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What is Living Wage, and why is it good for business?

Lily Howell Oct 29, 2019 12:00:00 AM

Netitude is proudly accredited as a Living Wage employer! It is of utmost importance to us that our employee’s hard work and commitment is reflected in what they take home at the end of each month. Allowing them to live well and not paycheck to paycheck. Aside from being the right thing to do, being Living Wage accredited is a smart business decision, and I am here to tell you why.

What is The Real Living Wage?

You may have heard of the ‘national living wage’ brought it in April 2016, where the government introduced a higher minimum wage rate for all staff over 25.

However, what the government’s ‘national living wage’ does not take into consideration, is what employees and their families need to live.

Instead, it is based on a target to reach 60% of median earnings by 2020. Under current forecasts, this means a rise to less than £9 per hour by 2020.

The real Living Wage rates are higher because they are independently calculated based on what people need to get by. This also takes into consideration where they are living.

Image: What is the Real Living Wage?

Looking forward

It is no secret that modern-day slavery is a problem, especially in big cities. As the awareness of Living Wage increases, so does the number of businesses refusing to work with suppliers that are not accredited.

According to The Deloitte Global Millennial Survey, 2019, millennials are committed to supporting companies that align with their values. They would not hesitate to reduce or end a consumer relationship when they disagree with a company’s business practices, values or political leanings. By next year, the UK workforce will be 50% millennial, with many of them stepping into senior roles, that will amount to making key business decisions.

With these facts in mind, it is essential to consider how paying a Living Way may affect the buying decisions of this hugely influential generation.

Image: Good for society

Get what you give

Your business would not exist without the hard work your employees put in. So, if you are paying minimum wage out of legal obligation, what kind of message are you sending to your staff about their worth? By paying the real Living Wage, you are voluntarily taking a stand to ensure your employees can earn a wage that they enjoy life on.

Living Wage accreditation is also a useful recruitment tool for prospective employees. 86% of Living Wage Employers say the accreditation has improved the reputation of their business, and 75% saying it has increased motivation and retention rates for employees. Check out their case studies to see how happier employee’s lead to things like being healthier and therefore taking fewer sick days.

Image: Good for business

With all this food for thought, it is easy to see how beneficial Living Wage is for business. If you are still not sold, take a look at the additional benefits.

Netitude encourages all employers to ensure their employees earn a wage that meets the costs of living. Not just the government minimum.

“We’ve been apart of the Living Wage Foundation for the last 3+ years and have seen the benefits it gives our staff. We are very proud to promote the Living Wage and are keen to see more adopt this standard.” – Adam Harling, Managing Director and Living Wage advocate

“We are a social bunch who enjoy a wide variety of different activities outside of work. Being Living Wage accredited gives us the financial security to make the most of our time off, which means we are ready and motivated to be the best we can be at work.” – Lily Howell, Marketing Executive and Living Wage advocate

“It makes me proud to be able to tell people I work for a Living Wage employer; it’s an attractive quality and makes employees feel valued, in turn lowering absences and staff turnover whilst increasing motivation. By being a part of the Living Wage Tech Champions group I hope we can promote the true cost of living and encourage engagement within the industry.” – Amy Coombes, Assistant to the Directors and Living Wage advocate

So, if you’re ready to become a Living Wage employer, click here to start your journey! Simply fill in the simple online form to apply for your accreditation.