HR FOCUS
WHAT YOU SHOULD KNOW ABOUT LIVING WAGE
Scott Newland, Chief Operating Officer at European Customer Synergy,
discusses the FM sector benefits and challenges presented by the government’s compulsory National Living Wage.
With the facilities management (FM) industry employing approximately 10% of the UK’s working population, the service provided by the sector is a vital component in the nation’s day- to-day operation.
As an industry, we are often presented with new government rules and regulations, all of which have the intention of improving aspects of FM service provision, whether it be to benefit the wellbeing
50 | TOMORROW’S FM
of an office worker, the safety of a machine operator or to improve our C02
emissions. But, what about
the benefits of the new compulsory National Living Wage?
The Resolution Foundation, in partnership with the CIPD, estimates that the new National Living Wage will increase wages for more than half of all employers, affecting six million people and adding £760 annually to pre-tax wages.
The introduction of the National Living Wage will also undoubtedly impact the FM industry. Approximately 85-90% of the cost of outsourced facilities management services will go towards covering the cost of staffing, meaning the increase to wages will have a significant effect on base costs.
Already, many FM organisations have pledged to pay the £7.20 per hour (for employees over the age of 25) living wage and are reaping the rewards of
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