Employees of businesses who are a part of the ‘real living wage’ scheme will be happy to know that they will have pre-Christmas pay bump!
For them, the UK hourly rate will increase to £9.30 an hour, and in London it will rise to £10.75. This is a big incentive for people looking to work for a company that offers benefits such as this.
In comparison, the mandatory National Living Wage’s hourly rate is just £8.21 for workers aged 25 and over.
The real living wage is calculated every year to meet the real cost of living such as food, clothing and household bills. This increase in pay will be a real treat if you’re one of the many employees of businesses signed up to the scheme.
6,000 of the organisations that have already joined say that they have benefited massively as a result. So why should your business offer a real living wage to your employees, and what’s in it for you?
Everyone wants to ensure their staff are happy at work, as happy employees lead to greater productivity and quality of work for a business. And although a bigger paycheck isn’t the only thing that workers value in their career, it can certainly help.
In a study carried out by Neyber, more than half of UK workers said that their behaviour at work changes when they are under financial pressure. Employee wellbeing can affect workplace performance, so as an employer, it should be your top priority to look after your staff.
By paying your employees the real living wage and ensuring they have fewer worries about money, they will focus more on their tasks at work.
Better Employee Retention
A third of companies that pay their employees a real living wage found that it increased motivation and retention rates for their workers.
When employees are happy and well looked after in their place of work, the less likely they are to leave and look for another job. If more employees are choosing to stay, the company will spend less money on recruitment and hiring for new roles.
By signing up to the scheme, not only will your employees be happier in their job, but you can also reduce the cost your business spends on recruitment!
Reputation in business means everything. It impacts your customers, clients, and contract opportunities. Paying your employees a real living wage can enhance the reputation your company holds as an employer. Nearly 90% of businesses in the real living wage scheme believed that had improved their reputation amongst its workers.
Potential employees will hear and judge your company on the reputation it holds, and they will be enticed to come work for your company if you offer them incentives such as a real living wage.
Stand Out From The Crowd
When it comes to selling your products and services, or recruiting new staff, it’s always important to ensure that you stand out from the crowd. Especially in when it’s such a competitive landscape.
Prospective customers, clients and businesses partners all favour a company that pays its employees fairly. It’s no surprise that 64% of real living wage businesses say that the scheme has made their company stand out from others in the same industry!
When you’re recruiting for new staff, offering the real living wage is a good way to ensure that you attract and hire the best talent to your company.
Cordant People is part of Cordant, the UK’s largest Social Business. We believe in improving society person by person and are committed to ensuring people are given a chance to thrive. To find out more about how we can help you with your recruitment needs, as well as advice on salary information in your region and industry, contact us today!
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