What benefits or problems arise for employers that pay a Living Wage?
Team 6 – Small Business Research
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- What are the benefits of becoming a certified living wage employer?
- Are there negative consequences as well?
- Can those impacts be quantified in terms of how they help/hurt organizations?
Summary of Research Findings:
The research and interviews conducted by this team revealed that being living wage certified does not seem to have significant impact on the public profile of a company. It does have an impact on the participating companies as relates to their ethical values. Living wage certification does not appear to have a significant impact on employee retention and for part-time employees it comes with a high price tag for employers and requires significant thought regarding the balance of compensation vs public benefits.
It goes without saying that there is significant increase in overhead which depending on the organization could be in the tens to hundreds of thousands. The conclusion of Team Six was that employees might actually be more satisfied with options, other than a living wage, that benefit them when it comes to housing, healthcare, childcare or transportation and at the same time provide cost savings to their employer.