The hospitality sector is a cornerstone of our economy, providing jobs and services that enrich our communities. At Bullhouse, part of our mission is “to use the power of great-tasting beer to bring communities together.”
However, it’s no secret that many employees in this industry struggle to make ends meet. Today, I want to highlight why paying a Real Living Wage is not just the right thing to do but also a smart business decision.
Ensuring Basic Needs and Beyond
First and foremost, paying a real living wage ensures that our staff can meet their basic needs and have a little left over at the end of the week. When employees aren’t stressed about meeting their basic needs, they’re happier, healthier, and hopefully slightly less stressed coming in to work. This isn’t just good for our employees; it’s also good for our business.
Reducing Employee Turnover
We’ve found that paying a real living wage helps reduce employee turnover. High turnover rates are a significant problem in the hospitality industry, leading to increased costs associated with recruiting, hiring, and training new staff. When employees feel valued and fairly compensated, they’re more likely to stay with the company long-term. We’ve built up a loyal customer base that enjoys getting to know our staff, enhancing Bullhouse East’s social value at the heart of the community.
Improving Morale and Job Satisfaction
In addition to reducing staff turnover, a real living wage can improve employee morale and job satisfaction. When employees feel they’re being paid fairly for their hard work, they’re more likely to be engaged and motivated. This positive attitude translates into better interactions with customers, creating a more welcoming and pleasant atmosphere, something we strive for Belfast’s first permanent taproom, Bullhouse East.
Positive Brand Association
Before we became an accredited living wage employer, we were already paying the living wage. Now, as an accredited employer, we’ve benefited from the positive brand association that comes with it. In today’s socially conscious market, consumers increasingly make purchasing decisions based on a company’s ethics and values. Businesses known for treating their employees well can attract more customers who want to support fair and ethical practices.
Broader Economic Impact
When employees earn a Real Living Eage, they have more disposable income to spend in their local communities. This increased spending can stimulate local economies, creating a positive ripple effect that benefits other businesses and services. By paying a Real Living Wage, companies in the hospitality industry can contribute not only socially but also economically to their local communities.
Addressing the Surrender Principle
However, there’s a significant challenge that the hospitality sector in Northern Ireland faces: the surrender principle. This archaic practice, dating back to 1902, requires licensed premises to obtain an existing license before a new one can be granted. This creates an artificial scarcity of licenses, driving up costs and making it difficult for new businesses to enter the market. For context, a pub license costs upwards of £100,000. As a result, existing businesses face less competition, reducing the incentive to innovate or invest in their workforce.
The surrender principle is holding the hospitality sector back by stifling competition and preventing new businesses from flourishing. This lack of competition leads to complacency among established businesses, who may feel less pressure to pay competitive wages or improve working conditions. Removing this barrier would not only encourage a more dynamic and competitive market but also create more job opportunities, driving up standards across the industry.
A Call for Change
There’s something fundamentally wrong with a system whereby Northern Ireland has the lowest number of pubs per capita out of any region in the UK. Belfast also has the most expensive average pint prices in the UK, higher even than London, and yet there’s only one living wage accredited pub, Bullhouse East. Despite having world-class producers on our doorstep, 99% of the beer sold in Northern Ireland is imported due to the surrender principle. Imagine a scenario where 99% of milk sold here was imported while locally produced milk had to be exported because local producers were cut off from their own market. This is the unfortunate scenario facing our local brewing sector.
Conclusion
In conclusion, there are multiple benefits to paying the Real Living Wage in the hospitality industry. However, to fully realize these benefits, we must also address structural barriers like the surrender principle. By removing this outdated practice, we can create a more vibrant, competitive, and fair hospitality and tourism sector where businesses thrive and employees are valued. This change will also support our local brewing sector, which needs help and support more than ever.
Thank you for supporting us and helping create a better future for our community.
William Mayne
