• Swindon & Wiltshire Experts
• Wednesday November 13 2024
• Author Name: Peter Jones

Businesses can rise to the challenge presented by the Budget – the HR Dept

Just over a fortnight after the Budget, and with businesses still grappling with what it might mean for their organisations, Peter Jones, managing director of the HR Dept Swindon, North Wiltshire and East Cotswolds says company owners should look for potential opportunities.

There is no doubt some of the measures announced in the Budget will significantly impact businesses, particularly those with large workforces or operating on tight margins.

But by being proactive and adapting, businesses can rise to the challenge.

The key changes for employers are the rise in the National Living Wage from April, and higher employer National Insurance contributions.

While the wage rise in particular is a positive change for employees, both measures will increase employment costs.

It means that businesses will need to rethink their employment and productivity strategies to sustain profitability without compromising quality or growth.

Up-skilling existing teams, by investing in staff development, could reduce the need for taking on additional employees.

Training programmes in technical skills or supervisory roles can create a more versatile workforce, reducing the need for additional hires.

Likewise, regular performance reviews and feedback sessions can help employees stay aligned with business goals and improve productivity.

By setting clear expectations and identifying areas for improvement, employers can foster a more engaged and efficient team, ensuring that each hire contributes maximum value.

Reviewing operations to make efficiencies and avoid duplication, was essential. Restructuring roles or consolidating responsibilities could free up resources and reduce unnecessary costs, allowing businesses to operate more leanly and strategically.

There could also be benefits to investing in tech, machinery or AI to automate repetitive tasks and reduce reliance on manual labour. This approach can improve long-term productivity and reduce labour costs without compromising output quality.

While the immediate impact of these changes may be challenging, they also present an opportunity.

With increased wage costs, many businesses may find it more viable to focus on creating a highly skilled, productive workforce, similar to the approach taken by several European economies. Emphasising training, efficiency, and the integration of technology could lead to a leaner but more skilled workforce, driving long-term growth and stability.

By implementing these strategies, businesses can not only offset the initial burden of rising employment costs but also position themselves as resilient, future-ready employers.

Though the adjustments may be challenging, they can ultimately lead to a stronger, more competitive UK economy driven by innovation and productivity.

Peter Jones runs the HR Dept in Swindon and Wiltshire https://www.hrdept.co.uk/swindon-north-wiltshire-east-cotswolds/