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More than 90 per cent of bar staff are paid less than the Living Wage, it has become apparent through a new survey.
You may be shocked but it is important to clarify that there is a different between the National Minimum Wage and the Living Wage. The companies uncovered by the KPMG study are not breaking the law, but are simply not paying the rate which is considered to be enough to live on.
This equates to 4.82 million people, who are struggling to get by or making their salaries up through other means. It could be argued that bar staff are in a role where they can up their take home pay through good work and receiving tips. But Britain does not have the same tipping culture as other countries, such as the US, where good bar skills are rewarded with tips.
Instead, bar staff can work long and often unsociable hours and still go home with less than what is considered a fair wage to live off. Inside London the Living Wage is £8.30 an hour and outside of the capital it is £7.20, which is considerably more than the Minimum Wage which is set at £6.19. But while companies may see paying their staff this extra money as a huge outlay, it may be worth their while in the long run.
Staff motivation in the hospitality industry is particularly important as it is employees who help to sell a business and are all part of the customer experience. Marianne Fallon, head of Corporate Affairs at KPMG, said: "At KPMG, we have found that the improved motivation and performance, and the lower leaver and absentee rate amongst staff in receipt of a Living Wage means that the cost is offset and paying it is the right thing for our business."
While receiving tips also helps to motivate employees to perform well, it has a different effect when staff need them just to get by, as their wages should be of a sufficient level in the first place.
