Hospitality sector feels pressure of the increased ‘Real Living Wage’.

Nov 14, 2017

The Living Wage Foundation has announced this week a new UK living wage of £8.75 per hour, an increase of 30p per hour, rising to as much as £10.20 in London, an increase of 45p per hour. It is expected that at least 150,000 UK workers across 3,600 businesses are set for a pay rise.

Of the companies that have adopted the voluntary scheme, 104 are in the hospitality sector: including Brewdog, Curzon Cinemas and the Haytor hotel.

The real living wage is separate from the statutory National Minimum Wage and National Living Wage, and is set by the Living Wage Foundation, not the government. Employers pay it voluntarily.

However, it is clear that the industry is intent on putting measures in place to help improve the welfare of their staff.

“We’ve made a commitment to become a London Living Wage Employer in all the London hotels we manage over the next five years.”

Stephen McCall, InterContinental Hotels Group Managing Director

This is likely to benefit 850 employees currently working for the group, and will hopefully see more companies follow suit.

Living Wage Foundation director, Katherine Chapman said: “The new living wage rates announced today will bring relief for thousands of UK workers being squeezed by stagnant wages and rising inflation. Great businesses know that, even during these tough times, not only is fair pay the right thing to do but paying the real Living Wage brings big benefits.”

This is a vital time for businesses to ensure they are implementing the best resources to deal with increasing costs in their workforce. There is already plenty of evidence emerging that companies who rely on lots of relatively low-skilled staff are pulling out of those areas, or else finding ways to run their businesses with fewer people.

ShopWorks are experts at dealing with constant wage rises affecting the direct cost of staff. Our bespoke Workforce Management solution simplifies staff scheduling, improves rota management and ensures that you work to a pre-determined budget to remove the chance of overspend. Specialising in Retail, Leisure and Hospitality, our clients save up to 10% on direct staff costs.


Want to more about this topic or would like to speak to us regarding anything Workforce Management related? Just get in touch with us below and we'd be happy to help.