The claim among more than half of employers is that the Living Wage will result in increased productivity. Whether this means getting rid of some employees and making those left behind do more, or some other form of productivity remains to be seen.
The new “national living wage” will push up wages at more than half of all employers, forcing many of them to seek savings through improved productivity, according to a major survey. The survey, one of the first to test the mood among employers before the higher wage comes into effect next April, found that 54% of respondents said it will have a material effect on their wage bill. In response, three in 10 of those organisations affected are planning to recoup some or all of the extra cost by raising productivity, according to the survey by the Resolution Foundation and the CIPD, the professional body for personnel staff.