With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity to attract and retain talent and must ensure that they are fully prepared for the change.
Bhanu Dhir, Group CEO of employment support specialists, Steps To Work, discusses the National Insurance Contributions reversal and what employers can do to prepare for November.
‘’The decision to reverse contributions is especially welcomed by smaller businesses and those sectors heavily impacted by the pandemic, such as hospitality, as it reduces the cost of employing people, and therefore doing business. However, employers should not remain passive and accept the reduced cost of employment. Now companies should make sure that they reinvest funds saved into growing their businesses, whilst attracting and retaining talent.
‘’This can be through increasing financial pension contributions, supporting staff through benefits or training, or reinvesting back into the business to support growth or help mitigate the impacts of inflation. In an increasingly competitive market, to entice and keep great talent, companies can even increase staff wages.
“We are eager to work with employers to introduce them to new sources of talent and the change in policy over National Insurance Contributions gives employers a chance to reflect upon the adequacy of their supply of talent.
‘’Although the change does not come into effect until November, it’s crucial for employers to begin taking action and having conversations with their staff and HR departments about changes that will impact them.’’