{"id":90651,"date":"2020-01-19T01:47:32","date_gmt":"2020-01-19T01:47:32","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/low-wage-employees-benefit-from-tight-labor-market\/"},"modified":"2020-01-19T01:47:32","modified_gmt":"2020-01-19T01:47:32","slug":"low-wage-employees-benefit-from-tight-labor-market","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/low-wage-employees-benefit-from-tight-labor-market\/","title":{"rendered":"Low-wage employees benefit from tight labor market"},"content":{"rendered":"\n<p><!-- gallery:26985973-6067-4d11-aa07-54cb660b670c --><\/p>\n<p>A booming economy is driving up wages for low-skilled and entry-level jobs across the nation. It\u2019s true in Durango as well, and entry-level and younger workers appear to be the beneficiaries.<\/p>\n<p>\u201cIt\u2019s been very difficult for the last year, two years,\u201d said Kris Oyler, CEO of Peak Food and Beverage, about filling open positions. Peak Food and Beverage operates Steamworks Brewing Co., El Moro Spirits and Tavern and Bird\u2019s.<\/p>\n<p>For 2020, Peak Food and Beverage started paying a $15 starting minimum wage at its three restaurants.<\/p>\n<p>\u201cI heard on Bloomberg Radio that nationally, we\u2019re at some of the fullest employment levels since 1960. Durango typically has a lower unemployment rate than other areas of the state and the country. So, it\u2019s been challenging to find people who are eager and willing to work,\u201d Oyler said.<\/p>\n<p>According to the Colorado Department of Labor, La Plata County\u2019s unemployment rate for November 2019, the latest month for which numbers are available, stood at 2.2%, below the state rate at 2.6%. Colorado also had the fifth-tightest labor market in the country in November 2019. Only Vermont, South Carolina, Utah and North Dakota had lower unemployment rates.<\/p>\n<p>Jeremy Storm, executive chef at The Container of Food at Ska Brewing Co., also is coping with a tight labor market.<\/p>\n<p>\u201cWe\u2019ve been experiencing this for a while. Last summer was the first out of the last four that we were fully staffed in the kitchen. When you do lose people, it\u2019s a challenge to get the position staffed,\u201d he said.<\/p>\n<p>Storm said one issue with the tight labor market is the stress it puts on the remaining staff after someone has departed.<\/p>\n<p>\u201cWe try to avoid overtime, but you really can\u2019t if you\u2019re short staffed, and then you have people who are getting pretty burned out,\u201d he said.<\/p>\n<p>In past years, Ska, typical of many restaurants, might not fill vacant positions at the end of summer. Since 2019, however, Ska has tried to keep its kitchen fully staffed.<\/p>\n<p>\u201cWe\u2019re hanging on to labor in the lean months so we\u2019re staffed and don\u2019t have to rely so much on summer hiring,\u201d Storm said.<\/p>\n<p>Amanda Puett, co-owner of the Loungin\u2019 Lizard in Cortez, also has trouble filling positions.<\/p>\n<p>\u201cWe get a lot of applicants who appear to want to work, but they don\u2019t actually want to when it comes down to it,\u201d she said. \u201cIt\u2019s tough to find people who are qualified, willing to work and available to work odd hours, evenings and nights.\u201d<\/p>\n<p>Larger operations in Durango offer benefits to attract applicants.<\/p>\n<p>Katie Milliet, a server at Ska, said she earns vacation hours even though she\u2019s a part-timer.<\/p>\n<p>Jessica Steenbock, a bartender and sever, touted Ska\u2019s 401(k) plan and health benefits.<\/p>\n<p>\u201cI worked in the same place in Texas for 13 years, and in the restaurant industry in Texas, benefits are unheard of,\u201d she said.<\/p>\n<p>Oyler described the $15 per-hour minimum as \u201ca win-win\u201d for its three restaurants and employees.<\/p>\n<p>\u201cWe treat the employees right, but we also attract more talent,\u201d he said.<\/p>\n<p>Peak\u2019s retention rates are given a boost by its higher minimum wage.<\/p>\n<p>\u201cThe national average for turnover among all restaurants is about 75% annually. We\u2019re at 39% for 2019,\u201d Oyler said. \u201cWe\u2019re almost half of the national average on turnover.\u201d<\/p>\n<p>Like Ska, Steamworks and the two other Peak Food and Beverage restaurants offer benefits.<\/p>\n<p>\u201cOur motto right now is kind of: Hire right, train right and treat right, and if we do all those things, we will reduce our turnover and ultimately be more successful,\u201d Oyler said.<\/p>\n<p>In addition to minimum wage and ownership options, Peak offers an optional health insurance program for employees who work 130 hours per month in a year.<\/p>\n<p>\u201cOf course, everyone knows the cost of health insurance in our area,\u201d said Peak Human Resources Director Lisa Blue. \u201cWe did a great deal of study to figure out how we can help our employees in this regard. As Kris has said, it\u2019s the right thing to do, so we\u2019re happy we can offer a health insurance option to established employees.\u201d<\/p>\n<p>With a good stock market and an economy that doesn\u2019t show signs of faltering, Oyler doesn\u2019t see the tight labor market easing soon. That has kept Peak investing not only in employees but in the infrastructure as well.<\/p>\n<p>He said Peak is reinvesting in facilities and equipment, in part, because that helps retain employees.<\/p>\n<p>\u201cEmployees see: Wow, they\u2019re willing to invest in that equipment, and they\u2019re willing to invest in me, and oftentimes that leads to better job satisfaction and less turnover,\u201d he said.<\/p>\n<p><em class=\"mwc_shirttail\"><a href=\"mailto:parmijo@durangoherald.com\">parmijo@durangoherald.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Benefits, hire wages result of Durango\u2019s unemployment rate at 2.2%<\/p>\n","protected":false},"author":1,"featured_media":90652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[950,13,28,2632,29,450,4549],"naviga_topic":[],"class_list":["post-90651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-durango","tag-frontpage-lead","tag-headlines","tag-labor-market","tag-newsletter","tag-restaurant-and-catering","tag-unemployment"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/90651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=90651"}],"version-history":[{"count":0,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/90651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/90652"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=90651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=90651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=90651"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=90651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}