The Impact of Illinois' $15 Minimum Wage on Businesses and What It Means for Employee Retention

February 13, 2025

As of January 1, 2025, Illinois’ minimum wage has increased to $15 per hour, one of the highest in the Midwest. This change has significant implications for businesses in Illinois and those in nearby states like Iowa, where the wage gap could prompt employees to seek higher-paying jobs across state lines.


How Illinois’ $15 Minimum Wage Affects Local Businesses

For Illinois businesses, the wage increase means higher labor costs, especially for entry-level roles. Companies that haven’t adjusted their compensation will face difficulties attracting and retaining workers. Those with high turnover or roles traditionally paid near minimum wage—like retail, food service, and manufacturing—will feel this impact most.

  • Increased Labor Costs: Businesses will see higher payroll expenses, which could lead to price hikes, cuts in other areas, or absorbed costs.
  • Competition for Talent: To attract top workers, businesses will need to offer competitive wages. Failing to do so could result in losing skilled employees to companies that offer better compensation.


The Ripple Effect: How Iowa Businesses Are Affected

Iowa businesses, especially those near the Illinois border, will also feel the wage increase.  Iowa employers may find themselves competing for talent with Illinois-based businesses offering better pay.


How the Minimum Wage Increase Impacts Employee Culture

  • Positive Morale Boost: Employees earning more than $15/hr. (which is now minimum wage) may feel more valued, leading to higher morale and productivity.
  • Elevated Expectations: With the increase in pay, employees may expect more in terms of career development and job responsibilities. Businesses must balance wage increases with additional opportunities for growth and recognition.
  • Pressure on Employers: Employers will need to manage the rising wage expectations while maintaining a sustainable business model.


What This Means for Your Business

As Illinois’ wage floor rises, businesses must adjust to stay competitive. To meet this challenge:

  • Reevaluate Your Pay Scale: Ensure your wages are competitive to attract and retain top talent.
  • Focus on Retention: Foster a supportive, growth-oriented work environment to keep employees engaged.
  • Stay Informed: Understand how wage changes in Illinois and neighboring areas impact your competition and staffing strategy.


How This Affects Your Business? For Businesses Already in Higher Wage Markets

While Illinois has increased its minimum wage to $15 per hour, some markets already operate with higher wage floors due to regional cost-of-living adjustments, such as California. For example, areas with higher living costs, like certain urban centers, may have already implemented a minimum wage above $15 per hour, and these wages may continue to rise in the future. If you operate in such a market, it’s important to:

  • Stay informed about local wage laws and any future increases, as some cities or regions may have higher wage requirements than the state minimum.
  • Reevaluate your pay scale to ensure competitiveness, especially as the cost of living continues to influence employee expectations for compensation.
  • Consider additional benefits, professional development opportunities, and retention strategies to keep your workforce engaged and motivated in these higher-wage environments.


How Sedona Staffing Can Help

As you adapt to these changes, Sedona Staffing is here to help. We can connect you with top talent, provide insights into competitive compensation, and help you fill roles quickly and effectively. With over 36 years of experience, we understand the local market and can guide you through these transitions to ensure your business stays ahead.



By Brett Barr June 3, 2025
Gen Z's Unexpected Office Comeback
May 21, 2025
As caps fly and tassels turn, a new wave of job seekers is entering the workforce. Each spring, thousands of high school and college graduates step into the labor market—eager, anxious, and full of potential. For employers across the Midwest and beyond, this season marks a prime opportunity to attract fresh talent. But tapping into the energy of Gen Z workers requires more than just “help wanted” signs and competitive pay. To succeed in recruiting and retaining these graduates, it’s crucial to understand what young professionals are looking for—and how your workplace can evolve to meet their expectations. 🎓 Who Are Today’s Graduates? Today's young job seekers—mostly Gen Z (born between 1997–2012)—have lived through a global pandemic, social upheaval, and a rapidly shifting labor market. They're digital natives, socially conscious, and value-driven. They're also discerning job seekers, often weighing culture, flexibility, and purpose as heavily as compensation. 💼 What Are Young Workers Looking For in Employment? Here’s what we’re seeing at Sedona Staffing when we talk with high school and college grads across Illinois, Iowa, and California: Flexibility & Work-Life Balance Many young employees prioritize schedules that support their lifestyle, mental health, or continuing education. Even for hourly roles, flexible shift options or understanding management can make a big difference. Clear Growth Paths Career progression doesn’t need to mean instant promotions—but they do want to see what comes next. Employers who outline training, development, or promotion pathways retain young talent far better than those who don’t. Positive Workplace Culture A respectful, inclusive, and purpose-driven environment matters deeply. Toxicity or indifference is a deal-breaker. Gen Z craves workplaces where they feel valued, not just used. Frequent Communication & Feedback Younger workers expect clear instructions, regular check-ins, and feedback—both positive and constructive. Silent management often leads to disengagement and ghosting. Meaningful Work Even in entry-level roles, young talent wants to understand how their job contributes to a bigger picture. They value authenticity and mission alignment, even in small ways. 📉 The Cost of Misalignment Employers who ignore these preferences often experience high turnover, missed shifts, and poor retention. According to recent studies, Gen Z turnover costs U.S. businesses over $50 billion annually—much of which can be mitigated with more intentional onboarding, culture-building, and communication. 🤝 How Sedona Staffing Can Help You Bridge the Gap At Sedona, we understand that staffing today isn’t just about filling seats—it’s about matching the right people to the right environments. Here’s how we can help employers adapt to the needs of today’s emerging workforce: Candidate Insight & Screening We spend time understanding what motivates each candidate so we can align them with your business’s culture, not just the job description. Flexible Staffing Models From temp-to-hire to direct placement, we help you find and onboard young talent at a pace and commitment level that works for both parties. Retention Support We share real-time feedback from workers and offer strategies to improve retention, attendance, and engagement. Onboarding & Soft Skill Coaching We help prepare candidates to meet your expectations—and help you understand theirs—so there are fewer surprises and more successful placements. 🧭 Navigating the New Workforce—Together The influx of new graduates into the labor market offers immense opportunity—but only for employers who are ready to meet young talent where they are. Let Sedona Staffing be your guide. From onboarding strategy to cultural alignment, we help bridge the gap between generations and make your workforce stronger, more adaptable, and more committed. Ready to welcome the Class of 2025 into your workforce?  Let’s build a team they want to be a part of. Contact your local Sedona office to get started.