Bracknell, UK ,

Seventy one percent of people surveyed by Kronos on the impact of the National Living Wage have stated that despite exclusively targeting employees over the age of 25, organisations will be forced to raise wages for all members of staff. With the new legislation potentially adding £11 billion to the UK national wage bill from April, improving productivity will be critical to counter-balancing this cost.

News Facts

  • In return for paying the National Living Wage, one third of survey respondents believe that organisations will expect greater loyalty from them, while more than half predict that management will demand increased levels of productivity.
  • More than two thirds of respondents claim they would have been more loyal to their current employer if they had proactively introduced the National Living Wage ahead of the legislation.
  • Understanding the different motivations of multi-generational workforces will be central to organisations positively impacting this loyalty. Sixty-two percent of 16-24 year-old survey respondents confirm they would be more loyal to employers if they had the chance to be paid the new Living Wage. There is a significant disparity with the older generation, however, as only 36 percent of respondents over the age of 55 feel the same, revealing that millennials place higher importance on salary.
  • Londoners are most likely to be more loyal to an employer paying the new Living Wage, with 58 percent saying they would be more committed, whereas respondents in the North-West and Yorkshire are least likely to agree.
  • Organisations will need to understand what motivates staff to drive increased performance. Forty-one percent of respondents rated flexible working as the number-one perk, placing it above benefits such as increased basic pay and additional paid holiday. However, respondents over the age of 55 are the least motivated by flexible working (37 percent for those over 55, compared to 45 percent for the 35-44 age group).

Supporting Quotes

  • Brenda Morris, general manager UK, Kronos 
    "The National Living Wage will force organisations to look at productivity and how to maximise the value from what is often regarded as an organisation's most valuable asset:  its people. While organisations need to focus on productivity, just paying employees more will not necessarily drive productivity gains. It's critical that organisations look closely at the wider benefits that motivate their workforce and how they can tap into these to boost overall performance and profitability."

Survey Methodology

This survey was conducted by Censuswide, on behalf of Kronos Incorporated, between 22nd and 25th January 2016. A sample of 2,020 men and women over the age of 16 based in locations across the UK was used. Respondents revealed their thoughts about the introduction of National Living Wage, highlighting the impact they expect this will have on wider pay scales, loyalty, and productivity as employees and businesses in the UK adjust to the new legislation.

Supporting Resources

About Kronos Incorporated

Kronos is the global leader in delivering workforce management solutions in the cloud. Tens of thousands of organisations in more than 100 countries - including more than half of the Fortune 1000® - use Kronos to control labour costs, minimise compliance risk, and improve workforce productivity. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, and labour analytics applications at Kronos: Workforce Innovation That Works.


© 2016 Kronos Incorporated. All rights reserved. Kronos and the Kronos logo are registered trademarks and Workforce Innovation That Works is a trademark of Kronos Incorporated or a related company. See a complete list of Kronos trademarks. All other trademarks, if any, are property of their respective owners.

Louise Harris
+44 118 900 6886
[email protected]

Michael Creane/Tom Ingoldby
020 7680 5500
[email protected]