• Swindon & Wiltshire Experts
• Thursday April 16 2026
• Author Name: Helen Imbusi

Why expert HR advice is vital amid rising employment costs

As businesses grapple with the compounding pressures of rising employment costs and a volatile economic landscape, Helen Imbusi at the HR Dept says expert advice is more important than ever.

UK employers are currently facing a perfect storm of financial challenges. The recent rise in the National Minimum Wage has created a significant ripple, with across-the-board salary adjustments to  pay differentials.

This, coupled with last year’s National Insurance increases and the persistent cost-of-living crisis, has left many directors struggling to balance employee rewards with the survival of the business.

External factors continue to exacerbate the situation, with high interest rates, rising inflation, and a surge in fuel and utility costs – driven in part by ongoing instability in the Middle East – squeezing profit margins to the limit.

The hospitality sector has been particularly hard hit. In one recent example, a business that opened a new venue with staff on guaranteed hours was forced to transition to zero-hours contracts as a short-term measure to manage fluctuating demand.

However, with the Employment Rights Act set to remove zero-hours contracts as an option from 2027, businesses are losing flexibility just when they need it most.

Employment legislation on the one hand, and the economic conditions on the other, means businesses are treading a tightrope.

They have to remain flexible – but in a way that complies with employment law. Now more than ever, expert advice on navigating a path through is needed. You have to do everything you can to protect your business while remaining compliant.

This current era represents one of the most intricate scenarios for business owners in recent memory, following a 15-year accumulation of global challenges, including the credit crunch, the pandemic, and prolonged minimal economic growth.

There is an arena right now where business owners will need to keep tweaking and pivoting. It’s all about navigating a path to protect the workforce without compromising the financial integrity of the company.

Helen Imbusi is head of HR consultancy at the HR Dept Swindon, North Wiltshire and East Cotswolds