Firms paying Real Living Wage to workers say boosting wages is good for business

16 July 2023 , 23:01

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Workers on the Real Living Wage get paid more than the legal pay floor (Image: Getty Images/iStockphoto)

Businesses paying staff the Real Living Wage have backed the scheme as workers are gripped by the cost-of-living crisis.

Research by Cardiff Business School shows 94% of employers signed-up to the voluntary initiative said they benefited from membership.

Bosses cited boosts to recruitment, retention and reputation for accrediting with the Living Wage Foundation. The study comes as the campaign announced it had enrolled 13,000 firms, with luxury hand wash brand Molton Brown and The Perfume Shop becoming the latest signatures.

Living Wage Foundation director Katherine Chapman said: “We are delighted to have reached 13,000 accredited Living Wage Employers across the UK who are committed to making sure that everyone who works for them, including contracted staff like cleaners and security guards, earns a wage that meets the cost of living.

“As households across the country grapple with the biggest income squeeze in a generation, a Real Living Wage has never been more important for workers.

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Living Wage Foundation director Katherine Chapman

“This research from Cardiff Business School makes clear that rewarding staff with a wage that can make ends meet is not only good for workers, it’s good for businesses too.” The minimum, hourly, legal rate for staff aged 23 is £10.42, while the voluntary Real Living Wage is £10.90 an hour for workers of all ages, rising to £11.95 in London.

The Cardiff Business School study shows 87% of Living Wage Employers say paying the Real Living Wage bolstered their general reputation as an employer; 66% said it set their firms apart from others in the same industry; 64% said the initiative improved relations between staff and managers; 62% said it improved recruitment of employees; and 60% said it boosted retention of workers.

Molton Brown at Kao human resources director Carrie Harris said: “We put our people first - ensuring that they feel motivated and supported is very important to us. Implementing the Real Living Wage was about doing the right thing for our people, especially in the current economic climate, but we believe that it is also the right thing for broader society.”

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Ben Glaze