It’s been another busy month for local businesses, and staffing and wages are still high on the list of challenges facing employers. April saw the introduction of the largest ever cash increase to the National Living Wage – at 9.7 per cent, the highest in percentage terms since its introduction in 2016. The hourly rate paid to adult workers has leapt from £9.50 to £10.42 and retail, hospitality, cleaning and maintenance workers are chief among those who will benefit. For someone working full-time, this represents a rise of more than £1,600 per year. The importance of ensuring that staff are paid correctly, particularly for companies which use seasonal workers or operate on a shift basis, shouldn’t be underestimated, as those who fail to address payroll changes run the risk of HMRC fines. While we all want a society where people are paid fairly and able to support themselves, the National Living Wage increase has created something of a ripple effect for many employers. As pay has risen for this group, the knock-on effect is that other workers are reasonably asking whether their wages will benefit from a similar percentage increase? The challenge for many companies is whether a blanket increase is affordable, particularly at a time when energy and material costs have spiralled. Some firms are being forced to look again at efficiencies and to examine staff costs against other aspects of their business. Areas such as bookkeeping and marketing can often be outsourced for less than the cost of a full-time employee, and asset finance-backed investment in machinery or equipment can often enable a company to automate production lines and reduce manpower. These are tough decisions for any company, but there are several finance products which may help to ease the current pressures on businesses. As the leisure and tourism sector gears up for what is anticipated to be a busy season, as consumers spend more cautiously and staycation once again, a merchant cash advance can provide a cash boost and is only repaid as card payments are taken. For manufacturing and processing firms, invoice discounting – now a highly flexible product – can enable a company to receive early payment and keep production and cashflow moving. It’s a truism that tackling things early, before financial problems escalate, is always the best approach and we are here to help any companies which need to grapple with rising staffing costs. Finance should be a tool to help your company grow, so take time this month to review your operations and explore new ways to navigate the changes ahead. (CTA) For more information, contact Michael Moore at Complete Commercial Finance on 01553 611619 or visit ccf.finance Image of Michael Moore provided by Complete Commercial Finance
