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New research shows social enterprises leading the way in employment practices
With the UK Government now promising a ‘New Deal for Working People’ that will overhaul existing conditions and strengthen workers’ rights, the world of work is at the heart of political debate – but what does good work look like? Our latest research suggests that social enterprises can offer a blueprint for a better way of doing business.
Our new paper, published in partnership with the Living Wage Foundation, delves into the quality of employment created by social enterprises compared to the wider business community. From training and pay to flexibility and inclusion, the report finds that social enterprises represent business at its best – which helps them recruit and retain staff.
While millions of UK workers take home wages that won’t cover basic necessities, social enterprise employers are far more likely to pay the real Living Wage (RLW). Eight in ten social enterprises pay the RLW (currently £12 across the UK and £13.15 in London) compared to just one in nine employers as a whole. They are often also set up to create jobs and opportunities for those furthest from the labour market such as disabled people, those with mental health problems and the long-term unemployed.
Once in work, the research showed that social enterprises are more likely than other businesses to offer training and development opportunities, with 77% providing this compared to just 60% of other businesses. Social enterprises are also shown to have a diverse range of ownership and leadership models, which are more likely to provide workers with a voice to influence their organisation; 38% of those with business boards reported that membership included employees.
A dedication to changing employment practices can be found in social enterprise Clean for Good, which is featured as a case study in the report. It shows how a social enterprise can challenge practices in the traditionally exploitative cleaning sector through a dedication to paying the RLW. Satisfaction rates at the business are regularly in excess of 85%, and all of its cleaners enjoy terms and conditions above the statutory minimums. Instead of a race to the bottom, it’s using its position as a business dedicated to the wellbeing of staff as a factor in winning new contracts.
Our head of research Dean Hochlaf, who led the report, said: “Good working conditions are the foundation of a stronger, fairer, more prosperous economy – and it’s clear from this in-depth study that social enterprises are leading the business community in setting higher standards for their workforce and creating better employment opportunities for everyone. In turn, social enterprises are reaping rewards from recruitment and retention to morale and productivity, showing that good work can be good for business.”
