Birmingham-based Akari Care has pledged to introduce the new National Living Wage (NLW) for all of their employees who currently earn less than £7.20 regardless of their age, equalling a £1.35million pound investment.
The introduction of a new mandatory National Living Wage on the 1st April this year stated that all workers aged 25 and above should be paid £7.20 an hour - a rise of 50p relative to the current National Minimum Wage (NMW) rate.
Akari Care has announced that they will pay all of their employees previously on NMW the new higher rate in a bid to show their commitment to their staff.
However first-year apprentices, who are currently exempt from the NLW will be paid £7.00 an hour, which is still higher than the NMW rate.
This announcement comes after the care provider introduced an incentive scheme for their qualified nurses last year which equated to a 50p per hour pay rise for all of the company’s front line staff.
Lynn Fearn, Deputy CEO of Akari Care, said: “In order to ensure a balanced and developing workforce that will continue to drive our quality agenda it is important that we can attract and retain talented, committed and experienced staff, along with younger people into the company. They will be our senior care assistants, team leaders, clinical leads and home managers of the future.
“Akari Care values all of its employees and the Board reached the conclusion that age should not be a barrier to earning the National Living Wage.
“In addition, we took the view that maintaining the pay differentials for all grades of staff played an important part in securing the cohesive, consistent and motivated teams that are the key to providing high quality care and this has led us to implementing the rise for all grades of staff.
“There will be a considerable impact on the company’s payroll but investment in our employees is a vital part of our business strategy.
“Recruitment and retention is a challenge faced right across the care sector but is an integral part of delivering high quality care and these decisions are an indication of the value that the company places on those who are at the front line of delivering vital services and the respect with which they are regarded.”