Tom Hellier, UK Practice Lead, Rewards at Willis Towers Watson 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.”
According to the survey, 43% said that more than half of their workforce is currently employed on less than the NLW, while one in three said that a high proportion of their lower-paid workers are over 25. The survey shows that smaller retailers are more likely to offer at least the NLW to all of their employees regardless of age, while only 8% of mid-tier retailers (10,000 to 49,000 employees) said they definitely plan to do so.
Tom Hellier said: “While there are a large number of retailers which will need to review their pay scales and levels to comply with the letter of the law, it is important that the spirit of the law is kept in mind too. Companies that do the minimum may lose out to their competitors who are seen to provide higher salary levels for their employees.”
* Willis Towers Watson carried out on an online survey among 28 retail chains - ranging in size from less than 5,000 employees to some with over 100,000 - operating in the UK between 23 September and 19 October 2015.
