People working for the not-for-profit sector are less likely to be paid the Real Living Wage than those in other industries, a major study has revealed.
The Living Wage Foundation said charities should think about how they can “improve pay to attract new people to the sector” amidst a reported jobs crisis.
Not to be confused with the National Living Wage (NLW) or National Minimum Wage (NMW), the Real Living Wage is based on living costs and is set by an independent organisation.
The wage is currently paid by more than 7,000 UK businesses and is enjoyed by over 250,000 employees.
The Real Living Wage is voluntary, however, and businesses are under no obligation to pay it.
But with third sector job vacancies exceeding pre-pandemic levels, the foundation is urging charities to consider adopting the Real Living Wage to attract more and higher-quality candidates.
“Around a fifth (17 per cent) of all third sector workers earn less than the real Living Wage. This compares with 26 per cent in the private sector and six per cent in the public sector,” said Joe Richardson, of the Living Wage Foundation.
“It is these workers – particularly those in the private and third sectors – who are more likely to have lost work or income due to being furloughed throughout the pandemic, while those on better pay have typically fared better.”
Third sector jobs site, Charity Job, also found that there are currently more than 40,000 paid charity jobs on its platform, suggesting that charities are “struggling to fill roles”.
“The UK charity jobs market has experienced enormous changes during the time of the pandemic, from the low point of the first lockdown to the current high. Whether or not the pandemic will bring about long-term change remains to be seen, but it is likely that the impact will be felt for some time yet,” said the recruiter.
“The shortage of candidates is a concern, as charities that can’t fill their vacancies might be unable to do vital work.”
According to a recent study, almost nine in 10 (86 per cent) employers who pay the Real Living Wage say it has improved the reputation of the business, while three in four (75 per cent) say it has increased motivation and retention rates.
A further 64 per cent of businesses say it has helped them differentiate themselves from others in their industry, while over half (58 per cent) say it has improved relations between managers and staff.
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