Living Wage: Employer Survey 2016 An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Introduction The Scottish Living Wage Accreditation Initiative issued a survey to all accredited Living Wage employers in Scotland in March 2016. The survey was issued to 432 accredited Living Wage employers and 158 employers responded. This report is a summary of the findings of this survey from the employers who responded. The survey was anonymous, however information on the size, sector and geographical location of the employers who responded can be found in the appendix. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Page 2 Living Wage: Employer Survey 2016 Page 3 Benefits to staff The survey asked employers if any staff had provided feedback since the Living Wage employer accreditation had been obtained. The feedback received on this question was overwhelmingly positive, with no negative comments. “Staff feel more cared for”. “A large number of staff have personally sent messages of appreciation”. “Most of our staff had not really heard of the Living Wage as such and were extremely happy to receive a wage review based on the new rate. It did cost us approx. £15k but feel it was worth the process and has helped the affected staff immeasurably”. “New staff on part time contracts have said that it had made a huge impact on their standard of living. Staff have said they are more willingly to work flexibly because of the good rate of pay that they receive”. “Staff who did not receive a pay increase have commented that they agree its the right thing to do”. “Gives them comfort and confidence in us as employers”. “They feel mainly, I believe a greater sense of worth”. “An intern said that it made a huge difference to her to be paid the living wage vs the minimum wage”. “Staff are proud to work for an organisation that is living wage accredited”. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Page 4 Business Impact Some of the survey respondents indicated that it is too early to say what impact Living Wage accreditation will have on the business. For the 152 employers who said they have noticed an impact in terms of business benefits, the following was reported: 67% of Living Wage employers agreed or strongly agreed that Living Wage accreditation had a positive impact on staff retention 78% of Living Wage employers agreed or strongly agreed that Living Wage accreditation had a positive impact on staff morale/ motivation 66% of Living Wage employers agreed or strongly agreed that Living Wage accreditation had a positive impact on recruitment 55% of Living Wage employers agreed or strongly agreed that Living Wage accreditation had a positive impact on productivity 93% of Living Wage employers agreed or strongly agreed that Living Wage accreditation had a positive impact on company reputation “We have had 0% staff turnover since implementation. Staff speak positively about the company when they are outside work. Everyone has cause to feel proud to be part of Living Wage”. “Staff turnover has dropped by c. 40% since implementation of the Living Wage. Satisfaction with pay & working conditions rose by around 50% in the staff survey following implementation”. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Page 5 Benefits of accreditation Some of the survey respondents indicated that they already paid the Living Wage or above prior to becoming an accredited Living Wage employer, but felt that accreditation was important, both in terms of demonstrating an ongoing commitment to fair pay and to company reputation in the eyes of existing and potential clients and employees: “We already paid our team members above Living Wage so the greatest benefit to our organisation is the perception of the accreditation to our clients and potential clients/employees. The accreditation still has an impact on our existing employees and demonstrates our commitment to fair wages which is very, very difficult for an architectural practice in the last 5 years.” “Living Wage Accreditation has allowed us to demonstrate our commitment to rewarding staff with a salary that is worthy of the work that they do”. “Adds credibility to the firm’s CSR policy”. Some employers also noted positive impact on relationships with contractors and contracted workers: “Most of our staff are paid above the Living Wage so this hasn’t had a huge impact. However we did ask the company who employ our cleaners to increase their wages (at an increased cost), which had a positive impact on our relation with them, and also which our own staff saw in a very positive light”. