March 14, 2017 at 1:56 pm #2698
The triple hit and how to avoid being hit at all!
According to the Federation of small businesses, labour costs are spiralling and will only get worse thanks to the aptly named triple hit!
Increases in the national minimum wage and national insurance contributions, together with the roll out of auto enrolment pension schemes could leave businesses struggling to meet extra costs and stop others from creating jobs altogether. It is worth noting that there is little immediate or direct benefit to your employees of these costs, brought about by changes in government policy. Some Staff will be hit by a reduction in their net pay if they have not previously contributed to a pension scheme! In addition to the triple hit many employers face having a less motivated workforce. In the eyes of some employees, they are effectively taking a pay cut!
To grow your business you will need to boost your labour force. We all know that the minute you make that decision the metre starts ticking. When setting up a new business the labour costs are usually one of the largest figures on your business plan and in most cases grossly underestimated as we fail to grasp the hidden costs of employing people! These hidden costs that many fail to account for such as increasing HR costs, training, sick days, jury service, wasted/unproductive time etc all ongoing and that is after the initial costs of recruitment agents, time spent interviewing and getting to that final decision of who to employ. All of this means that often the actual cost of employing that new resource is almost double and at the end of the day you are still taking a risk that you have employed the right person in the first place! With the minefield that needs to be navigated in order to employ personnel many businesses are turning to alternative sources in order to avoid the hassle and escalating costs.
So how can you avoid all of this?
Outsourcing is a great cost effective way of adding extra resources when needed. It means that you can continue to focus on growing your business. By employing the services of a company offering a wide range of products and services including payroll, social media, lead generation, telephone answering and more you are able to fill the gaps in your staffing levels, paying a set amount and no more as and when you actually need it!. Their expertise means that not only do you get all the skills you require without the need for employing full time permanent staff, you can mix and match the skill sets to your requirements and free yourself and your resources up to concentrate on doing what you do best -delivering your services to your clients.
Despite pleas from the FSB and similar small business champions it is unlikely that we will ever see costs falling and indeed with the economic situation unlikely to improve dramatically any time soon it is clear that the burden of additional employment costs will continue to be met by employers small and large alike so it is unsurprising that many businesses are turning to alternative solutions.
Contact us today 01284 245007 The Team at ABS
Let us show you how we can help your business and help you avoid the hit
March 14, 2017 at 2:59 pm #2699
this is a great article and very informative and hopefully of great value to a lot of the members here being small businesses. times are hard these days for everyone and any help or advice is greatly appreciated.
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