Living wage ‘improves employers’ repuation’ study shows

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Employers who pay the voluntary Living Wage improve their reputation and enhance their brand, a study has found.

Research by Cardiff Business School showed no evidence of companies recovering the cost of the voluntary figure – which is higher than the government’s National Living Wage – through cuts elsewhere.

There was said to be strong employer commitment to the voluntary figure of £9.75 an hour in London and £8.45 elsewhere, compared with the government rate of £7.50 for over-25s.

Professor Edmund Heery of Cardiff Business School said: “The evidence collected in this study supports the belief that the Living Wage campaign is sustainable and can continue to attract employers to the task of reducing in-work poverty.”

Living Wage Foundation director Katherine Chapman said: “This research demonstrates to businesses who are able, that going above and beyond statutory minimums brings tangible benefits to an organisation.

“Just a year ago there was concern that the higher minimum wage rates for over-25s would see a slowdown in businesses accrediting as Living Wage employers.

“The reality has been sustained growth, doubling the number of accredited businesses from July 2015, with more responsible organisations sharing our vision that a hard day’s work deserves a fair day’s pay.”

More than 3,000 employers have signed up to the voluntary Living Wage since it was created six years ago.