Worcester Business Journal

8 Worcester Business Journal | February 20, 2017 | wbjournal.com P ia Rogers, owner of the Sturbridge Coffee House, said she appreciates her employees, and she wants to make sure they make a good living. But she finds that balancing the need to pay well while also keeping her small business strong can be tricky. As the state minimum wage has risen over the past three years, Rogers had to find more than $10,000 a year to pay for her growing employee costs, and lately she's been forced to raise prices – something she's taken pains to be open about with her customers. "We explain to them that [the minimum wage] has gone up for the third time in three years," she said. An employees market Wages in Worcester County have been slowly ticking up, rising 3.4 per- cent between the second quarter of 2015 and the same period last year, to an average of $992 a week, according to the U.S. Bureau of Labor Statistics. Between the rising minimum wage and increasing competition in a tightening labor market, employers are finding they need to find ways to pay more. "They know if they want to get good employees that are motivated and have them stay, it's kind of an employees' market right now," said Timothy Murray, president and CEO of the Worcester Regional Chamber of Commerce. "Good workers, both in terms of the special- ized skills they have, or just in terms of soft skills, are at a premium." Murray said higher wages boost the local economy as workers spend more money, but it can be tough on employers. David Crouch, president of Worcester software devel- opment company ten24 Digital Solutions, has been dealing with this issue for longer than many local busi- ness leaders. Unlike many industries, software never saw wages level off or drop during the Great Recession. "It's a highly competitive market, so we're up against people … across the country who are paying top dollar and The perils of pay raises A rising wage in Worcester County is good news, with some complications David Crouch, president, ten24 Digital Solutions top benefits," Crouch said. A little over two years ago, ten24 moved from Northborough to Worcester in an effort to recruit talent- ed young employees. That worked out well, Crouch said, but competing with high-paying firms demands some thought about what the company can offer workers. "We're super flexible with things like vacations and work from home," he BY LIVIA GERSHON Worcester Business Journal Staff Writer said. "We understand they're not going to be making the same kind of wage they could make if they went to California or Boston, but we're going to be providing them opportunities where they can make a big impact and learn and help the firm grow." That's been enough to succeed in recruiting the two or three new people the company adds each year, Crouch said, and the people who do sign on seem to like what ten24 has to offer them. "Since we moved two years ago, we haven't had anybody leave, which is a good thing," he said. Workforce costs vary by industry Worcester County wages by major industry (Q2 2016) Construction Manufacturing Wholesale trade Retail trade Transportation and warehousing Finance and insurance Professional and technical services Administrative and waste services Private educational services Health care and social assistance Accommodation and food services Other services, except public administration Local government education AVERAGE WEEKLY WAGE $1,154 $1,425 $1,314 $566 $788 $1,543 $1,533 $703 $916 $918 $356 $603 $1,122 Source: BLS QCEW. Note: All sectors except education reflect private employment. Figures provided only for sectors with 10,000+ employees Employers like ten24 Digital Solutions in Worcester have to be creative in employee benefits to compete for quality workforce in high-paying industries. P H O T O / C O U R T E S Y

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