1. The case study above suggests that the introduction of the National Living Wage in April 2016 has prompted some organisations to trim staff benefits and alter terms of employment in relation to overtime and weekend and bank holiday rates in an effort to cushion the impact of a higher wage bill on profitability. Is this an understandable and reasonable approach? Critically assess the short-term and longer-term implications of this course of action for the organisations concerned.

2. As the case study above notes, the government has trumpeted the rise in the minimum wage from April 2016 with the slogan ‘Britain deserves a pay rise’. From your knowledge of the legislative reform in this area and the wider social and economic policy pursued by the government is a pay rise in real terms a genuine lived experience for most low-paid workers?

3. How far do you agree with the sentiments of Paul Schlee from Pret a Manger that there is a direct link between pay and staff motivation and cheerfulness at work?

4. Despite protestations to the contrary do you think that in altering the way in which tips are distributed between waiting staff and kitchen staff Zizzi is aiming to maintain pay differentials between the two staff groups? How important are pay differentials? What are the possible consequences for firms when differentials are narrowed?