Firms advised to take simple steps now as poll reveals 93 percent of bosses support initiative, with majority believing it will boost productivity and retain staff.
Britain’s bosses are urged to take four simple steps to be better prepared for the introduction of next year’s new National Living Wage (NLW), on the day that the statutory instrument is laid to write it into law. Businesses are being advised to prepare early for the changes on 1 April 2016, when the new wage will become law, and make sure they follow these four simple steps: Know the correct rate of pay – £7.20 per hour for staff aged 25 and over; Find out which staff are eligible for the new rate; Update the company payroll in time for 1 April 2016; Communicate the changes to staff as soon as possible.
Employers can find out more by visiting www.livingwage.gov.uk The advice coincides with a new poll which revealed 93 percent of bosses agree the new wage is a good idea, with 88 percent believing it will lead to higher productivity and 83 percent saying it will make staff more loyal to their firm.
Business Minister Nick Boles said: “The Government’s new National Living Wage will provide a direct boost to over two-and-a-half million workers in the UK – rewarding and providing security for working people. “I am urging businesses to get ready now to pay the new £7.20 rate from 1 April 2016. With just under four months left, there are some easy steps employers can take to make sure they are ready. “By taking these measures, companies will be able to properly reward their staff and avoid falling foul of the law when it takes effect.”
The new survey conducted for the Department for Business, Innovation and Skills (BIS) asked 1,000 employers across Britain about the NLW. When asked if they thought the new rate would be good for businesses, many respondents identified a range of positive impacts:
93 percent of all bosses agreed the National Living Wage was a good idea
88 percent said it would make staff more productive
83 percent believed it would make staff more loyal towards their employer
86 percent said it would boost staff morale
82 percent believed customers were likely to return if the business paid the right rates of pay.
Despite the popular support for the measure, the poll also revealed that many firms were yet to take key steps to be prepared: Only around 45 percent had updated payroll to take account of staff aged 25 and over on 1 April 2016. Just 39 percent had communicated the upcoming changes to staff. Only 29 percent had looked online for more information about National Living Wage entitlement.
This comes despite 63 percent of bosses saying they knew who in their business should be getting the new National Living Wage. The new National Living Wage is a key part of the Government’s plan to continue to move to a higher wage, lower tax and lower welfare society, building a more productive Britain and giving families the security of well-paid work.