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  • Writer's pictureSusan Wakelin

How can HR support Employers with the rise in cost of living?

Updated: Oct 11, 2022


Reducing Employee Costs
Cost of Living Rising

The Living Wage Foundation has now announced an increase in the "real" living wage for UK employees. The new hourly rate has risen by 10.1% to £10.90 throughout the UK and £11.95 in London.


The Living Wage Foundation Director, Katherine Chapman, said: "With living costs rising so rapidly, millions are facing an awful "heat or eat" choice this winter - that's why a real Living Wage is more vital than ever".


As many as 11,000 employers across the UK are committed to paying the voluntary Living Wage. However, employers are experiencing increased business costs and may struggle to meet this increase, or even pay above the statutory minimum hourly rate of £9.50 per hour for workers aged 23 and over.



Many large UK businesses are supporting their employees by offering additional pay increases and bonuses.


However, small businesses may struggle during these difficult times, and think their only choice is to make redundancies or reduce hours of work to save money.


Employers considering reducing their employee headcount or costs, should think carefully about alternatives before doing so, such as how to cut other business costs or how to increase productivity or sales.


What can SWan HR Consultancy do to help?


Employee costs are often an employer's largest expense, but also their largest asset.


At SWan HR we can help you consider safer ways to reduce these costs, such as:


  • reducing discretionary bonuses

  • reducing travel costs

  • offering unpaid holiday

  • reducing sickness absence

  • improving performance

  • reducing turnover

  • internal training to enable employees to take on more responsibility


Redundancies


Rushing into decisions such as making redundancies can cost a business more in the long run. Businesses should take their time, think carefully and make the best decision for their business and their staff.



SWan HR is dedicated to helping small businesses, make the right choices. We provide practical, tailor-made specialist HR advice and support during these difficult times.


We offer a free half-hour consultation, so contact us now!

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