Employers Planning Redundancies to Cope With Introduction of the National Living Wage

blog-publish-date

10 May 2012

blog-read-duration

  A fifth of UK bosses are planning to make employees redundant in order to accommodate the introduction of the National Living Wage (NLW), according to HR experts, Croner. The research carried out in March this year by Croner’s pay and benefits specialists also reveals that 20% will be using more self-employed workers as opposed to employing people directly. However only 10% of businesses said the legislation would affect their recruitment plans. A third of businesses replying to the survey said that the NLW will have a negative impact on their business, with many of them already seeing an increase in wage and supplier costs. Viv Copeland, Head of Reward at Croner says: “The introduction of the National Living Wage has without doubt been one of the biggest game changers in recent employment history. It is estimated that around six million workers will benefit from the new legislation which is good news for them, but we wanted to know what impact this will have on employers which is why we carried out the research. “The biggest challenge emerging from this research is how employers will fund the wage increases, especially where the costs cannot be passed on to customers. This is particularly an issue in the care sector, who admitted they would have to make redundancies in order to cope with the rise in wage costs. “On a positive note 60% of respondents said they would be reviewing their overall pay and grading structures to ensure that relative pay remains fair and differences justified.” The research features in Croner’s latest briefing: The National Living Wage Research into Strategies. The briefing also highlights practical ideas for coping with the rise, including changing pay reference periods and managing poor performance.

Free to Download Employer Resources

  • Pay Awards & Forecast (September 2018)

    FREE DOWNLOAD

    Pay Awards & Forecast (September 2018...

    Read Croner Reward's expert settlement and forecast report for September 2018

    Read more
  • Sample Health & Safety Policy Statement

    FREE DOWNLOAD

    Sample Health & Safety Policy Stateme...

    Here we’ve included a free sample Health & Safety Policy Statement that UK business owners can refer to.

    Read more
  • Pay Awards & Forecast (June 2018)

    FREE DOWNLOAD

    Pay Awards & Forecast (June 2018)

    Read Croner Reward's expert Settlements and Forecasts report for June 2018

    Read more
  • How Much Does Employee Turnover Cost Your Business?

    BLOG

    How Much Does Employee Turnover Cost ...

    A recent Glassdoor survey revealed that almost 35% of hiring professionals expec...

    Read more
  • Staff Turnover: What Do You Need to Know?

    BLOG

    Staff Turnover: What Do You Need to K...

    Having a high worker turnover can have mean two things: A negative impact on you...

    Read more
  • What is Wrongful Dismissal?

    BLOG

    What is Wrongful Dismissal?

    If you breach an employee’s contract, you could be liable for wrongful dismissal...

    Read more
  • bemrose-school-derby

    CASE STUDY

    Bemrose School Derby

    “Having Croner-i saves us a lot of time and money, as we do not have to use cred

    Read more
  • wmtr

    CASE STUDY

    WMTR

    “I’d definitely recommend the Croner OnSite services and I have done already, I

    Read more
  • certikin

    CASE STUDY

    Certikin

    “Our Distribution Manager had a particularly technical query relating to respira

    Read more

Ready to focus on what you do best?

Get your free consultation and speak to an expert today.