FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
THE LIVING WAGE EMPLOYER’S VIEW
GUY STALLARD,
HEAD OF PERFORMANCE & OPERATIONS, KPMG BUSINESS SERVICES
For us, there is a clear business case, as well as a moral one, for paying the real Living Wage.
Since rolling it out to all of our employees and contractors in 2006, we have seen improved staff morale, a rise in service standards, improved retention of staff and increased productivity.
The actual cost of KPMG’s facilities operation has in fact reduced since we started paying the real Living Wage. Our facilities cleaning contractor, ISS, found that the extra wage costs are more than met by lowered recruitment churn and absenteeism (10 per cent in the first year of implementation), greater loyalty, and higher morale leading to better performance.
Ensuring all of our staff are being paid this rate and encouraging others within our supply chain and beyond to reciprocate, is a key role we, as a large business, can play. As part of our support for the movement, we have assisted clients to implement the Living Wage themselves and further supported the Living Wage Foundation through pro-bono work and secondments.
As a large firm, we believe that responsible, diverse and inclusive businesses are more successful and that the act of paying a real Living Wage can act as a fundamental driver of social mobility. Prior to COVID-19, it was encouraging to see more businesses pay their staff the real Living Wage, year on year. Our joint research with IHS Markit found that an estimated 19 per cent (5.19 million) of jobs in the UK were paid below the real Living Wage in the last year. These figures are an improvement on 2018, when 22 per cent (5.75 million) of jobs paid below the real Living Wage.
We’ve always believed that businesses that can afford to pay a fairer wage should do so. But with COVID-19, Brexit and economic uncertainty a very current threat, we must continue driving this momentum forward, both in terms of stimulating our economy to protect the livelihoods of keyworkers but also other workers, such as those in our supplier teams, who have worked tirelessly during the pandemic; to secure our buildings, undertake essential maintenance, provide business critical functions such as mail and print services and have ensured our buildings are clean and safe for occupation.
If you are not yet paying the real Living Wage or are and are not yet accredited, I would strongly encourage you to have a conversation with the Living Wage Foundation, of which KPMG is a founding member.
It may not be possible or practical for everyone to implement, but as the economy recovers organisations need to do what they can to address the problem of low pay.
THE FM SERVICE PROVIDER’S VIEW
JAMES GREGG,
MANAGING DIRECTOR, WATES FM
Businesses have a moral duty when it comes to fair pay. The proportion of people currently living in poverty within a working family is at a record high and amounts to seven in 10 children – that is both startling and upsetting. It’s clear that there is a significant gap between what is deemed affordable and the true reality of the cost of living.
Working with informed clients who understand the importance of providing staff with a Living Wage contract is a very important way of showing that employee welfare is a top priority. Organisations in the FM industry as well as the business community as a whole must understand the huge difference the Living Wage can make to an individual’s life. However, as the economy recovers from lockdown, it is possible that many businesses may not be at the stage they want to be when it comes to providing fair wages. An effective starting point for those in this position would be to set out a three to five-year road map with clear objectives of what the business can achieve during that time frame.
Paying the Living Wage has far reaching benefits for not only the workforce but also employers. There is an extremely positive correlation between the Living Wage and employee loyalty and by paying the Living Wage, employees are less likely to need to opt for a second job to pay the bills. This means they will be more committed, positive and energetic when coming to work every day. Having a highly productive, happy workforce is a major contributor in the effective recruitment and retention of staff and enhanced company reputation and work quality.
Of course, organisations should not assume implementation of the Living Wage is a socially responsible endpoint. It requires on-going, active management to ensure its benefits are optimised. It is part of a far wider issue, so it is important for businesses to look at other aspects of responsible employment such as the gender pay gap.
Wates FM achieved Recognised Service Provider status in November 2019 and is committed to supporting the Living Wage Foundation’s work, ensuring our employees and supply chain partners earn a wage that meets the cost of living, not just the government National Minimum or Living Wage. Our business is reliant on teams who work hard to deliver high quality services for our clients and we recognise that in order for families, communities and businesses to shine, we need to ensure our employees are treated ethically and paid fairly.
