By Jane Duffy, Business Advisor, Workforce Development Specialist - Bolton
The businesses we support want the same thing, Success and Growth; at the heart of this are their employees.
By paying the Real Living Wage the benefits go beyond just fulfilling an obligation. Firstly, it fosters a positive workplace culture where employees feel valued and respected, leading to higher morale and increased loyalty and productivity.
‘National’ and ‘Real’ Living Wage – What’s the difference?
The real living wage is the only UK wage rate based on the cost of living, it is voluntarily paid by over 15,000 UK businesses. (Source Media - key information and statistics | Living Wage Foundation)
The real living wage is different to the UK government’s National Living Wage. It is calculated according to the basic cost of living in the UK, to put this into context; an employee on the National Living Wage would be over £750 £1092 a year worse off than the real living wage would earn.
The table below outlines the increases in the Minimum wage, National Living Wage, and the Real Living Wage.
Financial challenges?
We acknowledge the cost-of-living crisis and other challenges businesses currently face, so if cost is a concern, many businesses demonstrate value for staff in other ways such as reward and recognition, professional development opportunities, fostering teamwork through team-building activities, empowering employees in decision-making, flexible work opportunities and promoting work life balance.
Let’s be real.
Frankly speaking, undervalued staff significantly impact and cause potential long-term losses through losing staff (who may have had lots of investment in upskilling) high absence rates or lack of productivity, unhappy staff can also create a toxic work culture which can have severe ripple effects.
Is it worth it? Just a few examples…...
Employee Wellbeing and Productivity; Staff that are paid a wage that meets the cost of living leads to improved financial security and reduced stress.
Business Reputation and Customer perception; Cardiff Business School found that 93% of Living Wage-accredited companies saw improvements in recruitment, retention, and productivity.
Workforce Stability: Fair Wages contribute to higher employee satisfaction, which can reduce staff turnover and associated costs in recruiting and training new employees.
What now?
The Leadership, Skills and Social Impact team can support business with a plan to paying the real living wage, and imagine what kind of impact you would be making if you paid that extra amount, voluntarily to their salary? A profound sense of dignity, security, and appreciation. It goes beyond just receiving a pay slip; it validates their worth and acknowledges the value of their work.
Get in touch
Please contact us at 0161 3593050 or query below.
Take that first step and we’ll support you with whatever you need to succeed.
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