Paying the Living Wage Could Help Your Worker Shortage

 16 Sep 2021

The UK´s employers are struggling with the worst labour shortage since 1997 amid a sharp drop in overseas workers due to Brexit and COVID. According to the Recruitment and Employment Confederation (REC), there are currently more than 1.6 million vacancies, which is due to rise in the coming months.

Recruitment firms are reporting hiring challenges across several job types, including HGV drivers, cleaners and domestics, carpenters and joiners and software development professionals.

With such a chronic shortfall in the number of applicants, job seekers can afford to be selective in who they will work for in their next job. Candidates have a longer list of prospective employers and will take up positions that offer the best exchange for their labour.

Companies are screaming out for people and will most likely have to pay more to attract them, which will mean at the very least offering the Living Wage. This is the minimum income necessary for a worker to meet their basic needs.

As well as being good for employees and society, paying the Living Wage has many business benefits. These include a reduction in staff turnover, reduced spending on training and recruitment, improved staff morale and workforce stability, which helps companies maintain a steady performance.

Principal Advantages of Workforce Stability

 The main advantages of having stable work teams are:

 Better Working Relationships

Strong relationships are often critical to job performance, where trust between employees is necessary to achieve company objectives. When teams have been together for a while, they´ve had time to bond and know how to work together well. They possess a wonderful team spirit because members care about each other.

Better Team Performance

When employees know they will be working with each other for a long time, they tend to streamline processes to make things more comfortable for themselves. Over time, stable teams have learned the best ways to get a job done and how to optimise their operations for better results. For example, teams of cleaners don’t waste time looking for light switches, plug sockets or asking where to find things. 

Stable teams also tend to engage in continuous development processes where they discuss what is working well and what can be improved next time.

Better Customer Knowledge

Understanding a client´s point of view is not always easy and it can often take a lot of time before you´re able to discern their real needs. Stable teams get to know their clients well, understand their pain points fully and can develop the most appropriate solutions. They don´t have to guess.

Lower Team Formation Overheads

You´re forming teams far less often, which can be a big money saver. These funds can be invested in more extensive training to equip team members with more skills and improve performance even more.

Turning A Crisis Into An Opportunity

The UK labour shortage is giving companies a golden opportunity to attract excellent and enthusiastic workers. With higher wages and good working conditions, prospective employees will be motivated to stay for the long term, helping organisations achieve their goals.


The National Living Wage

·         Set by the UK government

·         £8.91 an hour to workers over the age of 23

·         Compulsory


The Living Wage

·         Set by the Living Wage Foundation

·         £9.50 an hour (UK rate) and £10.85 an hour (London rate)

·         Voluntary

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