Our engagement on living wages has sought to encourage companies to take a progressive long-term strategic approach to human capital management.
What is living wage?
- Raising awareness about the concept of a living wage and the benefits it provides to employees, as well as for the business as a whole.
- Encouraging companies to consider how workers’ wage levels are relevant to long-term business success.
- Asking whether, and how, companies assess the financial consequences of a wage level adjustment across their operations.
- Asking for enhanced disclosure on (a) average wage levels per business section and region; (b) a list of benefits and to which employees they apply; and (c) wider workforce issues, through the Workforce Disclosure Initiative survey.
Observations, challenges and best practice
Some of the companies we spoke with perform regular employee surveys, which include questions on overall satisfaction with pay and benefits packages. None of the companies disclose the results, even in an aggregated manner. We will continue to push for regular and transparent employee engagement surveys, which help detect areas and themes of dissatisfaction.
- There are various methodologies to measure local and regional living wage. Among them are ISEAL Alliance – A Shared Approach to Estimating Living Wages (the Anker methodology), MIT’s Living Wage Calculator, Centre for Policy Dialogue Bangladesh and Berenschot.
- As of December 19th, 2019
Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.