93% of employers are in support of the new National Living Wage (NLW), believing it will boost productivity and retain staff.
A survey conducted by the Department for Business, Innovation and Skills (BIS) asked 1,000 employers about the NLW.
The survey found that:
- 93% think the NLW is a good idea
- 88% said it will make staff more productive
- 83% said it will make staff more loyal towards their employer
- 86% said it will boost staff morale
- 82% said customers are likely to return if the business paid the right rates of pay.
Businesses are being advised to prepare for the introduction of the NLW on 1 April 2016 for employees aged over 25. Employers will need to know the following steps:
- find out which staff are eligible for the new £7.20 rate
- update the company payroll in time for 1 April 2016
- communicate changes to staff.
Although there is strong support, the survey also found that many businesses were yet to take key steps to prepare for NLW.
45% of those surveyed had updated their payroll to take account of staff aged 25 and over. 39% had communicated the upcoming changes to their staff, and 29% had looked online for more information about NLW.
Business minister Nick Boles, said:
“I am urging businesses to get ready now to pay the new £7.20 rate from 1 April 2016. With just under 4 months left, there are some easy steps employers can take to make sure they are ready.
“By taking these measures, companies will be able to properly reward their staff and avoid falling foul of the law when it takes effect.”