Andrew Taggart: What are the challenges and rewards of offering a living wage?

It pays for employers to consider remuneration throughout the spectrum of their organisation, particularly at a time when the government is proposing significant reform of executive remuneration to enhance shareholder voting power on directors’ pay, by introducing a binding vote on future pay.

Making a public commitment to pay the London living wage shows true corporate responsibility at a fundamental level. It sends a message that the organisation values and respects its staff.

The living wage is defined as a wage that can meet people’s basic needs to maintain a safe, decent standard of living within the community, and have the ability to save for future needs and goals. Paying this is the right thing to do.

Increasingly, employers are recognising that it makes good business sense to commit to the London living wage, as well as it being the decent thing to do. Living wage employers report improved morale, lower staff turnover, reduced absenteeism, increased productivity and improved customer service.

We are delighted to be one of more than 100 employers accredited under the living wage campaign.

Being a London living wage employer demonstrates our commitment to this important issue.

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We believe people should be treated with respect. It makes perfect sense to pay the living wage to our employees and contracted staff. It also helps our business to retain the best people.

Andrew Taggart is partner and head of UK employment at Herbert Smith Freehills