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Celebrating
SEPTEMBER 2020 21
FMJ.CO.UK
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 sta
morale, a rise in
service standards,
improved retention
of sta 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 sta 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 sta 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 a ord
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 a ordable and the true reality of the cost
of living.
Working with informed clients who understand the
importance of providing sta 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 di erence 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 e ective 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 e ective recruitment and retention of sta 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
FM CLINIC
James Gregg
Connecting
people,
property and
data for peak
performance
Concept Evolution
CAFM / IWMS
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Mobile Workforce apps
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Workplace apps
30YEARS
in 2020
Guy Stallard
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