Businesses around the UK are already feeling the additional hidden costs of the Living Wage.
Whilst many support the initiative and understand why it was introduced, there are now increasing reports of companies experiencing costs over and above the labour cost associated with the increase.
For example, other staff within organisations are demanding wage increases to maintain the differential associated with skills and position in the structure. Additionally businesses have reported instances where attempts have been made to pass the cost of meeting the Living Wage on to customers and suppliers, alike, within the supply chain. Thus the impact is proving to be larger than what was budgeted for.
Our experience has shown that the real counter to such pressures is to carry out nothing short of a quantum improvement in productivity within the operations, a task that traditional improvement approaches can not meet. If you would like to share in our experience please contact us below.