With recent figures from the Office of National Statistics showing that wages aren’t rising in line with the rate of inflation, and research from the Social Mobility Commission finding that a quarter of low paid workers remain stuck on a low salary, this year’s Living Wage Week is a timely reminder of the need for businesses to address the UK’s wage endemic.
The voluntary real Living Wage however is independently calculated each year based on real living costs, proven to make a genuine difference to workers’ lives. Today, the real Living Wage rate for 2018 has been announced as £8.75 per hour (£10.20 in London).
But at a time when UK workers are facing the rising cost of living while wages are being squeezed, paying the real Living Wage is now more important than ever for all businesses, so there’s still some work to be done.
At IKEA, we care about people first and firmly believe they are at the heart of what makes our business successful. For us, offering co-workers the real Living Wage was not only the right thing to do, but it also makes good business sense.
According to the Living Wage Foundation, an incredible 93% of real Living Wage businesses say they have benefitted since they received accreditation, and 75% have noticed an increase in motivation and retention rates. This goes beyond salary – as employers we have the responsibility to secure ethical employment standards and support a balanced, positive work-life.
Pernille Hagild is IKEA UK’s Country HR Manager