WIREDGOV

• 8 out of 10 people “would not use the services of a business if they found it paid less than National Minimum Wage”, while 90% called those employers a “disgrace”
• businesses that pay the right rates see more productive staff; 8 in every 10 people admit to “not working as hard” if they are underpaid
• employers who do not comply with the National Minimum rate changes that came into effect on 1 October 2013 or fail to spot differences in their workers are at particular risk of a financial penalty and being publicly named

• 8 out of 10 people “would not use the services of a business if they found it paid less than National Minimum Wage”
• almost the same amount (79%) would encourage family and friends to do the same, while 9 out of 10 people called employers who pay less a “disgrace”
• underpaying staff was also found to breed resentment, low productivity and high employee turnover. Eight out of 10 workers would “not work as hard” if they knew they were underpaid, not surprising when 90% said they would actively resent their employer. The vast majority (85%) would seek other work.

Most employers are responsible and pay their staff properly. Government is cracking down on those few rogue companies who are not doing the right thing and breaking the law by underpaying their staff. Employers should be well aware of the different rates for the National Minimum Wage depending on the circumstances of their workers. Ignorance is no excuse. If employers are unsure, they should call the Pay and Work Rights Helpline on 0800 917 2368 or visit GOV.UK for free advice and information.

Employers who fail to pay workers the right amount will face a financial penalty, be publicly named and shamed and may even be prosecuted. Today’s research also shows the impact on staff productivity and a business’ reputation of underpaying workers. Businesses can’t ignore this issue and stick their head in the sand.

• the adult rate increased by 12p to £6.31 an hour
• the rate for 18 to 20 year olds increased by 5p to £5.03 an hour
• the rate for 16 to 17 year olds increased by 4p to £3.72 an hour
• the apprentice rate increased by 3p to £2.68 an hour
• the accommodation offset increased to £4.91

If you run a business, there is a lot to get your head around. Payroll in particular can be confusing. Despite that, ensuring that your employees are being paid correctly should be at the top of your priority list. Everyone deserves the National Minimum Wage as a minimum and if you aren’t paying it you are breaking the law. BIS enforces this law and if caught, you will face fines and public naming, which can hit your bottom line hard and even sink a small business.

On the flip side, employers who pay correctly enjoy better local and industry reputation and more motivated, hardworking staff. At Right at Home we are working hard to ensure our ‎policies keep pace with changes in legislation and that we fully comply with the National Minimum Wage. Our staff are our biggest asset and complying with National Minimum Wage is essential to where we are today and our future growth.

1. Populus interviewed 2,014 adults in Great Britain online between 2 and 3 October 2013. Results have been weighted to be representative of all GB adults. Populus is a member of the British Polling Council and abides by its rules. For more information see the Populus website.

2. Links to National Minimum Wage (NMW) naming scheme and new NMW rates press notices can be found on the GOV.UK site.

3. The government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries’. It set 4 ambitions in the ‘Plan for Growth’, published at Budget 2011:

• to create the most competitive tax system in the G20
• to make the UK the best place in Europe to start, finance and grow a business
• to encourage investment and exports as a route to a more balanced economy
• to create a more educated workforce that is the most flexible in Europe