with a job when you are struggling financially. Maybe I'm missing something. Can anyone shed some light on this?

As a side note, I owned my own company for many years. I understand income and expenses quite well, so I know payroll can be a huge drain on a business, but if you are hiring the right people, it is worth it. An even bigger expense is having to continuously hire and train new people for the same position because you have high employee turnover.

 

[BeachRob]

well...

 

[Kurt]

I am new to the area and I have noticed something very interesting about companies here. I have seen job postings asking for applicants with a four year degree, 5+ years experience in marketing, management, sales, etc, and then offering $10/hour. I'm not talking about seasonal work either. This is very confusing to me. I am from the midwest which is not a high income area, but these wages would never secure a long term qualified candidate. I hear people that own their own businesses bragging about it being very profitable here. Not everyone, but many I've met so far. If there is so much money to be made, then why are the wages so low? I understand offering this to an entry level employee, but when you are requiring qualifications someone has spent years gaining, how is that worth $10/ hour (or so)? How can people afford to live in this area making that kind of salary? Is there no where a person can make a wage that is indicative of the experience they have? I assume it is no coincidence that I see the same positions advertised over and over again. It's hard to be happy with a job when you are struggling financially. Maybe I'm missing something. Can anyone shed some light on this?

As a side note, I owned my own company for many years. I understand income and expenses quite well, so I know payroll can be a huge drain on a business, but if you are hiring the right people, it is worth it. An even bigger expense is having to continuously hire and train new people for the same position because you have high employee turnover.

Indeed! There are a lot of low wage jobs in SoWal. I think Florida, especially beach communities, historically have lower wages than many areas of the country because of people's desire to live here. And maybe the absence of a State income tax.

 

[poppy]

Simple greed. There is no shortage of people willing to work, just a shortage of "job creators" willing to pay a living wage. Local businesses want locals to support them but it works both ways. Pay decent wages to locals and watch your business grow.

 

[Zebraspots]

A lack of state income tax doesn't make a real difference in your budget when you are in a low income bracket and have a high cost of living.

 

[poppy]

Lower taxes is no excuse for paying crap wages. A state with no income tax doesn't equate to a lower cost of living. The revenue is collected through a variety of other taxes.

 

[Leader of the Banned]

This might be a desirable area, but you can't pay the bills with the sand between your toes.

 

[BeachRob]

 

[The Messenger]

As far as the state tax thing goes, it's negligible. The average state tax in the US is around 3%. If you make $20k/year ($10/hour), that's only an extra $11.50 a week. That's not enough to change a lifestyle. Don't get me wrong, I am extremely happy to be here. My family and I have been planning this move for a couple years and SoWal is where we absolutely want to be. There are just a few things here, this being one of them, that I don't get. If one business were to take the leap of faith and offer better wages, they would most likely steal the best talent down here, and then maybe other business would follow suit. My wife and I have discussed opening a similar business to the one we used to own. Maybe we will figure out a way to try and start the trend. Who knows? I'm not saying we can change the entire business community here, but if we can have an impact on just a few lives, it's worth not buying that fancier car, or more expensive furniture. That's why we moved here in the first place. To minimize and simplify. Isn't that what the beach life is all about?

 

[tsutcli]

Part of the problem,at least as it applies to the hospitality industry, is the importation of labor from overseas through companies who contract with the resorts. It goes without saying their wages are very low, which works against the usual supply/demand using only locals.