The Board and staff of alt.Consulting met on the
evening of May 6, 2005 for an informal discussion
about livable wages.
The get-together was designed to spur innovative
thought around this important topic.
Growing businesses that can provide living wage jobs
and build wealth in low-wealth areas is the
cornerstone of alt.Consulting's economic
development mission.
How do you define liveable wages?
A liveable wage job should meet the immediate
family needs, provide health benefits, and include
some opportunity to save and build wealth.
In areas with double digit unemployment, is any job a good job?
The Arkansas/Mississippi Delta includes many
counties that continue to face double digit
unemployment. Entrepreneurs in these communities
do not have the equity needed to invest in
manufacturing or high-tech businesses.
Most entrepreneurs start service or retail businesses.
These sectors traditionally do not include the high
growth and high profit businesses associated with
living wage jobs and basic benefits.
Many businesses do not even provide livable wages
for the owner. In this environment, how realistic are
livable wage jobs?
How can alt.Consulting make a difference?
alt.Consulting works with
entrepreneurs to make their businesses more
profitable in order to position them to one
day increase employee compensation. Higher wages
and benefits have proven to reduce employee
turnover and the high expenses associated with
training and retraining.
For example, a client in rural eastern Arkansas
started his service business with alt.Consulting's
assistance about 4 years ago. As soon as he made a
profit, he called alt.Consulting about providing health
benefits. Together, they worked out a plan and
today his business:
- Employs 18 people in jobs paying $15+ per
hour
- Provides health insurance for all employees
- Has implemented a scholarship program for
employees' children
- Experiences NO employee turnover.
Success stories like this one provide a model
for other entrepreneurs.
What is next?
There were no easy answers to questions raised.
There is a commitment at alt.Consulting to focus on
this issue going forward.
The Board has suggested that staff:
- Dialogue with business owners about the benefits
of paying livable wages,
- Include the goal of livable wages in strategic
planning with clients, and
- Create a financial model that demonstrates when
a business can sustain an increase in wages.
In Appreciation
The staff of alt.Consulting would like to express its
sincere gratitude to the Board of Directors for it's
commitment and contributions to this important
discussion.
About alt.Consulting
Mission
alt.Consulting serves as a catalyst in growing,
sustaining and educating entrepreneurs and their
ventures, resulting in wealth and fair-wage job
creation in minority and rural communities.
Vision
An economically just business environment with equal
access to capital, markets, employee skill building
and management training for rural-based and minority
entrepreneurial businesses.
