The Average Wage Rates at McDonald’s in Arizona: Factors, Comparisons, and Strategies
In today’s economy, it’s important for people to know what they’re getting paid to live comfortably, particularly in service industries. One establishment where people often begin their careers or part-time employment is McDonald’s, an American fast-food chain. In this article, we’ll explore the average wage at McDonald’s in Arizona, including the factors that affect it, how it compares to other states, and possible strategies for increasing your compensation.
Arizona’s Minimum Wage
The first consideration for determining McDonald’s pay rates in Arizona is the state’s minimum wage, as nearly half of all McDonald’s workers, according to one study, earn at or near minimum wage. The minimum wage in Arizona was notably raised twice over the past few years, with the most recent upping it to $12/hour as of January 1, 2020 – this is significantly higher than the federal minimum wage of $7.25 – which has been in effect since 2009. The next scheduled raise to Arizona’s minimum wage, on January 1, 2021, will be to $12.15/hour. While some states’ minimum wages follow the federal rate, others have set their own often higher minimum wages as well.
Average Wage Rates at McDonald’s
According to Glassdoor, the average base pay for a crew member at McDonald’s in Arizona is roughly $11.5 an hour, with an additional $1.5 to $2.5 hourly for tips. Team members are employed at various wages, but a significant chunk of them work at just the minimum wage. When sharing how much McDonald’s pays, assistant managers will explain that precise wage rates differ between positions, but the general salary range for workers is between $8.5 to $17 per hour. Additionally, compensation is paid weekly and employees qualify for tuition assistance after 90 calendar days of working 15 hours per week.
The Internal Factors
When it comes to the factors that impact McDonald’s wage rates at the franchise level, several variables come into play. Policies differ by franchise, and individual units’ financial performance vs. their staff sizes. The more cash flow the franchise sees, the more likely they will be able to offer higher benefits, and a greater number of hours to workers. There is also the factor of the McDonald’s pay grading scheme, where workers can advance their salary based on competency, performance, and initiative. In 2018, the fast food chain raised the hourly pay at more than 650 of its U.S. stores as part of an ongoing effort to “invest in our people and their future.” Additionally, In 2019, McDonald’s raised pay rates at over 1,000 of its U.S. locations to $10 or more per hour.
The External Factors
On a larger scale, McDonald’s wages in Arizona are influenced by several factors outside of the company. Key external factors include Arizona’s cost of living relative to nearby states, the availability of labor, and the local economy in and around each McDonald’s franchise. A higher cost of living would typically require a higher minimum wage, while high availability rates, a low cost of living, or lower local earnings may represent less or inadequate financial incentives for the employer to offer more profitable, competitive rates. Although these external factors can be partially accounted for, they remain beyond the control of McDonald’s itself.
Comparing Arizona’s Average Wage Rates to Other States
Glassdoor study reports that the average McDonald’s crew member pay in Arizona, roughly $11.5 per hour, was slightly below the national average of $12.0. But before making such conclusions, it is necessary to research how wages differ by region and compare similarly situated states. While it is above the federal minimum wage, Arizona’s rates are lower than in other states with higher minimum wages, such as California, where the minimum wage is currently $13 per hour, and even New York, where the minimum wage recently increased to $15.00 or $15.75.
Strategies for Boosting Your Wages
To increase your wages at McDonald’s, get a promotion to a higher-paid position or request a raise from your supervisor or manager. Another option is to try to find another job or franchise with higher paying rates. There are many debates about the relationship between fair wages and cost of living. The prospective employee has the option of matching employment opportunities to their economic needs.
Conclusion
McDonald’s wages in Arizona, while above the federally mandated minimum, still fall marginally below average. We wished to take a comprehensive look at the average wage rates in McDonald’s to understand how they are determined and impacted by various factors. While minimum wage policies affect base rates, the company’s grading scheme, availability of cash-flow, local economic conditions, and competitiveness within the wider marketplace also play a critical role. These external factors all intertwine to create the current pay rates in Arizona. While some improvements in wage rates have been made, struggling adjusted income rates and the desire to improve working conditions and wages raise many lively and controversial conversations around the subject.
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