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By Catherine Conlan 
Monster.com, December 6, 2015

The recession took a toll on businesses of all sizes and dampened salary levels as well. But as businesses have rebounded, so have compensation expectations for employees at small businesses, says Jose Laurel, director of recruitment services for G&A Partners, a human resources services provider in Houston. ...

The insights below will help your small business as you set 2016 salary levels. ...

Ripple Effects from an Increased Minimum Wage

The debate over an increased minimum wage, while often focused on large employers, affects small businesses as well, experts say. 

Small companies that set entry-level wages below $10 will feel pressure to raise wages as more large companies such as Walmart, the Gap, TJX, Ikea and McDonald’s phase in increases in through  2016, says Holly Sklar, CEO of the advocacy group Business for a Fair Minimum Wage

“The push for higher minimum wage will be very strong in 2016 as efforts to raise the Federal minimum wage continue and more states and cities consider increases through legislation and ballot measures.” ...

On the positive side, a higher minimum wage, whether your small business employs minimum-wage employees or not, is increased worker buying power. Sklar cites the reason why. “Workers are also customers. Minimum wage increases boost sales at local businesses as workers buy goods and services they could not afford before.” 

While small businesses have been worried about weak consumer demand since the recession, 2016 minimum wage increases could provide an important boost to consumer demand and the local economy, says Sklar. ...

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