Concerns to the bottom line melting away in favour of the new NLW
Six in ten UK employers have come out in favour of the new National Living Wage, according to new research from Group Risk Development (GRiD).
From April 2016, the new mandatory National Living Wage (NWL) will be set at £7.20 an hour – leaving some businesses concerned about the impact on their bottom line.
However, 62% of employers have now said they’re in favour of the proposal, with only one in five (21%) disagreeing.
The majority (82%) of employers also feel that a rise in the personal allowance to £11,000 will help to mitigate government cuts to tax credits, and would better support households.
UK businesses also strongly support the protection of employees’ health and welfare, with 41% believing employers have a role to play in driving this – but also feeling that the government should incentivise them more to do this.
Katharine Moxham, spokesperson for Group Risk Development (GRiD), said: “Employers are clearly putting staff first when it comes to welfare and consideration of income. Yes, there has been widespread concern and calls to cast the new Living Wage aside for the sake of the bottom line but, on the ground, businesses are thinking longer-term when it comes to employee support.
If there are concerns about how an increase in wages will be a drain on profitability, the important thing is to look at how a business can increase productivity. This really does start with the people, and the key is to look at ways of improving staff morale – whether this is through flexible working, focusing on fitness, financial education or other means. The fact is, a contented and focussed workforce will drive the business forward, and a change in salary should not be seen as a pull on that.”
Carl Chapman, head of workplace health at Barnett Waddingham, has been discussing the importance of supporting your workforce with Reward - read his blog HERE