Washington DC has one of the highest cost of living nationally, requiring a $67,867 annual salary. Unfortunately, a huge portion of the population lives on an hourly wage that equates to $45,080 annual salary. That’s over a $20k gap between livable wage and actual pay. It’s not just DC that has this issue. California recently attempted to compensate the difference between cost of living and pay by upping the minimum hourly rate to $13/hr for companies with less than 26 employees, and $14/hr for companies with more than 26 employees. Washington state has a similar initiative, with increases in 2022 to $14.49/hr.
Unfortunately, though CA and WA state provide some of the higher minimum wage rates nationally, they are a far cry from what, on average, is considered a livable wage. The median living wage across the entire US is $67,690 annual pay, and $14/hr just doesn’t cut it. The stress impacts of disparages between pay and cost of living, are dire. In fact, the effects of living in poverty on children can be long term dysregulation of physiological properties, and a reduction in cognitive performance and psychological well being. Poverty and wage gaps are not just financial crisis’, these issues are human health hazards effecting entire generations.
Addressing and solving social issues like earning a livable wage, family leave, and adequate health coverage are becoming privatized. Credova, a buy now, pay later provider that specializes in outdoor recreation, recently announced a new initiative. “We want to be part of the solution, and believe in supporting our employees by providing an actual livable wage,” says Dusty Wunderlich, Credova CEO. “The minimum salary of any full-time employee at Credova is $75,000,” continues Wunderlich. “We value our employees, their families, and want to support them throughout their experience working with our company.”
In a “Great Resignation” era, initiatives like Credova’s “$75k starting pay” may be seen more and more. “It’s a job seekers market right now, and companies like ours stand out as attractive because of our culture, our mission, and initiatives like the “$75k starting pay”,” says Wunderlich. “Our hiring staff has seen excitement around this initiative, as they’ve been diligently working to fill multiple positions.”
Companies tackling social issues is not a new trend, but it is a trend not going away any time soon, as pay gap stratification continues.
