Retailers play waiting game on National Living Wage – Willis Towers Watson

Over 70% of retail chains operating in the UK are undecided about their approach to the introduction of the National Living Wage (NLW), according to a survey from Willis Towers Watson. As many as 80% intend waiting until the legal deadline of 1 April 2016 before making pay changes for workers aged 25 and above.

According to the survey, 43% of organisations reported that more than half of the workforce is currently paid less than the NLW, and one in three said that a high proportion of their lower-paid employees are over 25.

Tom Hellier, UK practice lead for rewards, said:

‘Retailers are among the businesses that will be most affected by the introduction of the NLW mainly through an increase in fixed costs which will rise in line with the size of the retailer. But there are other factors to consider when introducing it, such as the impact on recruitment and retention among under 25 year olds, as well as on the wider workforce and on the company’s overall reputation if not well handled.’

Willis Towers Watson carried out on an online survey among 28 UK retail chains – ranging in size from less than 5,000 employees to some with over 100,000 – between 23 September and 19 October 2015. For more details about the survey, please visit: www.willistowerswatson.com/en/press/2016/01/Retail...