The UK’s living wage rate is voluntarily paid by over 7,000 businesses. All of these businesses are known as Living Wage Employers. The actual rate is £9.50 throughout the whole of the UK, and £10.85 in London.
Businesses choose to support their employees in this way because they want them to be able to afford everyday needs. Such things include the weekly food shop, surprise dentist visits or vet bills. Choosing to become a Living Wage Employer shows that directors care about their staff.
In this short blog article, we will go through some things.
- What is a Living Wage Employer
- Why we chose to become a LWE
What is a Living Wage Employer?
Like we have mentioned above, a Living Wage Employer is when a business chooses to pay their staff a more suitable living salary than the minimum wage. Many employees receive pay-rises when their company chooses to become Living Wage Employees, which is great!
Some examples of LWE companies include:
• Everton FC
• McCall Media Ltd
The minimum wage for under 23’s in the UK is £8.36 an hour. For over 23’s, it is £8.91. In reality, this is a mathematical calculation of earnings, not actually how much people need to live! In contrast, the Living Wage Employers offer £9.50 in the UK. There is even a separate higher rate of £10.85 in London.
It is much more expensive to live in London, so as a LWE, we believe they deserve the right to a higher wage. It ensures that all employers who can afford to pay a higher rate do so, so that their staff earn a wage that meets realistic living costs.
Why we chose to become a Living Wage Employer
As a small business, we want to give our employees the best possible opportunities in life. We want them to excel and enjoy what they do, all for a suitable wage.
Offering this to all staff ensures that they don’t need to stress about the way they are paid and how much they are paid. This way, they can focus on their work and doing it to the best of their abilities.
It was relatively simple to become a Living Wage Employer. Firstly, you have to start by paying the agreed wage to your employers soon. Then, you need to have a plan about how you are going to pay them in the long run. After this, all you have to do is complete the application form on the Living Wage Website. That’s it! You are now officially a LWE business.
There are a number of benefits this brings to both businesses and employees.
• There is a higher retention rate for employees. This means staff motivation rates are much higher.
• When your staff are happier, they are much more productive in their work. Staff have fewer worries about their money, so they can focus solely on all of their work and projects.
• The relationship between staff and employees gets much stronger.
• Reputations of businesses increase because it shows that they really do care about their employees.
• This looks great against competitors, and makes your business stand out!
Some resources from Living Wage Foundation
Overall, becoming a Living Wage Employer has a whole host of benefits, for both business and employer. Realistically, there are no bad things about it. Before you decide to become part of LWE, have an in depth research into what its about so you can decide whether this may be the right thing to do in your business.