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Living Wage vs Minimum Wage

The newspapers are starting to cover more stories on the Living Wage as a must for employers rather than the minimum wage.According to the Living Wage Foundation this is currently £7.65 and £8.80 for London.This is £1.34 more than the minimum wagehttp://www.livingwage.org.uk/homeHow do we think landscaping shapes up ?If we want a skilled and motivated workforce in our industry how do we perform on wages.( and before anyone asks Marshalls pays it's employees above that rate )Thoughts ?

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  • I forgot to add that research by the Greater London Authority showed that once employees were paid the living wage their productivity went up, with 80% of employers reporting increased work rates ...
  • PRO

    London's Poverty Profile
    http://www.londonspovertyprofile.org.uk/indicators/topics/low-pay/

    Key points

    • In 2012 just under 600,000 jobs in London were low paid (paid less than the London Living Wage of £8.55 per hour). In 2007 420,000 jobs were low paid (when the London Living Wage was £7.25 per hour).
    • The percentage of jobs paid less than the London Living Wage was around 13% between 2005 and 2010, but by 2012 it reached 17%. This reflects a trend seen across the earnings distribution: the cost of living is growing faster than earnings, so as prices increase more jobs fall below the low pay threshold.
  • Latest figures show that in the UK 5.24 Million people earn less than the living wage ... And they say we have a productivity problem ...
  • PRO

    Did anyone watch Digby Jones - The New Troubleshooter - last night?

    He put huge emphasis on employing the right talent and paying them the right wage.

    Digby Jones used the saying 'surround yourself with people who are better than you'.

  • Thought the Digby Jones show was really inspiring Phil. Very impressed by some of the people on it. Related to the living wage, I have been wondering about a profit sharing or bonus scheme for my employees - does anyone have any experience of this? I just feel like they should be rewarded when they go the extra mile to get something done... it's all very well me leading by example and pushing pushing pushing, because I know what the reward is for getting that extra bit done, but I don't want the guys who help me to go unrewarded for it themselves.

  • I've always thought the same as you Doug.

    In an ideal world I'd love to run my business on the same lines as John Lewis. Just not sure how to do it yet.

    Doug said:

    Thought the Digby Jones show was really inspiring Phil. Very impressed by some of the people on it. Related to the living wage, I have been wondering about a profit sharing or bonus scheme for my employees - does anyone have any experience of this? I just feel like they should be rewarded when they go the extra mile to get something done... it's all very well me leading by example and pushing pushing pushing, because I know what the reward is for getting that extra bit done, but I don't want the guys who help me to go unrewarded for it themselves.

  • We have an ad on LJN for a " young, enthusiastic, skilled labourer", £7 per hour.

    Also, someone wanting a very skilled professional, in London, for about £10 per hour:

    "experienced, motivated and reliable landscape gardener to work as a team leader, building gardens to a very high standard. The candidate must have at least five years hard and soft landscaping experience and be able to demonstrate a high standard of workmanship. Both construction and horticultural skills and expertise are vital to this job as you will be carrying out a wide range of work."

    Perhaps we should look to what we are paying our staff, before we join the "living wage" debate?

  • The trouble I find is large companies looking for skilled staff and all they pay is £6.60 an hour. Most skilled people will have no enthusiasm and that would reflect on the work they do. A profit sharing sceme or even a bonus at the end of the month would push most people into doing a good job and doing it quickly. Im not sure how they work but its still got to be better for employers and employees alike.
  • £10 an hour for a very skilled professional you have to be joking. No wonder theres a shortage of skilled people coming into the industry. If you pay a decent rate you get a decent job done and have a happier working environment. When working in London I pay a minimum of £15 an hour up to £18 an hour depending on the work.

  • PRO

    Hi Gordon, is that rate paid to an employed person (ie employee) or a subbie ?

    If an employed person, how do handle the differences in pay, if you're working in a less affluent area ? Do they get different rates of pay depending on the job ? Employer costs @ £18 p/h, grossed up is ~£37.5k + employer NI + £overheads£

    Fully endorse the need to pay more, but does go hand in hand with the need to educate and have customers accept the need to pay a reasonable rate.

    It so frustrates me when our own industry endorses charging cheap rates and undermines the skills needed to run a business and provide a service.

    Unfortunately, we (some) are our own worst enemies...

    Gordon Bowerman said:

    £10 an hour for a very skilled professional you have to be joking. No wonder theres a shortage of skilled people coming into the industry. If you pay a decent rate you get a decent job done and have a happier working environment. When working in London I pay a minimum of £15 an hour up to £18 an hour depending on the work.

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