When employees struggle financially, they often take on several jobs to make ends meet. Compensating employees with a living wage reduces worker strain and can bolster productivity, morale, and loyalty.
Employees paid low wages will constantly be looking for another job with higher pay. The cost of replacing employees is significant in terms of administration and training, and could impose a much higher cost on employers than paying a living wage.
Paying a living wage decreases stress, which is the most significant cause of employees being sick. Stressed employees are more likely to spend more on prescription drugs, and elevate absence costs, disability costs, and turnover costs.
Living wage employers are considered “ethical businesses.” Corporate responsibility is a key factor in attracting and retaining a talented and diverse workforce and reduces the cost associated with employee recruitment.
Small businesses draw their customers from the local community. Higher incomes allow families to purchase more goods and services in their neighbourhoods.