62% of under-25s would be more loyal to employer if paid national living wage

Brenda Morris 430

Almost two-thirds (62%) of respondents aged 16-24 would be more loyal to their employer if they were to receive the new national living wage rate, which is only statutory for employees aged 25 and over, according to research by workforce management firm Kronos.

Its survey of 2,020 employees over the age of 16, also found that 36% of respondents over the age of 55 believe their sense of loyalty to their employer will increase as a result of the new national living wage.

The research also found:

  • More than two-thirds (67%) of all respondents say they would be more loyal to their employer if it had introduced the national living wage rate ahead of the April 2016 deadline.
  • 71% of respondents believe organisations will increase pay for all staff, rather than just applying the new national living wage rate to those aged 25 and over.
  • More than half (57%) of respondents expect management to demand higher levels of productivity in return for the higher rate of pay.
  • 58% of London-based respondents say their commitment to their employer will increase as a result of the national living wage.

Brenda Morris (pictured), general manager UK at Kronos, said: โ€œThe national living wage will force organisations to look at productivity and how to maximise the value from what is often regarded as an organisationโ€™s most valuable asset, its people.

โ€œWhile, ultimately, organisations need to focus on productivity, just paying employees more will not necessarily drive productivity gains.

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โ€œItโ€™s critical that organisations look closely at the wider benefits that motivate their workforce and how they can tap into these to boost overall performance and profitability.โ€