Employers underpaying workers risk losing 80% of their business

Nov 04, 2013

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New research from the Department for Business, Innovation and Skills (BIS) reveals that businesses who pay less than the National Minimum Wage risk huge damage to their business through loss of reputation, low staff productivity and high employee turnover. The survey findings come as Government begins to ramp up its scheme to ‘name and shame’ employers who don’t comply with the law and pay their workers at least the National Minimum wage.

Findings from the research show:
• Eight out of ten people “would not use the services of a business if they found it paid less than National Minimum Wage”
• Almost the same amount (79%) would encourage family and friends to do the same, while nine out of ten people called employers who pay less a “disgrace”
• Underpaying staff was also found to breed resentment, low productivity and high employee turnover. Eight out of ten workers would “not work as hard” if they knew they were underpaid, not surprising when 90% said they would actively resent their employer. The vast majority (85%) would seek other work.

Employers who fail to pay their workers what they are legally entitled to face a financial penalty, being publically named and even prosecution. Employers are encouraged to notice the details; age, accommodation, travel time and uniform hire can all effect how much workers must legally be paid.

You can protect your business by checking the details: call the Pay and Work Rights Helpline on 0800 917 2368 or visit www.gov.uk for more information.

An information video can be viewed here: http://www.youtube.com/watch?v=tu8Fo3Rk9N8&feature=youtu.be