Living wage makes for better employees says report

The benefits of implementing the living wage include reduced absenteeism and improved productivity, according to a report by Ipsos Mori and Loughborough University.

Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham said “As well as the more obvious benefits to individuals receiving higher pay, I hope the findings on improved rates of absenteeism and better productivity help convince employers, not already on board with the Living Wage, that it could be a very positive step for their business.”

Other benefits of the living wage include enhanced company reputation and lower staff turnover, according to the findings of ‘Wider Payment of the Living Wage in Scotland’. The Scottish Government hopes to recruit more businesses in Scotland to its Scottish Business Pledge, unveiled by Nicola Sturgeon yesterday.

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Cunningham admitted implementing the living wage won’t completely solve the problem of inequality.

“Employers paying the living wage is only half the story here. The tax and benefits system needs to work smarter to make sure that people on low incomes see a greater share of any increases in pay – and we will press the UK Government to make sure this happens,” she said.

During a debate in Parliament last week, Labour’s Neil Findlay said the government can “do much, much more now to address low pay” and called for an action plan to raise wages and living standards for Scottish workers.

Findlay is one of only seven MSPs registered as living wage employers, along with Labour colleague Drew Smith of Labour, the SNP’s Graeme Dey, Linda Fabiani and Christina McKelvie and Liberal Democrats Willie Rennie and Jim Hume.

Peter Kelly, who co-chairs the Scottish Living Wage Campaign, told the Herald: "MSPs obviously carry a lot of weight in their local community. They speak to a lot of businesses and if they want to promote the living wage we are happy to accredit them."

A recent KPMG report, however, showed Scotland to be most Living Wage-aware region in UK with 9 out of 10 Scots having heard of the Living Wage and a higher proportion of employees paid the Living Wage than the UK as a whole.

Aberdeenshire beer company Brewdog recently became the 200th organization to join the cause, adding to the list of living wage accredited Scottish employers.