‘I can breathe a little more. I can save for something else.’
Hotel worker employed by a Living Wage accredited employer
- The Living Wage Foundation has published a toolkit to support responsible employers within the hospitality sector – including restaurants, bars, hotels, nightclubs, holiday accommodation and music venues – to accredit as Living Wage employers.
- The real Living Wage is the only UK wage rate based on the cost of living, and is currently £13.85/hr in London, and £12.60/hr in the rest of the United Kingdom. For a full-time worker, the difference compared to the National Living Wage equates to £2,262 a year, rising to £4,700 a year in London.
- There are currently more than 15,000 Living Wage Employers across all industries, including Aviva, KPMG and Ikea. There are 621 accredited hospitality employers, benefiting more than 17,000 workers, including Curzon Cinemas, Borough Market, Mercato Metropolitano, Sunborn Hotel and Human One Global. A full list of Living Wage Employers can be found here.
- For the last 12 years the hospitality sector has remained the sector with the highest proportion of jobs paying below the real Living Wage. The toolkit is based on independent research conducted by Middlesex University, which involved interviews with 17 accredited hospitality employers, one industry body representative, and 15 hospitality workers.
Key findings from the research include:
- Living Wage accreditation helps hospitality employers to position themselves as an ‘employer of choice’, thus improving their ability to recruit and retain good staff
- Living Wage adoption is seen by several hospitality employers as a means to raise the image of their industry
- Living Wage accreditation provides assurance to employees that their employers are committed to paying a wage rate that helps them meet their needs in the long-term
- Careful implementation of the Living Wage includes working out the balance between service charges and a higher base pay, consideration of different pay levels, and its incorporation into annual budget planning and into wider ‘good people management’
- For hospitality workers there are numerous financial and psychological benefits attached to being paid a Living Wage, in particular where sufficient hours are offered to them, and where they also have opportunity for skills development and progression.
The toolkit introduces hospitality businesses to the process of becoming accredited as a Living Wage Employer and the relevant policies. It highlights some of the challenges faced by hospitality employers and includes case studies of hospitality employers that have successfully implemented the real Living Wage.
It includes information on further opportunities for working with the Living Wage Foundation to champion fair pay and good employment practices, through Living Hours and Living Pensions.
Katherine Chapman, Director at the Living Wage Foundation, said: “Despite the challenges faced by the sector of recent years, it’s been inspiring to see a record number of hospitality employers stepping up to pay the real Living Wage.”
“Paying the real Living Wage isn’t just the right thing to do for workers, it makes business sense too. It boosts staff morale, improves retention and recruitment, and creates a more sustainable future for the industry.
“Our new toolkit offers practical advice and tells the stories celebrating Living Wage Employers in the hospitality sector. We are proud to celebrate those who are paying a real Living Wage in hospitality, thanks to their commitment they are changing the industry for the better.”
Commenting on the report and the toolkit, Dr Werner, who co-authored the research, said: “Middlesex University is proud to have collaborated in this project. Hospitality makes a vital contribution to tourism and cultural life across the UK, yet it remains one of the sectors with the highest proportion of jobs that pay below the real Living Wage. Our research shows that adopting the real Living Wage is a viable and valuable option for hospitality employers. We hope that our research will inspire more employers in hospitality to seek, and capitalise on, real Living Wage accreditation.”
Howard Dawber, Deputy London Mayor for Business and Growth said: “Hard-working Londoners deserve a fair and honest wage and more than 4,000 businesses in the capital are already paying their staff the London Living Wage. This new toolkit will offer hospitality firms the support they need to join this growing movement and help build their business, as we continue building a fairer and more prosperous London for everyone.”
Robert Richardson FIH MI, CEO of the Institute of Hospitality, the global professional body for hospitality, commented: "The Institute exists to raise industry standards, promote hospitality as a career, and provide relevant, inspirational lifelong learning to professionals across the UK and globally. I hope that this hospitality toolkit will encourage more employers to see the benefits of paying the living wage and take action to become accredited Living Wage Employers.”
Ally Clow, Head of Operational HR at Curzon Cinemas, one of the Living Wage Employers included in the research, said: “By being part of the Living Wage, we attract high quality candidates for our entry level roles, which aligns with our brand values. We can then develop these employees into managers in our cinemas and also provide career paths to roles at head office. This internal development strategy is only possible if you have outstanding talent at the grassroots level, and being part of the Living Wage contributes to Curzon being able to do this.”
Employers can access the Hospitality Toolkit on the Living Wage Foundation website here. There is more information about accrediting as a Living Wage Employer here,
Photo: The Living Wage in Hospitality Toolkit launch with Hospitality employers at the Sunborn Yacht Hotel.