I suspected our move to the Real Living Wage and cutting hours with no loss of income for employees hadn’t had a negative effect on productivity. Two weeks ago I met with my account and received the proof that I was correct. In fact, productivity has increased to the point that staff wages are a smaller percentage of turnover than they were last year.
So we’re paying our staff a higher wage which has been offset by the increase in turnover due to increased productivity. This has had a positive effect on our net profit as well.
I’d call that a win, and pretty definitive proof that it can be affordable for companies to pay their staff a real living wage with no negative effect on turnover and profit.