How to tackle the new National Living Wage

posted by 3 years ago in Tips
SMEs aren’t coping with the National Living Wage  

Small to medium-sized businesses within the UK are finding it hard to cope with the new National Living Wage and the demands that follow according to research conducted by the Federation of Small Businesses (FSB.)

From the research, they found that 47% of smaller businesses believe that wages are now the key factor causing business costs to escalate.

So as it is #LivingWageWeek, as a business owner what can you do to avoid staff haggling with you?

Bonus schemes

Getting staff to earn their extra pocket money is a great way to determine whether they are worth the extra cash. When offering a bonus scheme for staff to work on you must set targets that come with time limits so that they work towards a deadline with a goal in mind.

Staff incentives

Another way to praise staff and get them to work harder is by offering staff incentives, this might make them work against each other but friendly competition is never a bad thing (or is it?!) By having employees compete with one another you are able to see which staff work the hardest for something which shows great to determination and morale.

Staff Treats

If you are blessed enough to have a full team that work exceptionally hard 24/7 then instead of making them work harder for incentives and bonuses why not treat them all to a staff event, whether that is lunch on you or a night out, either are surely going to make your staff feel appreciated enough that they don’t feel like asking for more!

Hire apprentices!

Apprentices are great when you want to train staff a certain way as they are starting from the beginning, not to mention the ages of an apprentice is 16-24 which means you won’t suffer the new increased wage set for those aged 25 and over. It might sound like cheap labour but an apprentice can be a real asset to your business, who will grow within the company. Sometimes an apprentice with passion is better than those with experience but no desire.