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Page 6 Business changes The survey asked whether the process of Living Wage employer accreditation lead to considerations in changing other aspects of the business, such as staff shift patterns, use of zero hours contracts, changing job roles or pay differentials. Whilst the majority (61%) of Living Wage employers indicated that accreditation did not lead to considering other changes within the business, there was evidence that becoming a Living Wage employer did lead to changes amongst some employers. The business changes considered by Living Wage employers as a result of Living Wage employer accreditation Business changes considered Applying for other other employer recognition awards Pay differentials Changing job roles Reducing the use of zero hours contracts Flexible working policies/practices Staff shift patterns 0% 5% 10% 15%20%25% The largest consideration for respondents was pay differentials. One Living Wage employer reported that differentials were markedly reduced and that in order to sustain their commitment to the Living Wage it is likely that they will need to increase their membership fees. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Page 7 Promotion of Living Wage Employer Accreditation The most common way in which the survey respondents had heard about Living Wage employer accreditation was via word of mouth (27%). The other most common ways in which respondents indicated that they had heard about Living Wage employer accreditation were the Living Wage website (13%), national press (19%) and networking/ events (8%). The least common ways in which respondents indicated that they had heard about Living Wage employer accreditation were TV (2%) and local press (2%). Almost 90% of respondents indicated that they have or intend to promote their accreditation as a Living Wage employer. “We use it on our email footers”. “We use the logo on our web site, social media and tenders for work”. “We have the logo on our headed paper, website and displayed at reception that we are a Living Wage Employer”. “We use it on our letterhead paper” “We include it on our brochures and website”. “We use this on recruitment adverts plus our stationary”. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government “We are doing a press release with the Plaque and our CEO”. Living Wage: Employer Survey 2016 Page 8 Over 70% of respondents indicated that they have or intend to encourage other employers to become accredited as Living Wage employers. “I am a member of local FSB and every opportunity is a good opportunity to discuss the wages people pay their staff. I have no hesitation to share with others how loyal my team is and one of the reasons for that is a good rate of pay”. “We seek to only give our business to other accredited Living Wage employers”. “We have written to all our clients and social media contacts about considering accreditation”. “We are trying to set an example to local employers”. “We encourage our suppliers to consider joining”. In some cases, respondents indicated that these efforts had led to other employers considering the Living Wage and/ or becoming accredited as Living Wage employers. “We encouraged other employers (i.e. our cleaning company) to become Living Wage Employers and they have now amended their policy to tender for jobs with the Living Wage instead of waiting for clients to ask for it”. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Page 9 Service from the Scottish Living Wage Accreditation Initiative Team 66% of respondents rated the service received from the Scottish Living Wage Accreditation Initiative as excellent. 28% of respondents rated the service received as good and 6% as OK. No respondents rated the service received as not good or very poor. However some respondents indicated that there had been a delay in receiving communication from the team, suggesting that there is some room for improvement: “There were some communication issues which led to a delay in our being acknowledged then in receiving our plaque”. “Better communication, there seemed to be a delay to start with”. Appendix – Survey Respondent Demographics 158 Living Wage employers responded to the survey. The following provides a summary of the survey respondents, as well as total accredited Living Wage employers in terms of employer size, sector and geographical location. This survey is considered a representative sample of all accredited Living Wage employers in Scotland. More detailed information, such as the range of industry types and local authority regions, can be made available upon request. An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government Living Wage: Employer Survey 2016 Page 10 Size of employer Number of staff employed Percentage of overall survey responses Percentage of overall accredited Living Wage employers (including survey non-responders) 1 – 10 31% 37% 11 – 50 45% 38% 51 – 250 15% 16% 251 – 500 3% 4% 501+6% 6% 5% Sector Percentage of overall survey responses Percentage of overall accredited Living Wage employers (including survey non-responders) Public sector 15% 14% Private sector 52% 58% Third/ voluntary sector 33% 28% Sector of employer Geographical location of employer (7 most common of 32 Local Authority regions) Local Authority Region Percentage of overall survey responses Aberdeen 3% East Ayrshire 3% Edinburgh 25% Fife 9% Glasgow 20% Highland 4% Perth and Kinross 4% South Lanarkshire 4% Stirling 4% West Lothian 3% An initiative from the Poverty Alliance, in partnership with Living Wage Foundation, funded by the Scottish Government
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