Friday, April 6, 2018
The National Living Wage
The new rate represents a 50p rise on the current minimum wage and the money will need to be found from somewhere. Clearly, some budgeting needs to take place.
A report from the Chartered Institute of Professional Development found a split in where businesses saw the money coming from. Many large businesses felt the National Living Wage would stimulate increased productivity. Smaller businesses were more downbeat, expecting profits to take a hit.
Think beyond the £7.20 figure! That may be the headline rate for April 2016, but don't forget that it's expected to rise year by year to £9 by 2020. And then there are your other pay grades. Will these have to rise too, to maintain the differentials for various roles?
The 'age 25' threshold may catch some employers out. Are your records good enough to pick up when younger members of staff turn 25 and potentially become entitled to a higher wage? Make sure your systems and payroll capabilities are up to scratch.
Stay positive! Big business is expecting more productivity, so think about this for your business too. Research by The Living Wage Foundation found that increased payroll costs were offset by improved staff performance, retention and lower absenteeism. The HR Dept can help you address all your payroll needs, so get in touch for advice and solutions.
Click here to read HR Dept's monthly newsletters