With 50% of US states enacting a minimum wage increase, 35% of hiring managers report their companies would increase salaries/wages across the board, not just for minimum wage workers, according to an Express Employment Professionals-Harris Poll survey released today.

The survey also found around three in 10 hiring managers, 31%, would implement more automation/artificial intelligence in response to mandatory wage increases.

However, one in five hiring managers report that they would take more drastic measures, including:

• Reducing workforce, 19%
• Outsourcing more work,17%
• Decreasing the number of hours employees work, 17%

Despite these challenges, 86% of hiring managers believe the minimum wage should increase to keep up with inflation rates, a sentiment shared by 81% of job seekers. Moreover, 51% of hiring managers and 19% of job seekers strongly agree with this statement.

While 76% of job seekers believe minimum wage increases benefit the personal finances of minimum wage workers in the long run, 68% are concerned these workers will face greater job security worries. Additionally, 58% of job seekers would quit their jobs if they found out an entry-level employee and senior-level employee were paid the same following a minimum wage increase.

Sara Delafuente, an Express franchise owner in Oregon, where minimum wage increased to $15.95 on July 1, noted it will likely impact her clients and other businesses in Portland.

“Some may experience higher operating costs, which could lead to price adjustments for their products or services,” Delafuente said in a press release. “However, there may also be positive outcomes, such as increased employee satisfaction and productivity and a boost in consumer spending power, which could benefit businesses in the long run.”

Express’ poll of 1,003 US hiring decision-makers took place between May 16 and June 3. Its poll of job seekers included 1,002 US adults and was conducted between May 28 and June 10.