The government has signalled its intention to reset the UK labour market in order to "make work pay”. Measures in its first Budget, and the proposed Employment Rights Bill, represent a generational shift in the deal relationship between employers, employees and trade unions.
The ambitious overhaul of employment regulations will transform six key areas affecting employers: workers’ rights (individual and collective), pay and tax, DEI reporting, trade unions relations and enforcement.
The scale and volume of these provisions present a major challenge for organisations, on several levels.
Combined they will dramatically increase the cost of employment with the NIC threshold change, increasing costs by around £615 per worker in most cases, in addition to the rise in the overall rate of employer NIC. And with a raft of new rules for firms to comply with, the cost of that compliance will go up – along with the introduction of a brand new regulator, The Fair Work Agency.
Prepare for change
Adapting to such far-reaching disruption change demands a holistic response.
Your first priority should be to understand the cumulative effect of the government’s proposals on your workforce strategy, day-to-day operations, and cost base.
The right approach will then depend on a number of factors that are unique to each organisation – including your:
- workforce profile
- employee value proposition
- reward strategy
- employment terms and conditions
- working arrangements
- operational structure
- HR and payroll systems
From strategy to action
Our team of legal and tax experts can help you navigate workforce change and ensure compliance. We’ll help you formulate your response – at a strategic and operational level – then implement it
We'll start by taking you through four key steps to generate essential insights, and turn them into action:
- Assessment: Evaluate the effects of the proposed changes on your firm’s employment policies, processes and costs.
- Prioritisation: Understand what to do in the short, medium and long term, and identify any ‘no regrets’ you can take now to get ahead of the curve.
- Engagement: Work with your key stakeholders to manage the operational and cost implications.
- Monitoring: Track the progress of the proposals and their likely impact as legislation and consultations progress, and more information becomes available.
From there, we’ll work with your team to review and adapt your workforce strategy and structure; operational policies and processes; employment contracts; and HR and payroll systems.
For example, we may model the cost impact of the new National Minimum Wage rates for your pay structures, and identify your data requirements for enhanced pay-gap reporting. We can also assess compliance across your labour supply chain, and identify any risks.
Once your plan is in place, we’ll help you develop a communications programme to explain your actions to staff and other stakeholders.
The employment landscape is changing. Get in touch to see how we can help you evolve your workforce strategy. Watch this space to stay up to date on the latest Make Work Pay developments.
