Becoming a Living Wage employer is good for business

Pictured (L-R) are Mary McManus, Regional Manager, Living Wage NI and Alan McKeown, Executive Director of Regional Business, Invest Northern Ireland 

According to the Living Wage Foundation, becoming a Living Wage Employer extends far beyond ethical and social considerations. It can help attract and retain talent and enhance business performance, proving to be a sound financial and operational decision.

Yet, according to research carried out for the NI Assembly, in Northern Ireland in 2023 almost 16% of jobs pay below the Living Wage, making it one of the highest regions in the UK. Within this figure 18% of females earn below the threshold compared to 13% of males.

Paddy Robb, our Environmental, Social and Governance Lead, outlines why Northern Ireland businesses should become Living Wage employers.

Paying a Living Wage (a rate calculated independently by the Living Wage Foundation to meet the cost of living) directly impacts an employee’s financial security and overall wellbeing. According to research from the Living Wage Foundation, businesses that pay the Living Wage see a marked improvement in employee morale, motivation, and overall job satisfaction.

This leads to higher productivity levels, which directly contribute to improved business performance. As the Foundation’s research shows, the result is not just a happier workforce, but also a more efficient and profitable business.

In a tight labour market, offering a Living Wage can be a key differentiator. Talented individuals are drawn to companies that value their employees and demonstrate this through fair pay. Employees who feel valued are more likely to stay with the company, reducing turnover rates. 

By paying a Living Wage, businesses can foster greater loyalty, reducing the churn and associated costs of constantly replacing staff. 86% of Living Wage employers in the UK say that accreditation has boosted their reputation as an employer.

Today’s consumers are more socially conscious than ever before. They increasingly prefer to support businesses that align with their values. Becoming a Living Wage employer sends a powerful message to customers that your company is committed to ethical practices.

This commitment can enhance your brand’s reputation, leading to increased customer loyalty. In Northern Ireland, where word-of-mouth and community ties are strong, this can have a significant positive impact on your business.

Northern Ireland has a deep sense of community, and businesses are often seen as pillars within their localities. By paying a Living Wage, businesses contribute to the economic health of their communities. Employees with higher incomes are more likely to spend money locally, supporting other businesses and services. This creates a virtuous cycle of economic benefit that strengthens the entire community.

While some businesses may be concerned about the immediate cost implications of paying a Living Wage, the long-term financial benefits often outweigh these concerns. Companies that pay fair wages experience lower absenteeism, reduced turnover, and higher productivity—all of which contribute to improved financial performance. 

For Northern Ireland’s businesses, where economic growth and sustainability are key concerns, becoming a Living Wage employer can also attract investment. Investors increasingly seek companies with strong ethical credentials and being accredited by the Living Wage Foundation can enhance your appeal to socially responsible investors.

Paying a Living Wage is a powerful way to align your business with the interests of your employees, customers, and the broader society. 

For local businesses looking to thrive in a competitive environment, accreditation as a Living Wage employer offers a clear path to success. It’s an investment in people that pays dividends in productivity, loyalty, and brand strength - key ingredients for sustained business growth. Accreditation as a Living Wage employer also aligns with the Economy Minister’s economic priorities to support good jobs and raise productivity within the Northern Ireland economy.

In line with our Environmental, Social and Governance Strategic commitments, Invest NI has recently gained its own accreditation as a Living Wage employer. This accreditation ensures all our employees and contractors are paid above the Living Wage threshold. Invest NI is one of the first 100 employers in Northern Ireland to receive accreditation and we would encourage all businesses in Northern Ireland to do the same and reap the benefits the accreditation brings.

If you would like to find out more about becoming an accredited Living Wage employer you can register for the Living Wage event which is hosted by Living Wage NI in our Invest NI HQ in Belfast on Tuesday 5 November.