The UK economy is fairly erratic at the moment as the impact of global fluctuations and instabilities is widely felt by individuals and businesses alike.
While some businesses are able to power through the challenges, many are facing recruitment and retention issues that could prevent them from growing or reaching their full potential.
To avoid being held back, businesses should understand the situation and how they can afford the required staff needed to keep the business going strong.
There has been a notable decline in businesses attempting to expand their teams, as the Office for National Statistics (ONS) reported a 0.9 per cent decrease in vacancies despite a 0.1 per cent decrease in unemployment between April and June.
Businesses with fewer than ten employees were particularly impacted by the challenges of hiring new teams and saw a sharper drop than businesses of other sizes.
It seems that this could be a problem if these fledgling businesses are not able to bring in the necessary team to facilitate the growth that would allow them to keep pace in the turbulent economy.
Many of these businesses have coped by utilising zero-hours contracts in order to plug the gaps in productivity, but the upcoming changes are set to make this less of a viable option.
It is estimated that the changes to zero hours contracts could cost employers between £350 million and £2.9 billion, which may result in another drop in job vacancies.
This means it is time for businesses to rethink their hiring strategies before the changes to zero hours contracts take effect.
Knowing when to take on more team members and when to pivot towards supporting existing staff can make the difference between overstretching the budget and keeping a business versatile.
While wage growth may be the slowest it has been for six years, there is still an uptick of 3.5 per cent in regular earnings.
This could suggest a shift in priorities from taking on more team members to ensuring that those who are presently employed are well taken care of.
Understanding the talent that lies within the team can let you make more informed decisions about what tasks can be managed in-house and where outsourcing could be beneficial.
Your accounting support can be comfortably outsourced to a professional team to ensure that you benefit from expert support without increasing your employment costs.
We can advise you on a range of matters to keep your business going strong while bringing your employment costs under control.
Our team can review your tax position to ensure that you are operating in a tax-efficient manner, staying compliant while freeing up funds by not paying more than you need to.
This often extends to employment costs as there are a variety of ways to compensate staff that may be less of a burden on your budget.
Salary sacrifice schemes and Benefits in Kind can be effective at supporting your team and we can help you to find the best approach for you.
Knowing that the job market is quite competitive means that employers could benefit from finding talented individuals willing to apply themselves should they be in a position to expand teams.
Speak to our team today to get professional support with employment costs to keep your business growing.
