96 per cent of Scottish SMEs support Living Wage

A survey carried out by the organisation generated 200 responses from employers within the Business for Scotland membership (almost 4,000) and found overwhelming support for paying the living wage; 96 per cent or 191 respondents.

A total of 123 or 75 per cent of the employers currently pay the Living Wage or higher.

Many respondents supplied details suggesting they paid young people and apprentices in particular above the Living Wage, with more than one company setting their own minimum wage at 20 per cent above the Living Wage.

Gillian O’Neil, of 29 Studios, said: “At 29studios and 29steps we pay even our youngest trainees well above the Living Wage and the commitment we show to our team is matched by the amazing commitment we receive from them.

“When you treat your employees with respect, in both the remuneration and the working environment you provide, you create a happy workforce who feel valued, and thus the business benefits are huge.

“I would urge other business owners to stop and think; try renting a house or paying a mortgage on the minimum wage. Try covering your childcare costs and your living costs on the minimum wage. Try loving your job when you don’t feel valued. It’s impossible, so why expect your employees to do it?”

Ian McDougall of McDougall Johnstone, added: “Low wage and productivity levels are the biggest drag on the UK economy and are the reason that the UK deficit is static. We operate in a global marketplace and if we wish to compete internationally then we have to start paying wage levels that provide employees with a reasonable standard of living.

“It is the biggest scandal of modern times that hard working families on full time contracts still have to put their hand out to the government just to pay their rent and feed their family.”

The most common reason given by Business for Scotland employers for paying the Living Wage was to motivate employees and show that the company values them; the result is increased motivation, loyalty and productivity. The second most popular reason given was that it makes economic sense; if all companies were to pay the Living Wage this would actually grow the economy and cut welfare costs.

A statement issued with the findings said: “Business for Scotland has set a target of 100 employers to become accredited Living Wage employers in 2015, and challenges other major business networks to generate a similar percentage of their networks to make this commitment.

“This would mean that the Scottish Government’s 500 target will be significantly surpassed.”