Paying the Living Wage can bring significant business benefits, such as increased productivity, decreased absenteeism and innovation in the work place but equally importantly it can be a key tool to address inequality.
A survey by Business for Scotland showed the vast majority of members supported the Living Wage: 96% of members surveyed supported paying the Living Wage, and 132 or 75% of the employers who responded currently pay the Living Wage or higher. And just last week the 300th Scottish business was accredited as a LW employer.
Business for Scotland held an event in Glasgow to showcase the business benefits of paying the Living Wage, for employers. Business leaders spoke of increased productivity and loyalty they had received from employees, and employees explained how they felt motivated and supported by employers who paid them the Living Wage.
You can watch the video here.
The benefits to employers, employees and society as a whole are considerable:
- 25% fall in absenteeism.
- 80% of employers believe the LW has enhanced the quality of the work of their staff.
- 66% of employers reported a significant impact on recruitment and retention within their organisation.
- 70% of employers felt that the LW had increased consumer awareness of their organisation’s commitment to be an ethical employer.
- Those receiving the Living Wage can afford a decent quality of life.
- For some, it means working fewer hours and having time to see their families, time to volunteer in their communities, or time to look after their health.
- Those working in LW workplaces have better psychological wellbeing than those in non-LW workplaces.
- Two-thirds of people interviewed in LW workplaces reported improvements in either their work, family life or finances.
- Paying workers a LW can also boost the local economy, by giving people more money to spend on goods and services.
- Increasing the income of workers can also reduce the need for in-work benefits such as housing benefit and working tax credits.
Business for Scotland – Prosperity for Scotland – Join us now
Paying the Living Wage makes good business sense
A Living Wage can drive workplace innovation in Scotland
Poll finds huge support (96%) for living wage amongst SMEs