Companies that pay real living wages to workers say raising wages is good for business

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Research finds bosses think the benefits are worth joining the voluntary scheme, which pays staff more than the government's legal minimum< /p> Real living wage workers are paid more than the legal wage floor (

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Companies paying their employees real living wages have backed the program as workers grapple with the cost of living crisis.

Study by Cardiff Business School shows that 94% of employers registered with the voluntary initiative said they had benefited from joining.

Bosses cited improvements in recruitment, retention and reputation for accreditation with the Living Wage Foundation. The study comes as the campaign announced it had signed up 13,000 businesses, with luxury hand soap brand Molton Brown and The Perfume Shop becoming the latest signings.

Director of the Living Wage Foundation, Katherine Chapman, said: "We are delighted to have reached 13,000 accredited living wage employers across the UK who are committed to ensuring that everyone who work for them, including contract staff like cleaners and security guards, earn a salary that matches the cost of living.

"As households across the country grapple with the deepest income squeeze in a generation, a real living wage has never been more important to workers.

"This Cardiff Business School study clearly shows that rewarding staff with a salary that can make ends meet is not just good for workers, it's also good for business." The statutory minimum hourly rate for staff aged 23 is £10.42, while the voluntary actual wage is £10.90 an hour for workers of all ages, rising to £11.95 at London.

The Cardiff Business School study shows that 87% of living wage employers say that paying the actual living wage has boosted their overall reputation as an employer; 66% said it set their company apart from others in the same industry; 64% said the initiative had improved relations between staff and managers; 62% said it improved employee recruitment; and 60% said it boosted worker retention.

Carrie Harris, Director of Human Resources at Molton Brown, said: "We put our people first: it is very important to us to ensure that they feel motivated and supported. The implementation of the real living wage was about doing the right thing for us...