The Compelling Case for Employers Embracing the Real Living Wage Movement

In today’s rapidly evolving business landscape, customers, employees, and other stakeholders are all paying attention to businesses’ impact on the world around them. Companies must be mindful of their social and environmental responsibilities, employee well-being, and culture to attract and retain top talent and improve customer relationships.

It’s been a tough couple of years for many workers, especially those who have experienced pay cuts due to the pandemic and take-home pay not reflecting the cost of living crisis. Employers need to consider the impact of these cuts and find ways to support their employees. One solution could be a commitment to a real living wage, which would help retain staff and improve their overall quality of life. Companies can create a more loyal and dedicated workforce by valuing their employees and investing in their well-being.

The Real Living Wage Movement has gained momentum as a powerful force for positive change, advocating fair compensation for all employees. This year, the Mackman Group celebrates its one-year milestone of the Real Living Wage and Real Living Hours Accreditation. As a division of the group, we are reflecting on why becoming a Real Living Wage and Real Living Hours Accreditation employer will help transform your workplace for the better.

The Real Living Wage is the UK wage rate based on the cost of living. It is a voluntary movement that over 13,000 UK businesses follow as they believe their staff deserve a wage which meets everyday needs. The Real Living Wage adjusts annually to account for changes in inflation and the actual costs of living as opposed to the National Minimum Wage set out by the UK Government. 

The Living Wage Accreditation is awarded to UK businesses that pay their staff the Real Living Wage and have an agreed-upon plan for contractors to ensure they are also paid a fair wage for the work they complete for an organisation. An organisation can apply to become a Living Wage Accredited organisation after providing staff and contractors with the Real Living Wage.

Real living wage employer

One of the primary advantages of committing to the Living Wage Movement is the significant improvement in employee well-being and job satisfaction. Providing employees with wages that cover basic living expenses helps reduce financial stress, helping to improve productivity and growth within the workplace. Employees who feel valued and supported are more likely to be motivated and loyal, leading to reduced turnover rates. 

Offering a living wage clearly conveys that your organisation values its employees’ livelihoods and is committed to their financial security. This can give your company a competitive edge in attracting talent as candidates can avoid the dilemma of choosing a career over income, they can have both. Moreover, satisfied employees are more likely to stay with a company, reducing recruitment and training costs associated with high turnover rates.

“Employees are likelier to stay with a company that values their well-being and provides fair compensation. We have found at The Mackman Group that since paying a real living wage, we have reduced our employee turnover rate, bucking the trend of a fast-paced industry which struggles to retain talent”

Lydia Boyden, Managing Director of Red Kite HR Services

Companies that embrace the Living Wage Movement demonstrate a solid dedication to ethical business practices and social responsibility. Committing to your staff and contractors can enhance your organisation’s reputation in the eyes of customers, investors, and other stakeholders. This positive perception can increase customer loyalty, brand trust, and potential partnerships, contributing to long-term business success.

Becoming a Living Wage employer primarily benefits junior employees who are starting their careers. A living wage positions the company as forward-thinking and adaptive, potentially attracting younger generations who prioritise ethical employment practices. Incorporating the Real Living Wage into your company’s compensation strategy can lead to both short- and long-term benefits. 

Discover the Real Living Wage advantage today and speak to our expert consultants to enhance your compensation and benefits strategy. Please find out more by contacting us on 01787 207607 or