AUCHRANNIE Resort on Arran has become one of only two hotels in Scotland to become a real living wage accredited employer.
The commitment follows the resort’s recent initiative in becoming Scotland’s first employee-owned hotel.
As a result of becoming an accredited living wage employer, all un-promoted staff aged 18 or over will receive the real living wage of £8.75 per hour – significantly higher than the UK government’s national living wage of £7.83 which applies only to those aged 25 and over.
Auchrannie has introduced this change after setting efficiency targets with the team last year. The company says that as a result of the collective efforts of the whole team, it has been possible to improve profitability significantly through decreasing costs and wages.
Although the savings do not pay for the wage increases entirely the company is confident that the resort will see additional benefits as a result and points to research which shows that 93 per cent of real living wage employers have seen benefits. These include improved employee retention, improved reputation and better working relationships between management and the rest of the team.
The company believes that the team on the shop floor is the foundation for Auchrannie’s success and has become an accredited living wage employer to ensure that everyone takes home a fair pay for a fair day’s work.
“We are delighted to be able to make this commitment,” said managing director Linda Johnston.
“When combined with Auchrannie’s recent initiative in becoming Scotland’s first employee owned hotel, this places Auchrannie in a very strong position to encourage young people to make a career in the hospitality industry and helps us to attract the best people.
“In addition, we are confident that the collective efforts of our fantastic team will continue to strengthen Auchrannie’s customer care and community focus as well as improving the sustainability of the business going forward.”
Auchrannie became the first Scottish hotel/resort to become employee owned (EO) when ownership transferred from the Johnston family to the employee trust towards the end of 2017. The resort says that EO gives employees a meaningful stake in the organisation together with a genuine say in how it is run. It roots business in Scotland, drives performance and delivers economic wellbeing, according to the company.
Statistics consistently demonstrate that employee-owned businesses outperform their non EO counterparts in terms of higher levels of profitability; improved business resilience during times of recession; increased productivity brought about by higher levels of engagement and enhanced employee wellbeing.
Auchrannie was established by Iain and Linda Johnston in 1988, with Linda heading up the company as managing director and board chair since 2010. The resort, which celebrates its 30th anniversary this year, started as a 12-bedroom country house hotel and has grown into a renowned resort with an annual turnover of £6.7m.
Located in Brodick on the Isle of Arran, the award-winning resort comprises two four star hotels, 30 five star self-catering lodges, two leisure clubs, three individually branded restaurants, a children’s playbarn, an ASPA destination spa and Arran Adventure outdoor company.
A new development of luxury couples’ retreats will open later this year.
The UK living wage for outside London is currently £8.75 per hour. These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in the UK.
The accreditation programme in Scotland launched in April 2014. It is an initiative from The Poverty Alliance, in partnership with the Living Wage Foundation, and is funded by the Scottish Government. There are now more than 1100 accredited living wage employers in Scotland.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here