Martin Boden on why the Living Wage matters as Divisional Managing Director of Sodexo Corporate Services
Since formally becoming a Recognised Service Provider in June 2015, Sodexo has been working hard to implement the independently-calculated Living Wage rates in London and the UK, not only in its head offices around the UK but also with new and existing clients we work with.
As an organisation with people at its heart and one that is focussed on improving quality of life and having a positive impact on society, the move to become a Recognised Services Provider was not one that required too much thought - it made perfect sense. As part of this process we committed to provide a Living Wage alternative in all our bids and to encourage our clients to go further than the government minimum and ensure their staff earn a wage they can live on.
As a result, over the past 18 months I have been fortunate to be involved in a number of negotiations and discussions about how we implement the independent Living Wage rates in new and existing business. This is not a straightforward process and definitely requires a degree of commitment from both the client and the service provider sides. However, it has been hugely encouraging to hear the developing views of a number of clients, colleagues and peers about the subject and the growing importance they are placing on supporting the Living Wage Foundation to make a real difference.
I met with a client recently to discuss the development of a case study that we plan to share through the Living Wage Foundation over the coming months. We discussed in detail the process that we went through and started to evaluate the benefits we have both seen as a result.
It's only when you consider how things were before that you realise how much of a difference implementing the real Living Wage can make. There are obviously the tangible benefits that we can easily measure - things such as employee engagement and customer satisfaction, but there are also the more intangible elements such as the personal stories from employees regarding the difference the Living Wage makes to their lives.
One example from someone at one of our contracts where the client has extended their Living Wage commitment to include contractors such as Sodexo highlights the impact it can make. When asked what the real Living Wage meant to them, their response was that it has improved their family's finances considerably and as result they were able to enjoy a more comfortable and happy family life. To me, this is what it is all about.
The Living Wage does make a real difference to the people we employ and I believe there is a considerable opportunity for the facilities management industry as a whole to benefit from this. Too often our industry could be accused of participating in a race to the bottom. With staffing costs being one of the most visible overheads, it is often where the focus is put to reduce costs. Not only would I argue that this creates an issue of sustainability for all of us in the industry, it certainly doesn't support and recognise the value of the people we employ. As a major employer in the services industry we truly believe that our people, who are skilled, committed and provide outstanding service to our clients, should be paid fairly.
I personally will continue to promote these ideals at Sodexo and to the wider facilities management industry and look forward to continuing our work with and supporting the Living Wage Foundation in the future.
About the Service Provider Recognition scheme
For many sectors implementing the Living Wage, achieving accreditation relies on responsible procurement. The Living Wage has been successful thanks to the constructive involvement of our partners in the contracted service providers industry that have worked with employers to implement the Living Wage on their contracts.
Providers who work with us have seen the benefits that the Living Wage can bring and would like to have a pathway and play a leadership role where accreditation isn't currently possible in a low pay market. It is not always possible for these providers to implement the Living Wage for all the contracts they deliver. However they can communicate to clients that the Living Wage is always an option. To recognise contractors who support the aims of the Living Wage Foundation and to further best practice in the industry, we launched a Service Provider Recognition programme with key members in the Service industry two years ago.
Living Wage Service providers commit to pay all their own head office staff the Living Wage as part of this agreement. They also commit to always supply a Living Wage bid alongside every market rate submittal to all of their prospective and current clients. This means the client always has the choice to implement the Living Wage at the point of tender.