If business is to restore trust it needs to look after the welfare of its staff. The minimum wage simply does not pay enough for families to live on.
An increasing number of our clients have already taken the initiative to become accredited Living Wage employers – committing to paying their direct and supplier employees the appropriate geographical Living Wage rate.
Staff working in service industries such as cleaning or catering, typically benefit the most from receiving the Living Wage. But buyers are often reluctant to pay above the minimum wage due to pressures to procure only on labour cost rather than considering the value of the service being procured.
The requirement to also pay supplier staff the Living Wage requires a proactive attitude towards procurement of contracts – considering overall contract value and quality of service as opposed to only considering ‘spreadsheet cost’ of hourly pay.
If customers consider what they want their contractors to deliver rather than how many hours they will purchase, they would be able to identify a contractor that delivers a quality service while also ensuring staff are appropriately paid.
Here are our top 5 reasons to pay the Voluntary Living Wage:
Better performance and engagement
Employees receiving the Living Wage demonstrate higher motivation and perform better. An independent study found more than 80% of London Living Wage employers believe paying the Living Wage had improved their staff’s quality of work. We have seen this here at Calabash Group that paying our staff better means they take extra pride in their roles.
Happier Staff with a Higher Sense of Morale
Living Wage staff are happier and more motivated, because earning more means they do not have to work additional hours. This positive impact on their work-life balance, means there is generally a higher sense of morale at work. Many of our Voluntary Living Wage cleaners believe morale is high at work due to feeling like their pay rate reflects how much themselves and their work is appreciated.
The same study found absenteeism fell by around 25% in Living Wage employees.
Reduced Staff Turnover
Two thirds of Living Wage employers found paying the Living Wage reduced staff turnover. Reduced staff turnover means you have a regular set of cleaners who get to know your site properly. This results in a better service.
Paying the Voluntary Living Wage is the right thing to do
Unlike the government’s National Living Wage, the Voluntary Living Wage is calculated based on the minimum amount needed to enjoy a decent life. Therefore, paying it and promoting its benefits goes further to make sure that everyone in society can enjoy a more comfortable life.
At Calabash Group we believe that everyone should have the right to a good standard of living, which is why we continue to promote and champion the Living Wage.