Employers underpaying workers risk losing business

New research from the Department for Business, Innovation and Skills reveals that employers who pay less than the National Minimum Wage risk huge damage to their business through loss of reputation, low productivity and high staff 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 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 eople called employers who pay less a “disgrace,” and
• 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.

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