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Preparing your hospitality business for the increase in minimum award wages

With hospitality workers set to get a pay rise from July after the Fair Work Commission (FWC) decided to increase minimum award wages, how can you prepare your business to handle the addition financial requirements.

FWC is raising the minimum award wage by 3.75 percent, effective from the first full pay period starting on or after July 1, 2024.

For the hospitality industry, which is already facing rising costs and tight margins in a tough economic climate, the increase in minimum award wages could put more pressure on the industry.

To keep on track, businesses need to continue to adapt their systems and processes to operate as nimbly as possible. This could include investigating the increasingly important non-monetary incentives that the current generation of team members seek in the workplace.

Businesses should also leverage technology to understand their peak and trough periods to ensure they are optimising rostering and scheduling and using their resources effectively.

Review your staffing needs and budget to identify any gaps and opportunities in your workforce planning so you can address them. For example, it may be time to invest in training and development of your staff to improve their productivity and quality of service.

Consider also the compliance and reporting requirements of the Fair Work Commission You may need to update your payroll and accounting systems to reflect the changes in the minimum award wages and to ensure that you are paying your employees correctly and on time.

It is also imperative to understand the various conditions of the relevant award/s to ensure your business is meeting minimum award standards both from a pay perspective but also the broader award conditions.

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