FEATURE
We are fully aware that wages make up a significant proportion of contract costs and it is not a simple case of paying more without consequences. Either the overall cost of the contract has to rise or savings need to be made elsewhere.
We’ve developed detailed and innovative working models to show how the impact of paying the Living Wage can be mitigated, but longer term greater changes to working practices will be required. This could also include other services that could come under the cleaning banner, nothing should be ruled out as we try to protect jobs, costs and service delivery.
“We need to see more companies willing
to be disruptive and take the chance to
improve people’s lives. There are compelling reasons to do so.”
FIVE CLEAR BENEFITS
TO FAIR PAY In the meantime, there are still clear business benefits to paying the Living Wage now. These include:
1. Easier recruitment: more people want to work for the higher rate and people tend to stay in their jobs longer, so recruitment costs are reduced.
2. Low attrition rates: greater longevity and engagement can show itself though better teamwork and increased morale within the team.
3. Better skilled workers: investment in training brings a better return when workers are committed to their role, as they are more likely to implement new working practices effectively, and will more often be part of the team for longer, ensuring continuity. With lower staff turnover, training can be more in-depth and progressive rather than repeating basic instruction.
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4. Better productivity: lower attrition and better skills in turn improve productivity and service levels; nobody wants to be the weak link in a good team.
5. Happier clients: they receive a better service as cleaning operatives are more committed to their tasks, have a better understanding of a client’s needs and are more likely to engage in issues rather than just doing the minimum amount of work in return for the minimum amount of pay. For instance, this can mean they report problems, such as a leaking toilet, rather than potentially ignoring it as it’s not necessarily part of their job.
All these factors combine to mean improved service levels and cost- efficiencies which should outweigh the increased cost of wages.
ONGOING RISES The introduction of the NLW is not the end of the issue. The government’s ambition is for the wage to reach 60% of a typical (over- 25) worker’s hourly wage by 2020. For this to happen, the Office of Budget Responsibility estimates that the NLW will have to rise from £7.20 an hour to around £9.35. This is still below the Living Wage Foundation’s current London Living Wage level of £9.40 which is also likely to rise.
Something has to give or the rises become unsustainable; greater efficiency will be required through better working practices. It is likely the cleaning industry will need to introduce increased automation for certain tasks such as vacuuming and mopping. These currently take up a large part of a cleaning operative’s time, so technology could make a significant contribution to improved efficiency.
Technology also offers the opportunity for better prioritisation. By using the emerging building technology and the ‘Internet of Things’ – the network of physical objects (devices, buildings and other items embedded with electronics, software, sensors, and network connectivity) – cleaning companies will be able to better plan and prioritise work.
WHAT’S NEXT? The number of direct employers paying the Living Wage is now over 2,300 and there are 67 Recognised Living Wage Service Providers (like Facilicom). We like to see more companies taking the step to pay the fair wage.
“Increasing low-
paid workers pay to a level where they
can afford to live is an important first step to improving their wellbeing.”
There is always a risk that the wage increases will lead to job losses and industry developments such as increased automation are also likely to lead to a reduction in the number of people employed as cleaning operatives. However, on the positive side, this should also result in better treatment and reward for those who do work in the industry.
All too often, low paid workers are given very little consideration due to their limited visibility. The majority still work outside normal hours and have little or no interaction with other people in the business. This is despite the fact that without cleaning, buildings would be closed on health and safety grounds.
Increasing low-paid workers pay to a level where they can afford to live – i.e. paying the Living Wage – is an important first step to improving their wellbeing, but it is also a step towards better team work, service and greater client satisfaction.
Raising the profile of the importance of cleaning will help the industry develop innovative solutions and improve standards.
www.facilicom.co.uk Tomorrow’s Cleaning May 2016 | 85
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