Living wage

How are you dealing with introducing the Living Wage?

The Living Wage will dramatically increase labour costs and financial pressure across all sectors, many of whom are under considerable financial strain already.

Applied Acumen have delivered successful programmes which have removed this pressure to the extent that customers have gained benefits significantly higher than the increased labour cost, showing record profits despite the implementation of the new wage.

During 2015 our clients enjoyed an average reduction in direct labour costs of over 30%.

  • A £38 million turnover business with a direct labour cost of 10.2% of sales approached us.
  • The impact of the new Living Wage would have added a cost of £818,000 by 2020.
  • In the first year alone Applied Acumen’s work resulted in a reduction of £1.2 million NET.
  • Our client’s financial exposure was £30,000

We had tried a few approaches in the past, but this was very different, better crafted and based on our people.

 

Managing Director