GN 9.2: Living Wage Foundation certified services
Guidance Note purpose
The purpose of this Guidance Note is to provide asset managers, property managers and facilities managers with information relating to the Living Wage and the inclusion of Living Wage-certified services.
Context
The Living Wage Foundation is an organisation which ‘celebrates and recognises the leadership of responsible employers who choose to go further and pay a real Living Wage based on the cost of living, not just the government minimum1.’
The living wage focuses on the concept that the statutory minimum wage boundaries set by the UK Government are below what is realistically required for an acceptable standard of living. The rates are calculated annually, based on available evidence about living standards in London and the UK.
The Real Living Wage surpasses the National Living Wage and the National Minimum Wage.
Adopting the Real Living Wage involves a commitment applied to direct employees, but does not require this to be applied to interns, apprentices and volunteers. The commitment requires that employees who work for two or more hours per day, for eight or more consecutive weeks of the year, must be paid the Real Living Wage in relation to the cost of living in the local area.
There is no requirement to ensure that an organisation’s supply chain pays the Living Wage. However, organisations that commit to it are encouraged to communicate this to their supply chain and, in the context of commercial real estate, to promote the Living Wage on site.
Importance
There are a range of business benefits associated with the living wage. Employers that sign up to adopt the Living Wage may experience, for example:
- Enhanced employee motivation.
- Increased productivity.
- Better recruitment and retention rates.
- Positive relations between management and employees.
- Positive reputational benefits, so that the organisation stands out in the industry.
Responsibilities & Interests
The table below summarises the key activities associated with the Living Wage, and highlights where asset managers, property managers and facilities managers are likely to have a responsibility or specific interest.
- AM - Asset Manager
- PM - Property Manager
- FM - Facilities Manager
Step 1: Assessing the viability of paying a Living Wage
Stakeholder:
Step 2: Procuring Living Wage-certified Services
Stakeholder:
Step 3: Ongoing monitoring
Stakeholder:
How to
Related Guidance Notes
The following Guidance Notes contain related information:
- GN2.3: Sustainability reporting initiatives
- GN8.1: What is social value?
- GN8.2: Social value opportunities
- GN8.3: Embedding social value in the supply chain
- GN9.1: Modern slavery act
- GN9.3: Embedding sustainability within waste services
- GN9.4: Embedding sustainability within M&E services
- GN9.5: Embedding sustainability within cleaning services
- GN9.6: Embedding sustainability within security services
- GN9.7: Embedding sustainability within landscaping services