KPMG believes that more organisations should pay their employees and contract staff (cleaners, caterers, security staff etc) a Living Wage – a rate of pay that enables them to afford a basic quality of life. This is currently at the rate of £8.30 an hour in London and £7.20 elsewhere, while the National Minimum Wage is £6.19 an hour.
On 5 November a new London Living Wage rate will be announced by Boris Johnson, Mayor of London, and similarly the new National Living Wage rate will be announced on the same day. These events will launch a week of activity designed to encourage more employers to sign up.
Why should companies pay the Living Wage?
KPMG and others believe that businesses should do more than the minimum required of them, and pay staff a wage that enables them to meet the basic costs of living and supporting a family.
As well as being right from a moral standpoint, KPMG has also found that it makes good business sense. Since introducing the Living Wage for its staff in 2006, KPMG has found that the extra wage costs are more than met by lowered recruitment churn, greater loyalty, and higher morale, leading to better performance.
Turnover amongst KPMG’s contracted cleaning staff has more than halved since paying the Living Wage.
Nearly 100 companies are now accredited Living Wage employers. They gain accreditation through the Living Wage Foundation which is run by the charity Citizens UK.
What is happening in Living Wage Week?
There will be a host of events during the week of 4 November to promote, celebrate and inform on paying a Living Wage:
- This will include the announcement of a new Living Wage rate by Boris Johnson, Mayor of London, on Monday 5 November.
- Living Wage employers and supporters, including KPMG, will be holding events throughout the week to promote the benefits and rationale for signing up.
For more information on the events during Living Wage week please visit Living Wage Foundation