Across industries there is a constant push to attract and retain talent. However, what is often forgotten is that employees are not just looking for job satisfaction or career development but also for financial security – with failure to provide this usually leading to high turnover rates and ultimately a poor working environment. Implementing a Living Wage isn’t just the right thing to do from an ethical point of view – it can help businesses retain their best performers by ensuring they have the financial means necessary to sustain their lifestyle and provide for their families’ needs.
Engaging and retaining talent through your business’ culture and values
One of the most important things prospective candidates will take into account when deciding whether or not to join an organisation is its culture and values. A business that aligns its values with those of its employees is more likely to retain talent in the long term, owing to colleagues feeling that their beliefs are heard and supported. This is a worthwhile endeavour for employers as it means less turnover and greater productivity from staff who are happy in their roles.
One way that this can be achieved is by committing to pay employees a Living Wage – recognising the impact that dealing with the stress of financial struggles can have on colleagues, both in and outside of the workplace.
What is the Living Wage?
The real Living Wage is a voluntary rate of pay that's designed to reflect the actual cost of living in Britain. A voluntary contribution, it is higher than both the National Minimum Wage and the National Living Wage, which are set by the government and apply to all workers aged 21 or over. It's calculated by the Living Wage Foundation, an independent body that monitors living costs and sets out what people need to earn in order to meet their basic needs, and it starts from the age of 18.
The real Living Wage is calculated based on actual living costs, so unlike a regular salary it isn't determined by how much someone currently earns - instead it's based on how much money they need to live comfortably without relying on government benefit payments. And it’s already been adopted by over 13,000 employers across the UK, including some of the country's biggest brands.
The advantages of paying a Living Wage are clear - it reduces staff turnover and attracts better quality candidates in the first place. It's also been proven to improve productivity, morale and business reputation. It's a simple but powerful message that will resonate with your staff, clients and the wider community.
Looking ahead to Living Wage Week
As individuals across the UK are forced to continue tackling the challenges of rising energy bills and the weekly shop increasing, it’s more important than ever to ensure that they are paid a fair and manageable wage. To that end, this week the Living Wage Foundation has announced its updated Living Wage rates for 2023/24, a 10% increase that will benefit over 460,000 workers whose employers have signed up to the campaign – a vital cost-of-living pay boost to help them contend with rising prices.
It’s a great time to show your support for the movement, with the annual Living Wage Week celebrations also on the horizon from the 6th – 13th November, where you’ll see plenty of other Living Wage Employers doing their part to raise awareness around the scheme and demonstrate why it’s more important than ever to talk about its benefits.
The Living Wage is a valuable tool for businesses looking to attract and retain high-quality staff. It's also a great way of showing your commitment to ethical business practices, which can help build trust with customers and clients. To find out more about how it works, visit the Living Wage Foundation’s website to learn more about the campaign.