Hotels are being encouraged to adopt the London Living Wage

Hotels are being encouraged to adopt the London Living Wage

There is no denying that the cost of living in London is higher than elsewhere in the UK, meaning that many staff struggle to maintain an adequate standard of living on the minimum wage. This is why many companies offer the London Living Wage, which currently stands at £8.30 an hour compared with the national minimum wage of £6.08, and now hotel chain IHG has joined the ranks of companies looking to pay its staff in the capital the higher rate.

The chain, which has eight hotels in London, is the first hotel group in the UK to lend its support to the scheme and, as a result, around 850 staff will see their wage packets go up. The decision was welcomed by London mayor Boris Johnson who said:

"Not only does it foster a loyal and hardworking workforce, it can help lift people out of poverty and give them a proper reward for their labours."

However, with many hospitality businesses suffering in the current economic climate, it does raise the question of whether any other hotels will be able to follow its example.

The benefits of adopting the London Living Wage are evident, it helps boost morale among workers and will also help companies attract and retain the best staff as they won't be as tempted by higher pay packets elsewhere. This means that while businesses will have to up their outgoings in order to give staff a pay rise, it could be a worthwhile investment if it means they have a highly-skilled enthusiastic workforce, something which is ever more important as customers tighten their purse strings.

Mr Johnson has pledged to work with London Citizens to encourage five hotel and hospitality employers to adopt the Living Wage over his current term in office, and businesses will certainly have to think about whether or not the cost of rising wages is outweighed by the many benefits it brings.
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