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.

Posted by:elizabeth

Full-time entrepreneur, part-time ukulele plinker, occasional photographer, skin care fanatic, slightly over-sized clothes horse, moderately-successful gardener, unapologetic crazy cat lady, creative soapmaker, happy hen keeper, and enthusiastic birdwatcher. I bake nice cakes, but can’t find a hat to fit.

2 replies on “Real Living Wage/Productivity

    1. Thanks! I am really excited it’s worked so well. People really do respond when treated fairly. I’d love for someone to do a case study, but it’s been difficult to find anyone interested.

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