MDX report finds Real Living Wage hospitality employers are better able to recruit and retain staff

MDX research that demonstrates the value of the Real Living Wage underpins new toolkit from the Living Wage Foundation

A new report, The real Living Wage in the London Hospitality Sector: opportunities and challenges, by Middlesex University academics Dr Andrea Werner and Dr Siân Stephens, says that the hospitality industry will reap the benefits in staff service, retention and recruitment if they adopt the Real Living Wage (rLW).

The MDX study involved interviews with 17 accredited hospitality employers, one industry body representative and 15 hospitality workers. It is released today (13/11) along with a new toolkit from the Living Wage Foundation.

Key findings from the report:

• rLW accreditation helps hospitality employers to position themselves as an ‘employer of choice’, thus improving their ability to recruit and retain good staff
• rLW adoption is seen by a number of hospitality employers as a means to raise the image of their industry
• rLW accreditation provides assurance to employees that their employers are committed to paying a wage rate that helps them meet their needs in the long-term
• employers do well to integrate rLW adoption into a wider ‘good people management’ approach, which includes providing opportunities for training and creating a positive work environment
• careful implementation of the rLW includes working out the balance between service charges and a higher base pay, consideration of different pay levels, and the incorporation of the rLW into annual budget planning
• for hospitality workers there are numerous financial and psychological benefits attached to being paid a rLW, in particular where sufficient hours are offered to them, and where they also have opportunity for skills development and progression.

Commenting on the report and the toolkit, Dr Werner, who co-authored the research, said: “Middlesex University is proud to have collaborated in this project. Hospitality makes a vital contribution to tourism and cultural life across the UK, yet it remains one of the sectors with the highest proportion of jobs that pay below the real Living Wage. Our research shows that adopting the real Living Wage is a viable and valuable option for hospitality employers. We hope that our research will inspire more employers in hospitality to seek, and capitalise on, real Living Wage accreditation.”

The Living Wage Foundation’s toolkit aims to support and help the hospitality sector and its staff thrive. It highlights the experience of employers including hotels, an event venue, cinema chain and cafe who have successfully implemented the real Living Wage. It includes case studies that set out solutions that employers have found when tackling common barriers to incorporating the real Living Wage.

Katherine Chapman, Director at the Living Wage Foundation, said:

"Despite the challenges faced by the sector of recent years, it’s been inspiring to see a record number of hospitality employers stepping up to pay the real Living Wage. Paying the real Living Wage isn’t just the right thing to do for workers, it makes business sense too. It boosts staff morale, improves retention and recruitment, and creates a more sustainable future for the industry.

“Our new toolkit offers practical advice and tells the stories celebrating Living Wage Employers in the hospitality sector. We are proud to celebrate those who are paying a real Living Wage in hospitality, thanks to their commitment they are changing the industry for the better.”

Employers can access the Hospitality Toolkit on the Living Wage Foundation website. There is more information about accrediting as a Living Wage Employer.

Information about the real Living Wage:

• It is the only UK wage rate based on the cost of living, and is currently £13.85/hr in London, and £12.60/hr in the rest of the United Kingdom. A full-time worker earning the new, real Living Wage would earn over £2,000 year more than a full-time worker earning the current minimum wage (National Living Wage). In London, this rises to over £4,700 a year.
• There are currently more than 15,000 Living Wage Employers across all industries, including the likes of Aviva, KPMG and Ikea. There are 621 accredited hospitality employers including Curzon Cinemas, Sunborn Hotel and Human One Global. View a full list of Living Wage Employers.
• Over the last 12 years the hospitality sector has remained the sector with the highest proportion of jobs paying below the real Living Wage. The toolkit includes the stories of hospitality workers struggling to make ends meet on the minimum wage and those working for Living Wage Employers enjoying higher levels of security and wellbeing.
• As one of the fastest growing industries – and one which includes iconic employers within the night time economy within towns and city centres – hospitality plays a key role in our national and local economies. A sector that has been dogged by poor pay practices, the Living Wage Employers celebrated in the toolkit are changing the perception of the industry and creating quality jobs and professions.