In FMJ's regular monthly column, our team of FM experts answer your
questions about the world of facilities management
THE IWFM’S VIEW
SOFIE HOOPER, HEAD OF POLICY, IWFM
There are, of course, strong
moral and ethical arguments
for paying the real Living
Wage, but we believe that the
key to encouraging greater
support for the movement is
education. Specifically, we need
champions to make the case for
the tangible business benefits of
ensuring that a hard day’s work
receives a fair day’s pay. This
can be through professionals
educating internal stakeholders
or Recognised Service Providers
(organisations accredited by the
Living Wage Foundation for their commitment to paying
the real Living Wage at a minimum) educating external
stakeholders.
Our intent in producing our Living Wage
guidance in partnership with the Living Wage
Foundation was to support that case. Through
this guidance, we are arming our profession
with the rationale and supporting evidence
to drive change that benefits individuals,
communities and their organisation’s bottom
line.
Some of the findings from academic and
independent research found within the guidance
include:
Sta wellbeing: as pointed out in the ‘Taylor Review of
Modern Working Practices’, pay and good work are strongly
linked to better physical and mental health outcomes.
20 SEPTEMBER 2020
Improved productivity and
service levels: healthier,
happier sta can focus more
on their job, morale and
motivation are improved,
absenteeism and sickness
rates reduced, and individual
and collective performance
boosted.
Better sta recruitment
and retention: higher pay improves
worker loyalty and engagement, and
lower sta turnover brings down recruitment,
training and overall personnel costs. With the UK’s
post-Brexit immigration policy set to close o the supply of
so-called ‘low-skilled’ labour on which cleaning, catering,
security and other services rely, has there ever been a time
when finding and keeping sta is more business critical?
Corporate reputation and social value: improving the lives
of workers and their families helps an organisation stand
out from the competition and improves its reputation. It
also sends a ripple e ect through the local economy to the
advantage of other sectors and businesses and, more broadly,
helps to improve social mobility and lower public spending
on benefits.
The bottom line: increased recruitment power, improved
productivity and service levels, higher levels of customer
satisfaction and loyalty: all of these benefit an organisation’s
stakeholders through increased margins and profitability.
A 2017 survey of Living Wage employers concluded that ‘the
balance of outcomes lies very firmly on the positive side’ with 93
per cent of respondents stating they had benefited from paying
the real Living Wage. The same survey also reported that
most businesses absorbed the additional expense
without trying to recover costs elsewhere and
in most contracts the higher costs were
absorbed by the client. Furthermore,
the majority agreed that paying the
real Living Wage had given them a
competitive advantage and enabled
them to secure more client contracts.
With 19 per cent of jobs in the UK
still paying below the real Living Wage,
there are clearly more people who
could benefit, especially during these
uncertain times when many contracts
are being re-negotiated. These are o en
the same people whose e orts we have
applauded during the pandemic, but clapping for
our key workers does not pay their bills or help them
support their families.
FM CLINIC
The Institute of Workplace
and Facilities Management
(IWFM) recently published
guidance, in partnership
with the Living Wage
Foundation, outlining the
practicalities and benefits of
paying the real Living Wage.
With FM suppliers admitting they
o en struggle to deliver a real Living
Wage to workers whilst maintaining
their competitive edge, what more can be
done to ensure that clients and other stakeholders
support the drive to pay people a fair wage?
Sof ie Hooper
ADVICE & OPINION
With 19 per cent of jobs in
the UK still paying below the
real Living Wage, there are clearly
more people who could benefit,
especially during these uncertain
times when many contracts are
being re-negotiated.”
– Sofi e Hooper