The release of the latest employment data should serve as a wake-up call for business owners.<\/p>\n
<\/p>\n
Over 100,000 jobs were lost in May, the worst figure in four years, with hospitality, tech and retail bearing the brunt.<\/p>\n
One of the biggest factors contributing to these figures is unquestionably the 1.2 per cent rise in Employers\u2019 National Insurance contributions (NICs).<\/p>\n
This was not entirely unexpected, but the speed and scale of the impact have taken many by surprise.<\/p>\n
When it becomes more expensive to employ someone, businesses will hesitate to hire, or may even cut back.<\/p>\n
What we are seeing now is linked to confidence, stability and the everyday decisions employers are having to make.<\/p>\n
Do we take on that new team member? Can we afford to keep our current headcount?<\/p>\n
How do we balance the books when employment costs keep rising, yet the workload does not slow down?<\/p>\n
For some sectors, particularly hospitality and retail, where margins are tight and workforces are large, these are decisions being made daily, and with real consequences.<\/p>\n
The numbers are of course, worrying, but it is not time to panic. What matters now is understanding how these changes affect your business, not just the national picture.<\/p>\n
We are seeing the pressure this is placing on clients of all sizes. So what can be done?<\/p>\n
With National Insurance going up and wages still rising, it is getting harder for many businesses to keep their cash flow steady.<\/p>\n
It is worth revisiting your staffing model and looking at how those costs are likely to track over the next six to 12 months, and not just this quarter.<\/p>\n
The Employment Allowance could offset some of the NIC increase. If your business is investing in tech or innovation, R&D tax credits may also provide support.<\/p>\n
This is where getting the right advice can make a tangible difference.<\/p>\n
For some, outsourcing non-core roles or adopting more flexible contracts might offer short-term breathing space.<\/p>\n
However, these decisions need to be taken carefully, with a clear eye on compliance and employee morale.<\/p>\n
There is already pressure on the Government to revisit its National Insurance changes, especially with the ONS admitting the data is still provisional.<\/p>\n
Wishful thinking and hoping for policy reversal, however, is not a plan.<\/p>\n
Businesses need to work with the hand given to them, while staying ready to adapt again if conditions change.<\/p>\n
The reality is that employment costs may well remain high for the foreseeable future.<\/p>\n
That does not mean businesses are powerless, far from it.<\/p>\n
However, it does mean they need to be more deliberate and proactive in how they respond.<\/p>\n
If you would like to talk through what this means for your business, or explore ways to manage the current situation, we are here to help.<\/p>\n
Contact us today and let us help you put together a strategy that works for your business. <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The release of the latest employment data should serve as a wake-up call for business owners.<\/p>\n","protected":false},"author":2,"featured_media":6428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,125,30,31,46,88,89,49],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6425"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6425"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6425\/revisions"}],"predecessor-version":[{"id":6426,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6425\/revisions\/6426"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/6428"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}