At Wonolo, we understand how difficult it can be to staff your business appropriately. With fluctuations in the market, seasonality, and changes in consumer tastes, there are many factors that impact who you need on your team and when you need them. That’s one of the many reasons we started Wonolo. We knew there had to be a better way to provide flexible staffing.
We work with thousands of companies in a variety of cities and industries to connect them with people looking for flexible job opportunities. That means we know what roles companies are looking to fill and the amounts they are paying in certain states. We are sharing that data in our 2020 Payment Guide to help you as you find the right people for the right projects at your own company.
In light of the COVID-19 pandemic, up-to-date pay insights is essential to monitor in order to better understand the overall landscape of work in America. Many businesses have had to furlough or lay off workers in the face on the front lines. Others are raising the amounts they pay workers to account for the heightened risk many face as frontline workers. For example, Target recently announced they will be increasing the minimum wage in all of its U.S. stores to $15/hour as of July 5, 2020. All this competing information may leave business owners confused, wondering what is right for their situation. We hope the payment data included below, and in our full 2020 Payment Guide, will provide some guideposts that can help you figure things out.
Minimum Wage vs. Living Wage
Many people are familiar with minimum wage*, but may not realize that there are myriad state and local laws governing the minimum wage employees receive. Additionally, Wonolo prefers to take into account the living wage* when we provide payment information to our customers. The living wage is an idea developed by economists at MIT — it takes into account factors like location and number of dependents when determining the amount a person would need to have a minimum standard of living.
The living wage calculation was developed by Dr. Amy Glasmeier at MIT to estimate the amount a person needs to earn to meet a minimum standard of living in their area without financial support. For example, in the New York metropolitan area, the living wage for one adult with no dependents is $16.44/hour — slightly higher than the $15/hour minimum wage in New York City, and substantially higher than the $11/hour minimum wage in New Jersey. The wage changes depending upon if somebody lives in a two-earner household and if they have dependents. This makes the living wage more dynamic than the traditional minimum wage.
The living wage can help you determine a fair baseline to offer for any work in your area as well as provide a benchmark for all of the work projects you need completed. While some companies in your area may only be offering the minimum wage, offering a living wage shows your commitment to finding the best talent for your jobs.
Payment Data by Region
In New York, delivery jobs were the most popular type of open role that companies filled using Wonolo, accounting for 40% of the total jobs posted this past year. The average pay offered by Wonolo customers for delivery jobs in New York was $18.78/hour. This was followed closely by fulfillment/warehousing at 37% of jobs posted to Wonolo. The average amount offered for these jobs was $14.80/hour.
The minimum wage in New York (excluding New York City which is $15/hour) is $11.80/hour in 2020 (increasing every year until it reaches $15/hour). The average living wage for the state of New York for a single person with no dependents is $15.56/hour. The living wage is lower than the average amount businesses are offering for delivery jobs, meaning that if you are offering less, you may not be able to find the talent you need.
Wonolo’s customers filled a variety of roles in Atlanta. This past year, a substantial portion (28%) of jobs posted on the Wonolo platform were general labor jobs. The average amount offered by customers for these jobs was $9.81/hour. This was followed closely by fulfillment/warehousing at 24% of positions posted on the Wonolo platform. The average amount offered for these jobs was $12.29/hour. The living wage in Atlanta is $13.62/hour for a single person with no dependents.
The relative majority of jobs posted to Wonolo in Phoenix (40%) were fulfillment/warehousing jobs. The average amount customers offered for these jobs was $13.92/hour. This was followed by general labor jobs, accounting for 23% of the jobs posted to Wonolo. The average amount customers offered for these jobs was $13.24/hour.
The relative majority of jobs posted to Wonolo in Chicago (52%) were fulfillment/warehousing jobs. This is followed by general labor at 28% of the jobs posted to Wonolo. The average amount customers offered for these jobs was $13.99/hour.
The living wage in Chicago is $13.38/hour for a single person with no dependents.
The minimum wage in Chicago is $13/hour (increased in July 2019 from $12/hour), rising to $14/hour in July 2020. Outside of Chicago, Illinois’ minimum wage is $9.25/hour.
To see regional data for New Jersey, Pennsylvania, Houston, Dallas-Fort Worth, and Nashville as well as payment data broken down by industry, please check out our 2020 Payment Guide.
In the current market, it can be difficult to set the right payment amount for the available job opportunities at your company. If you go too low or too high, you may not find the right person for your team, hampering your growth and limiting your ability to do business. We hope this data helps give you insight into pay information for areas your businesses may be operating in.
This piece is one of a series of blog posts aimed at providing general information to the public. To learn more about Wonolo’s mission of helping underserved people find work on their own terms, with jobs that fit their schedule, visit https://www.wonolo.com/. Nothing in this post should be construed as legal advice, if you need legal advice, consult an attorney.
*Living wage and minimum wage are subject to change, these were the wages as of June 2020