Addressing an audience of business leaders and politicians as part of KPMG’s support of “Fair Pay Fortnight”, KPMG’s director of public policy David Gardner highlighted the importance of organisations acting responsibly and paying employees and contracted staff a living wage.
Speaking in Newcastle office to delegates at the North East Living Wage event chaired by Guy Opperman, the MP for Hexham, he said: “Fair pay isn’t just fair play. Offering staff and suppliers a living wage can improve engagement and help people earn enough to afford the basics. “From a business perspective, evidence suggests it’s also good for productivity. At KPMG, for example, we have seen that becoming a living wage employer has helped improve retention and reduced recruitment, training and sickness costs amongst staff and contractors employed by our suppliers.” Impact of low payDiscussing the impact of low pay, Gardner noted that 5.2 million people – approximately 20 per cent of the UK’s working population – are now paid less than the living wage. According to a study from KPMG, half of those earning below this level expect their finances to worsen over the next 6 months. “The principle of fair pay cannot be ignored. Yet figures suggest that there are still too many people across the UK earning too little, making Fair Pay Fortnight the perfect opportunity for employers to consider whether they can join the growing list of businesses paying a Living Wage,” he added. “It may not be possible or practical for everyone, but all organisations need to do what they can to address the problem of low pay. Of course, change cannot happen instantly, but making an initial assessment is an important first step.”
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.