As a business owner, you are acutely aware of the importance of making sure your employees are adequately compensated for their labor. Prevailing wages are the industry standards in your area regarding fair payment for your workers. Besides just being in compliance with the guidelines of the federal government, there are many practical benefits of these laws.
Support for Labor Union Gains
Prevailing wage laws such as the Davis-Bacon Act act as a support for union progress. When the workers' union achieves better compensation on their behalf, prevailing wage requirements back them up by not allowing companies to just replace them with people who are willing to work for less. A set standard across the industry makes progress the new rule.
Fair Competition
Prevailing wage determination also helps you as the employer. You can comply with what the programs require without having to worry about another business owner outbidding you on an important project because he or she pays workers less than you do. Competition within the industry is based on competence and the quality of work you bring to the table rather than who can complete the job for the least amount of money. These laws keep you on equal ground.
Better Worker Satisfaction
Finally, you can expect better worker satisfaction and engagement when their compensation is guaranteed by prevailing wage rates. Standardization reduces the salary gap between races and genders, leading to greater equity across the board. When they can expect a livable wage and adequate benefits, they can focus more on the job at hand than having to worry about what else they're going to have to do to make ends meet. It's easier to keep employees engaged when you pay them what their labor is worth.
Prevailing Wage Consulting offers training, labor cost analysis, project review, and other services to help you reap these benefits. To ensure that you are in compliance with the Davis-Bacon Act and other similar legislation, contact us to set up a session today.
