Specialist autoclave manufacturer Priorclave has voluntarily accepted to adhere to the London Living Wage.
The company believes this will attract and maintain people with engineering skills and those with a flair for design and product development.
Priorclave has a global presence, shipping products from its London factory to virtually every country worldwide.
Managing director Tony Collins says: "Skilled personnel able to work and take an active part in a busy manufacturing centre are essential to our growth.
"By signing up to the London Living wage, we are making a commitment to help employees maintain a good standard of living, providing for themselves and their families".
An independent study examining the business benefits of implementing a Living Wage policy in London found that more than 80% of employers believe it enhanced the quality of the work, while absences had fallen by approximately 25%.
Two thirds of employers also reported a significant impact on recruitment and retention within their organisation.