Is your business ready for the new playing field?
Higher minimum wage
How Canada’s changing minimum wage impacts business profitability
Recent legislative changes raising the minimum wage in Canadian provinces pose a significant profitability challenge to all business as operating costs increase and margins erode. To remain competitive and thrive in this new environment, companies must address the effects of rising labour costs by proactively engaging in a thorough analysis of all facets of their business operations. Business leaders must take a critical look at their current operating practices and business models to identify opportunities and changes that can be made within their control that maintain or improve profitability.
Positioning your business for sustainable profit growth
In response to these changes, many organizations are now prioritizing performance enhancement initiatives to drive profits, including increased investment in technology and automation. Leading companies have adopted the following performance enhancement best practices to ensure that the rising wage floor doesn’t impact current and future profitability. Consider how your organization could benefit from these strategies:
- Calculate wage increase and analyze current business model and long-term forecast
- Establish a cost reduction plan
- Re-engineer business processes
- Implement labour optimization initiatives
- Analyze customer, target market, and product profitability
- Assess automation, technology, and AI opportunities
When improving value is imperative
Deloitte’s Performance Enhancement Advisory practice helps clients create value by taking a hands-on approach to identifying and mitigating high-impact situations, turning them into opportunities to drive performance improvements that rapidly deliver EBITDA growth and sustainable cash flow through our Performance Improvement and Turnaround (PIT) program.