Perceptions of living wage impacts in Aotearoa New Zealand: towards a multi-level, contextualised conceptualisation

Abstract

Purpose

The study maps workplace stakeholders’ perceptions of living wage (LW) impacts in New Zealand. Empirical findings inform an inaugural model of LW impacts and contingent factors at individual, organisation, sector/industry and national levels.

Design/methodology/approach

Data from a national employee survey, semi-structured interviews with business sector representatives, and staff in two LW organisation cases were subjected to thematic content analysis.

Findings

Informants emphasised anticipated LW impacts amid complex workplace and regulatory dynamics. Employers/managers stressed its cost effects. However, employees, human resource (HR) advocates and other LW proponents highlighted employee “investment” impacts that improve worker productivity and societal circumstances.

Research limitations/implications

This study highlights the need for further context-sensitive LW analysis. An initial model of LW impacts provides a framework for comparative and longitudinal work in other national contexts.

Practical implications

The proposed model categorises perceived LW effects and can inform policy development. Findings also stress a need for cross-agency initiatives to address LW concerns, including a key role for HR.

Social implications

The findings highlight perceptions of a LW impacting within and beyond the workplace. Whilst higher-quality management is seen to encourage better-informed decisions about “going living wage”, a LW's positive socio-economic impacts require multi-lateral initiatives, suggesting that those initiatives are is part of wider obligations for policy makers to encourage decent living standards.

Originality/value

This study provides a much-needed and inaugural focus on the intertwined workplace and wider impacts of a LW, extending extant econometric analyses. The paper also synthesizes different data sources to develop an inaugural, context-sensitive model of perceived LW effects.

Citation

Parker, J., Arrowsmith, J., Young-Hauser, A., Hodgetts, D., Carr, S.C., Haar, J. and Alefaio-Tugia, S. (2023), "Perceptions of living wage impacts in Aotearoa New Zealand: towards a multi-level, contextualised conceptualisation", Personnel Review, Vol. 52 No. 4, pp. 1233-1254. https://doi.org/10.1108/PR-01-2021-0037