There have been a number of articles in HR circles about how employers can help employees who find themselves in debt. There have been articles on how to support employees who have a gambling habit and how to support employees who have  alcoholic or drug problems. A recent article explained how to support an employee through the grieving process. And a recurring theme has been how best to support individuals suffering mental ill health.

These articles demonstrate that HR believe that organisations benefit by adopting a compassionate approach to management. However these measures are focused on the individual more about tweaking polices rather than tackling inequality within the organisation. Narrowing the gender pay gap and paying a living wage  would make a much greater impact on a far bigger section of the workforce. However these measures are considered too difficult and a threat to the bottom line. Senior managers simply are not convinced that fair pay would generate an increase in productivity sufficient to cover the costs.

So what is the business case for a living wage and closing the gender gap? Interestingly the business case for both is very similar , improved commitment and morale, a more motivated and productive workforce, lower employee turnover reducing recruitment and training costs. In short an enhanced reputation as a good employer.

It’s no coincidence that such an organisation would see reduced absenteeism and an improvement in the health and well-being of the workforce. A stable workforce would generate a better return on investment in training. A characteristic of organisations closing the gender gap is the promotion of flexible work patterns making the organisation more attractive to potential employees. In summary a good place to work.

But it is not a business case until these objectives can be expressed in financial terms. So how much is absenteeism costing the organisation in lost productivity, agency costs overtime payments and paying employees who are absent? How much is the organisation spending on recruitment? What are the statistics for employee turnover over? How much is the organisation investing in employee training and how much more benefit could it get from this investment if employee turnover over was reduced.

Armed with this data and input from finance it would be possible to put a figure on the financial benefit of even a relatively small reduction in absenteeism and employee turnover over. The next step is to establish what it would cost to move from a minimum wage to a living wage. How many employees are we talking about? Some more detailed work would be require to establish the gender pay gap within the organisation. And therefore how much it would cost to close this. And if that figure appears off putting just remind colleagues of the eye water costs that Birmingham City council has recently faced in back pay for failing to address equal pay issues.