While researching Employer Branding I read an article last week about the Nationwide Building Society offering some of its staff the National Living Wage (NLW) as opposed to the National Minimum Wage (NMW, it seemed to me that it instantly added to a positive image which in turn would boost their Employer Branding rating. I will expand that point later in this article but first, you may be asking ‘’What is the NLW and what is the difference between it and the NMW?’’
The National Minimum Wage versus The National Living Wage
If you subscribe to our Managers Toolkits you will know that the NMW stands at £6.50 per hour whilst the NLW is £7.65 per hour (the New London rate is £8.80). This is a calculation reflecting the real cost of living, based on the maxim “a hard day’s work for a fair day’s pay” and the difference is that the NLW is more than the NMW. It may not look like a big difference but if a person works and gets paid 8 hours per day, it amounts to £5.75 per day or £28.75 extra per week. Even with deductions it is still a decent increase and paying the NLW will improve the company’s employer branding.
The Certified Institute of Personnel and Development (CIPD) states ‘’Employer branding promotes the attributes and qualities, often intangible, that make an organisation distinctive, promise a particular kind of employment experience and appeal to those who will thrive and perform best in its culture’’. (2013)
For more resources on Employer Branding see the CIPD website or give me a call on 07803 209860 because we work with clients to help them assess and improve their Employer Branding.
Employer branding can help your company in many ways and one of them is to be able to compete effectively in the white water rapids of the job market, where companies are competing for a shortage of talent, especially in some industries, such as engineering; and then once the talent is acquired, they need to be retained and productive, in other words having the ‘’Google effect’’.
Paying the NLW certainly improved the Employer Branding of the Nationwide for me, because I immediately said to my wife, ‘’we must change our savings to the Nationwide, because they obviously care about their staff’’. But it goes further than me, as a potential saver, it has an impact on a variety of stakeholders, because if other people feel the same way about what the Nationwide have done, it will surely have a positive impact on their profits.
Paying the NLW can be an important part of a company’s reward and benefits strategy, but it is only one aspect. One of the things we have done regarding rewards and benefits, which has proved very successful, is with our friends at IQ Health and Fitness, given gym membership to staff. Not only does this give us healthier and more engaged staff, it improves our image and is good for profit. It has worked for us and I am sure focussing more on rewards and benefits will also work for you.
Why not give your staff the best you can and improve your employer branding and profits?
Further reading: Linkedin survey ‘New Research Reveals a Disconnect Between Employer Branding Focus and Measurement’.