At First Bus, we’re transforming from an asset-focused business to one that puts our people and customers first. As part of this, we’re shifting our culture to ensure our colleagues feel supported, listened to and appreciated. We’re on a journey and continue to introduce new ways to engage our people, enhance their wellbeing and focus on EDI to help improve their working lives. We’ve invested in new healthcare schemes, have introduced a regular drumbeat of frontline manager conversations and everything in between. We’ve also engaged our colleagues in creating a new set of business values and a clear purpose ‘Your journey is our everything’.
Not only will these initiatives help us attract new talent in a competitive labour market, but they’ll also create a culture where our people feel appreciated and rewarded – which in turn boosts engagement, increases productivity and reduces attrition and absence. As our transformation journey continues, we acknowledge that more must be done to get us to where we want to be.
With the cost of living continuing to rise at an exponential rate, more and more people throughout the UK are struggling to afford the basics. If inflation is causing supermarkets to charge £7 for a tub of butter, what are households supposed to do should they receive an unexpected tax bill or their boiler packs in?
This is where businesses have the opportunity to do what’s right by their employees. UK law states that businesses must pay their employees the National Living Wage, which from 1st April 2024 stands at £11.44 an hour for over 21 year olds. This statutory rate is determined based on a percentage of median earnings, but does not accurately reflect how much money employees need to live. Rather than expecting our people to bear the brunt of the shortfall, businesses have a responsibility to pay their colleagues a fair wage – which they can do by becoming a real Living Wage employer.
The real Living Wage is a voluntary rate of pay based on the real cost of living. Calculated annually and set independently by the Living Wage Foundation, the real Living Wage sits above the National Living Wage at £12 an hour for over 18 year olds (or £13.15 an hour for those living in London). Businesses looking to become a real Living Wage employer have until 1st May 2024 to implement these higher pay rates – and I urge all businesses that can afford it to please consider this investment in your people.
Once accredited on 1st April 2024, First Bus will become the UK’s largest national bus operator to make this commitment – which will increase the wages of around 1,300 employees. We also made the decision to go above and beyond the requirements of the real Living Wage to include apprentices, which we will roll out over the next 18 months to benefit a wider population of our workforce. In doing so, we hope to inspire other businesses to follow suit.
It’s worth noting that the real Living Wage doesn’t just benefit your employees – it’s also good for business. The Living Wage Foundation surveyed a sample of their 14,000 accredited employers and found that 94% of them had benefited from the accreditation, with 87% claiming it had improved their reputation.
As well as boosting your brand, the data shows that 90% of consumers are more likely to buy a product or service from an employer that pays the real Living Wage. Investors also want to see employers be more socially responsible, and 85% state that investment in employees is an important factor in their decision-making.
Paying a real Living Wage can help businesses retain existing employees and attract new ones too. Employees are more likely to stay loyal to their employer if they’re paid a fair rate, and will likely be more productive and motivated. Over half of employers also agreed that the accreditation improved the quality of job applications received, and 62% said it improved recruitment overall.
Above all else, it’s worth remembering that your business would fail to exist without the hard work and loyalty of your employees. So as you look to invest in other areas of your company, don’t forget the importance of investing in your people.
Kevin Green, First Bus Chief People Officer