Becoming a Living Wage Employer

Transcription

1 Becoming a Living Wage Employer Heart of the City November

2 Introduction to the Living Wage Introduction Being a Living Wage employer is good for your staff, good for your business and good for society. By paying the real Living Wage, employers are ensuring that their staff can earn a wage which is enough to live on. Becoming an accredited Living Wage employer demonstrates commitment to the Living Wage and being a responsible business. This short guide shares information from the Living Wage Foundation on what the current real Living Wage is, the benefits of being a Living Wage employer and the next steps to becoming accredited. 2

3 Living Wage what is it? What is the living wage? The real Living Wage is an hourly rate set independently by the Living Wage Foundation. It s updated annually and calculated according to the basic cost of living in the UK. It s voluntarily paid by over 3,500 UK businesses who believe their staff deserve a fair day s pay for a hard day s work. How much is it? The UK Living Wage for outside of London is 8.75 per hour. The London Living Wage is currently per hour, significantly higher than the statutory minimum wage. (Rates correct as of November 2017) An annual living wage salary is calculated by: LW x hours worked per week x 52 Example: London Living Wage annual salary x 37.5 x 52 = 19,890 3

4 What are the benefits for business and employees? The Living Wage is a voluntary higher rate of base pay. It provides a benchmark for responsible employers who choose to pay their employees a wage that meets the basic cost of living in the UK and London. There are over 3,500 accredited Living Wage employers including 1/3 of the FTSE 100. What does paying the living wage do for your business? Enhances the organisation s reputation as an employer Increases motivation and retention rates for employees Differentiates the organisation from others in the same industry Improves relations between managers and their staff Improves recruitment What does it mean for your employees? Earning the real living wage means being able to earn a wage you can live on Spending more quality time with family Saving a little for an emergency or rainy day Not having to worry about affording the basics 4

5 What are the benefits for business and employees? Being a Living Wage Employer is a natural extension of our values and mission: to support the delivery of social impact. By paying our staff a wage reflective of today s cost of living, we help make their lives outside of the office a little easier. And committing ourselves to valuing our employees reflects our ambition to be a great employee owned business. Peter Holland Chief Executive, OPM Group OPM Group is an independent employee-owned research and consultancy organisation and a Heart of the City 2017 Newcomer programme member. They became an accredited Living Wage employer in

6 The journey to becoming an accredited living wage employer What do I need to do to become accredited? Pay the real living wage to all of your directly employed staff Have a plan to pay your on-site contractors a living wage Complete the Living Wage Foundation s application form How to persuade your senior leader Communicate the business benefits The living wage website has great case studies showcasing the positive effects e.g. improved staff engagement and motivation, improved public image etc. There are toolkits available to make the accreditation process a smooth transition and less time consuming The journey to accreditation Costs start at 60 per year for those with fewer than 10 employees but vary according to the size of your organisation If all directly employed and contracted staff (cleaners, caterers and security) are paid the living wage, complete the accreditation license and the license will be processed in 10 working days Directly employed staff must begin to receive the living wage rate, if contractors cannot pay the living wage, you must make a commitment with the living wage foundation that contracts will be renewed at the living wage rate 6

7 What does it mean to be an accredited living wage employer? Accredited Living Wage employers have been certified by the Living Wage Foundation. All living wage employers will: Appear on the Living Wage website and searchable map so consumers, prospective employees, students and funders can easily see who pays a real living wage that meets the cost of living Display the Living Wage Employer Mark to recognise their commitment to the Living Wage How best to communicate being an accredited living wage employer: Display accreditation mark on company website, signatures and company marketing materials Communicate to your employees display the Living Wage plaque in a prominent place Communicate to your supply chain communicate your Living Wage commitment to everyone you do business with and encourage them to implement the Living Wage Join in the conversation show your commitment and use social media channels to encourage other businesses to sign up 7

8 What are the challenges and where can I get more info? Challenges that can arise during/after implementation of the Living Wage: Affordability Maintaining pay differentiation The potential for the Living Wage to rise every year Further information The Living Wage Foundation have a whole host of useful resources if you are considering becoming a Living Wage accredited employer. Check out their FAQs 8