Recent government announcements are set to reshape the business and employment landscape. In the latest REC industry survey, businesses like yours identified the biggest challenges ahead:
So, how can businesses prepare for these shifts? Here’s what you need to know:
1. National Insurance Contributions (NICs)
The reduction in NICs could bring relief to employers, but understanding how it offsets rising wage costs is crucial. Consider:
- Reviewing payroll structures to optimise tax efficiency.
- Exploring salary sacrifice schemes for employee benefits.
- Seeking expert tax advice to leverage savings strategically.
2. National Minimum Wage Increase
With a higher NMW, businesses need to reassess wage budgets. Strategies to stay ahead include:
- Conducting a salary audit to ensure compliance.
- Adjusting pricing or cost structures to maintain margins.
- Investing in productivity tools to balance rising labor costs.
3. Statutory Sick Pay Reform
Proposed SSP changes may mean additional employer obligations. To prepare:
- Review absence management policies to align with new rules.
- Implement well-being initiatives to reduce long-term absences.
- Stay updated on government guidance to avoid compliance risks.
4. Zero-Hours Contract (ZHC) Restrictions
Changes could limit how businesses use ZHCs. If you rely on flexible work arrangements:
- Consider transitioning key roles to part-time or fixed-term contracts.
- Explore alternative workforce models, such as temp-to-perm hiring.
- Engage with workers to understand their preferences and adapt accordingly.
5. Day One Rights: Protecting Your Business
If unfair dismissal protections apply from day one, businesses must be proactive in:
- Strengthening hiring processes to ensure cultural and role fit.
- Enhancing onboarding programs to support new employees.
- Training managers on fair dismissal processes to minimise legal risks.
As these changes take effect, businesses that adapt early will be best positioned for success. Need guidance on workforce planning, compliance, or hiring strategies? Our team is here to help.
Give us a call on 0161 532 8252 or email alex.platt@ukstaffinggroup.com
