National Living Wage: Make Sure You’re Ready
Unless you’ve been living under a rock for the past six months, you’ll no doubt be more than aware that the new regulations regarding National Living Wage will soon be rolled out. From 1st April 2016, workers in the UK aged over 25 earning the current minimum wage of £6.70 per hour will be entitled to a 50p increase.
It’s great news for many employees, with many individuals expected to take home an extra £900 a year. As an employer though, you need to make sure that you’re ready and that you’re going to be fully compliant with the new legislation by the time that April comes round.
Now of course, in an ideal world, you’d already have your plan of action entirely mapped out.
If you haven’t though, it’s important that you don’t panic. We’re here to help, and if you get started right away, we can ensure that you get to where you need to be before the deadline.
Let’s get started with looking at the tasks that you need to work through.
Consider the changes that must be made to your full suite of HR policies and procedures
It goes without saying that you may have to change the amount that you pay your staff each month. Unfortunately though, it’s not quite this simple. To make sure you’re compliant, you’re going to have to look at every aspect of your people practices.
You might need to update any recruitment materials with the new hourly rate. You might have to make changes to your employee handbook and any induction content that you share with new recruits. Take a step back, and think how the changes could have a knock-on impact, and what you’ll have to get covered.
Work with your payroll provider
If you outsource your payroll to another organization, you’re going to have to have a conversation with them ASAP to make sure that there are no administrative glitches once the new legislation comes into force.
The good news here is that if you already use Peopletime as your payroll provider we have been working with our clients, business owners just like you, making sure that we’re supporting them through all of the changes. We can answer any questions, and ensure that there is a smooth transition towards the new ruling. We find that working in collaboration here brings out the best results.
Address any issues that might arise with pay scales and employee relations
In some circumstances, raising the hourly rate of your lowest paid employees can mean that they’re now earning the same as their supervisors. Obviously, this could cause unrest. It’s likely that those with more responsibilities will take issue with the fact that they appear to be no longer receiving an incentive for their hard work.
What you do about this will depend on numerous factors, including the resources that you have available. You’re probably going to have to make some difficult decisions and it’s vital that you take a clear direction that’s well communicated with all staff.
As you can see, it’s not strictly a matter of giving your employees that extra 50p for every hour that they work. There’s a lot to consider, and there’s a very tight deadline that you need to adhere to.
Do you need some guidance for making sure that you’re compliant? Are you looking for advice to help guide you through the required changes step-by-step? Are you wondering what the benefits of having a Payroll provider are? These are all things Peopletime can help with so why not get in touch for a chat to discuss your requirements? Call on 01280 875220 or email [email protected].