Living Wages Strengthen Employees and Businesses
Report links living wages to business resilience, stability, and growth
June 6, 2022
The obvious benefit of living wages is that it helps lift low-income workers out of poverty and addresses inequalities in society. Perhaps a less obvious benefit is that living wages also support business resilience, stability and growth, according a report from the University of Cambridge in Cambridge, United Kingdom.
Globally, 266 million workers earn wages below the minimum wage. The global population of workers living in households below the poverty line reached 630 million in 2019. The report found living wages are a route out of poverty and also result in a more motivated and productive workforce, with lower staff turnover, European Business Journal reports.
Benefits to businesses include:
- Improved revenues and profits
- Increased value chain resilience and performance
- Enhanced business reputation
- Improved investor prospects
- Readiness for future regulatory reporting.
“This report highlights the need to reshape the narrative on living wages. Paying a living wage is an opportunity for companies to have positive social impact at scale, in a way that benefits their business as well as their employees, people in their supply chains, and the communities in which they operate,” said Zahid Torres-Rahman, co-founder and CEO at Business Fights Poverty. “Living wages are a clear and measurable indicator of companies putting values and social purpose at the heart of their business practice.”
Learn more benefits of living wage programs.
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