Eight out of 10 independent retailers say they will have to ditch staff if there is a rise in the national minimum wage rates, according to The Grocer’s latest reader panel survey.
The finding comes just days before the Low Pay Commission is due to report to the Prime Minister on the impact of the minimum wage - currently set at £4.85 an hour for over-21s, £4.10 for 18 to 21-year-olds and £3 for school leavers. The commission is also set to recommend future rates, with speculation that the top rate could rise to £5.20.
One retailer in the north east of England said he was already struggling to pay the current minimum rates and added: “I definitely could not pay any more. I have not had a holiday for three years because I cannot afford to pay extra staff needed in my absence.”
Sixty per cent of respondents are paying above the rates which, they say, has had an impact on staffing levels. Many said they could now only afford family members to run their shops rather then employing outside staff.
“When you have to pay higher wages it means that the family has to work even longer hours,” said one disgruntled shop owner in Birmingham. “My wife and I are already working for 90 hours a week.”
The cumulative effect of increased costs associated with business rates, licensing arrangements and the minimum wage has incensed many independent retailers.
One south east-based retailer thought that in 10 years’ time corner shops would have disappeared because no one would work in them.
Staff morale and retention was also high on the priority list. One retailer had signed up to the Investors in People scheme in a bid to keep and motivate employees. “Our staff were wary of being interviewed at first but in the end loved the whole experience,” said the shop owner in Shrewsbury. “It has proved to be a fantastic way of motivating and retaining our staff.”
A Scottish retailer added: “It is very tough to find new staff, especially ones you can trust, so it is important to keep the good ones. We have had staff theft, but it was an isolated incident.”
Generally, however, theft among staff members did not appear to be a problem. Only 24% of those polled said they had ever been a victim.
Gail Hunt
Reader Panel: independent retailers
The finding comes just days before the Low Pay Commission is due to report to the Prime Minister on the impact of the minimum wage - currently set at £4.85 an hour for over-21s, £4.10 for 18 to 21-year-olds and £3 for school leavers. The commission is also set to recommend future rates, with speculation that the top rate could rise to £5.20.
One retailer in the north east of England said he was already struggling to pay the current minimum rates and added: “I definitely could not pay any more. I have not had a holiday for three years because I cannot afford to pay extra staff needed in my absence.”
Sixty per cent of respondents are paying above the rates which, they say, has had an impact on staffing levels. Many said they could now only afford family members to run their shops rather then employing outside staff.
“When you have to pay higher wages it means that the family has to work even longer hours,” said one disgruntled shop owner in Birmingham. “My wife and I are already working for 90 hours a week.”
The cumulative effect of increased costs associated with business rates, licensing arrangements and the minimum wage has incensed many independent retailers.
One south east-based retailer thought that in 10 years’ time corner shops would have disappeared because no one would work in them.
Staff morale and retention was also high on the priority list. One retailer had signed up to the Investors in People scheme in a bid to keep and motivate employees. “Our staff were wary of being interviewed at first but in the end loved the whole experience,” said the shop owner in Shrewsbury. “It has proved to be a fantastic way of motivating and retaining our staff.”
A Scottish retailer added: “It is very tough to find new staff, especially ones you can trust, so it is important to keep the good ones. We have had staff theft, but it was an isolated incident.”
Generally, however, theft among staff members did not appear to be a problem. Only 24% of those polled said they had ever been a victim.
Gail Hunt
Reader Panel: independent retailers
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