This week the Government’s Living Wage becomes law. Generally it means that all employees aged 25 or over are legally entitled to at least £7.20 per hour. For some that means an immediate pay rise of an extra 50p per hour, however also worthy to note ­­- this is likely to increase every year.

Forcing companies and organisations to increase their wages means they increase their costs, so they need to increase their productivity just to maintain financial status quo.

For many UK businesses, this change alone may reinforce the law of ‘survival of the fittest’. As in evolution, the companies most able to adapt and absorb change will survive and thrive, whilst those that see this as an additional cost may be lost!

If you pay the extra money for each member of staff affected by the new law, will you also invest in training to get your money’s worth? If so how?

You can direct more cash into training of affected staff. This is often a short term approach, considering how receptive lower paid staff may or not be. Additionally people naturally move roles or leave the company meaning the employer continually throws cash into a bottomless pit without necessarily getting the return on investment.

In such times, the smart decision identifies leadership as the long term productivity focus. Rather than just spend on short term specific training, the strategic leader will also invest in leadership development to influence all employees for years to come. This approach should provide at least the same immediate uplift, in addition to a more sustained improvement.

Don’t just absorb a cost to your business; ensure you review your strategy and invest wisely in leadership to ensure a long term benefit to your business.