We live in exciting times and Scotland is witnessing major changes in its social and economic framework. Following the Scotland Act 2016, we are seeing the introduction of new fiscal policies and powers, whilst we grapple with the challenges of continuing to trade in a single market and retaining key talent and labour. Adding another layer are the City Deals. Aberdeen, Glasgow and Inverness have announcements already and Edinburgh is in the midst of pulling together its long term plans for the ‘Vision’ of the city region and how the City Region Deal can help deliver this.
Edinburgh’s Deal in contrast to many of the other Cities is not one of regeneration, but of building on success and innovation. Particularly relevant to Edinburgh is creating inclusive economic success addressing the gap between the prosperous and the citizens living in poverty. There is a lot of research that shows a more equal society produces greater economic prosperity through increased jobs and salaries, leading to greater wealth distribution and generation. It also creates a sense of purpose and increased health benefits, with reduced demand on health, social care and welfare.
In spite of Edinburgh being the second most prosperous city in UK, you do not have to travel far to find poverty in our capital city. One in five of our city’s children lives in poverty, and one in five people in poverty is in work. Whilst business might struggle to pay the living wage, without a commitment to work towards this target, through a responsible business approach and a greater focus on the wellbeing of our workforce, this unpalatable statistic will continue.
Employees are a business’ most important stakeholder – both its biggest voice and largest expense – and investing in their wellbeing will have a considerable impact on team morale, office culture, attendance levels and productivity. In fact, an average firm with 250 employees is estimated to lose around £250,000 due to sickness absenteeism, while an engaged workforce can reduce staff turnover by nearly 90% .
Productivity in UK Businesses is the lowest of all the G8 countries. Investing in our workforce through training and development builds greater efficiency and commitment in the business. This in turn creates greater output and wealth not only for the business but for society.
Edinburgh’s success as a capital city, thriving business community and leading financial centre means that there is huge potential for economic growth, but also great opportunity for individuals. By working with government and investing in employees, paying living wage and improving wellbeing, business leaders can play a significant role in the future of our city.
Liz McAreavey is acting chief executive of Edinburgh Chamber of Commerce
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