A year ago SSE took the bold step of becoming the first energy company to be an accredited Living Wage employer.
Our motivation was simple. For us, it was matter of basic fairness, we firmly believed that people should get a wage they could live off, not just survive on.
When we made this commitment we were the UK’s biggest Living Wage employer. We helped blaze a trail and whilst other large companies and organisations, such as the Bank of England, have now joined us, we remain the only major energy supplier in the UK to make this pledge.
For once we are hoping our competitors match us. That’s because it is in all our interests that in-work poverty is reduced. The best way to achieve that is to pay employees a fair wage that ensures they can cover the cost of living including housing, food, bills and work travel.
The business argument for doing so is overwhelming. There is clear evidence of improvements in staff retention; reducing recruitment costs, increasing productivity and the wellbeing and motivation of the workforce. In addition, at a macro level, raising living standards reduces the likelihood of working people relying on state benefits to get by.
When SSE signed the Living Wage agreement it did so because it’s a company that’s serious about taking action that makes a difference.
Whilst a number of SSE employees were the immediate beneficiaries, receiving a boost to their pay packet, the job didn’t stop there. We are now rolling out the Living Wage in service and works contracts across our £2bn-a-year supply chain. As of 1st April 2014, all eligible contracts tendered include a Living Wage clause.
As a major UK employer we hoped that our lead would help others follow and we continue to support The Living Wage Foundation to evidence its benefits to others. So, SSE is taking part in important research which is being carried out help demonstrate the strong business case to other companies.
For us it’s unequivocal. Paying a Living Wage demonstrates you value your employees highly and are willing to pay them at a level which shows you mean it.
It’s an indication of a company that is serious about doing the right thing, being both sustainable and responsible.