It might seem obvious that earning a better wage can increase our quality of life, both within the workplace and at home. But our latest research shows that it is not only top earners who can benefit from this. 81 per cent of low paid workers think that moving to the real Living Wage would have a positive impact on their quality of life, suggesting that offering a fair wage can do more than help make ends meet.
The real Living Wage is the only UK wage rate calculated based on what it costs to live. We commissioned polling of 2,000 UK adults to understand the differences in quality of life and job satisfaction between low paid workers and those paid the real Living Wage. The results show a clear difference in experiences between these groups and suggest that raising wages can positively impact both workers and businesses.
Our research shows that over a third of those paid the Living Wage feel their pay has a positive impact on their physical and mental health. This falls to below a quarter of low paid workers. Similarly, people with a pre-existing health condition who are paid the Living Wage are more likely to say their pay positively impacts their physical and mental health – suggesting that a Living Wage makes a material difference to managing long-term conditions. Given the 8.2 million people at working age who have a work-limiting health condition, ensuring that people are paid an amount that means they can take good care of themselves is essential, and could help boost retention for employers.
Paying workers the Living Wage is also associated with higher satisfaction rates across other job aspects. People paid the Living Wage said they were more satisfied, and less dissatisfied, with every aspect of their work that we asked about. The difference is particularly stark when looking at people’s satisfaction with their level of pay, career advancement opportunities, level of employer pension contributions, and employee benefits. This might be because employers paying the Living Wage are also stepping up their offer to their employees in other ways, helping them progress and develop, and plan for their future.
This in turn could deliver long-term benefits to employers by improving recruitment, motivation and satisfaction among their staff. People paid the Living Wage were more likely to have felt cheerful, enthusiastic or optimistic due to their jobs in the past few weeks, and more likely than low paid workers to say their pay increases their motivation to do their job well (58 per cent vs 48 per cent). They’re also less likely to be looking for a new job due to dissatisfaction with their current one (19% vs 28%). Most tellingly, around two-thirds (65 per cent) of low paid workers would be more likely to stay with their current employer if their wage rose to the Living Wage standard, and over a quarter (27 per cent) would be much more likely to stay. Three quarters (75 per cent) would be more likely to take a competing job offer that paid the Living Wage.
This shows there are tangible benefits for businesses signing up to accredit as a Living Wage Employer. Importantly, raising low paid workers to the Living Wage rate could also have a transformative impact for those individuals – ensuring they can go to work to enjoy happier, healthier lives.
The real Living Wage is currently £12.60 across the UK and £13.85 in London. It is the only independently calculated wage rate that reflects the actual cost of living, covering essentials such as food, rent and bills. Unlike the government’s minimum ‘National Living Wage’ rate, the real Living Wage is a voluntary higher rate, paid by over 16,000 accredited employers who choose to do right by their employees, including half of the FTSE 100 and thousands of businesses of all sizes.
We hear every day about the difference the real Living Wage make for workers. We know that paying the real Living Wage is good for people - and when employees thrive, organisations thrive.
Find out more about the research and read the full report here.