In our role as a recruitment consultancy, we bridge the gap between employers and job seekers, ensuring the right fit for both. As the cost of living in the UK undergoes significant shifts, the importance of the Real Living Wage has become a focal point of our conversations with both candidates and employers.
Recent updates have confirmed that the Real Living Wage has been uplifted to £12 per hour across the UK, with an even higher rate of £13.15 per hour in London. This proactive measure, driven by living costs, is designed to ensure that employees can meet their basic day-to-day needs.
As such a prominent talking point in UK employment right now, it's crucial to understand between the National Living Wage and the Real Living Wage. The former is the minimum wage legally set for workers aged 23 and over, standing at £9.50 per hour as of April 2023. However, the Real Living Wage takes a more holistic approach, accounting for the genuine expenses people face.
From a recruitment perspective, this distinction is especially significant in industries grappling with labour shortages, such as Construction. A report from Thorn Baker recently highlighted that the ongoing scarcity of labour in construction has skyrocketed pay rates, with some professionals earning as much as £30 per hour. Additionally, we are having many conversations with clients across our Industrial and Facilities Managements brands around the effect on contracts, project estimates and bids and how they anticipate facilitating the change.
These figures underscore a glaring discrepancy between statutory wages and what industries are willing to pay when talent is scarce. It sends a clear message to both job seekers and employers: understanding the real value of work and the genuine cost of living is more crucial than ever.
For us, championing the Real Living Wage isn't just about aligning with a trend. It's about advocating for a more realistic, humane approach to compensation. By educating our clients about the importance of the Real Living Wage, we aim to elevate the standard of recruitment, ensuring candidates are placed in roles where they are not just appreciated, but also fairly compensated.
In conclusion, the uplift in the Real Living Wage is not merely a figure—it's a testament to the evolving dynamics of the UK job market. While it remains a voluntary commitment, we urge employers to understand its significance. As a recruitment partner, we're positioned to provide insights, guidance, and strategies to navigate this changing landscape, ensuring that both employers and employees thrive.
Want to speak to one of our specialist consultants? Get in touch today!