London law firm Bircham Dyson Bell has published the results of its research into the views of UK entrepreneurs on the impact the National Living Wage will have on business.
From 1 April 2016, the National Living Wage will come into force and workers aged 25 or over and not in the first year of an apprenticeship will, from then on, be paid a minimum of £7.20 per hour.
As part of its quarterly Entrepreneurs Optimism Index, Bircham Dyson Bell surveyed over 100 entrepreneurs and found that a third believe that the National Living Wage will have a positive impact on their business. Over 50 percent however are unsure as to whether the impact of the increased National Living Wage will be positive or negative.
Of those entrepreneurs who think that the introduction of the National Living Wage will have a positive effect on business:
- Almost three-quarters think the chief benefit will be improved employee morale.
- 56 percent confirmed the introduction of higher pay under the National Living Wage will improve their reputation.
- Over half (55 percent) think that the National Living Wage will improve the ease by which they recruit talent.
- Almost half (48 percent) commented that productivity will improve or significantly improve.