With the compulsory National Living Wage springing into action on April 1st, and all over-25’s being entitled to a minimum of £7.20 per hour, how will this stack up for employers, the running of their business and recruiting new staff?
Taking into account the ever increasing cost of living in the UK, the National Living Wage is undoubtedly welcomed news for employees, and the increase from the minimum wage (£6.70) is long overdue. With this, the pressure is on for companies to deliver and some are already putting in place the voluntary ‘Living Wage’.
In a candidate driven market employers need to take note and make sure they are not left behind in attracting the best people. Be forward thinking and take the new legislation in your stride:
The Candidate market has never been so strong and simply offering the minimum National Wage may not be enough. Quality people are hard to come by and if you want to retain and motivate them in their role exceeding the minimum pay requirement will only work to boost your reputation. Admittedly for small businesses they will have to swallow the increased costs, but commitment to candidates mean you will only get more in return as they will feel more fulfilled.
Pay The Price
If you want quality candidates you’ll need to make sure you are offering a competitive salary – it’s obvious to many, but all too often clients need reminding – the more you pay the better quality of candidate you will get. The introduction of the new legislation means it’s time to take note – if you want good people you need to attract them with a strong salary as that’s what you’re up against from other companies.
Hand-in-hand with an increase in salary comes an increase in staff morale and productivity. Stretching your budget to offer that little bit more than your competitors, will help to retain good people and thus continue to grow your business. With an increase in wage bills be cautious not to slash your benefits package to subside the costs, as potential employees are becoming increasingly aware of this and expectant of higher salaries as well as competitive benefits.
Attracting candidates through pay is one thing, but in a candidate led market they will also be swayed by the culture of a business. Think about how your company is represented when a candidate comes for interview and that you sell the benefits of working at your company to ensure you get buy-in. When you offer a candidate it is no longer a given that they will accept, they have choices so having a quality culture with good benefits will turn heads.
A good structured recruitment process will mean that you have a proven procedure that will minimise delays between interviews and ensure the candidate doesn’t lose interest. Remember the time lost in between interviews allows other businesses to approach your candidate and potentially hire them first. Minimise the risks by small gaps between interviews, or if a potential employee is that strong don’t worry about going through the procedure of a second interview. Act fast and make sure it is your company that secures the golden candidate.
Ahead of the Game
Remember the National Living Wage is a minimum, and with the voluntary Living Wage rate set at £8.25 across the UK (£9.20 London) some employers are already turning their focus to this – and in turn are ahead of the game. Although the new law is set at £7.20 this is expected to grow to £9 an hour by 2020 – so keep this in mind as levels are only on the increase.
To talk to one of our team about offering competitive salaries in your recruitment drive, contact Rebecca on 0114 221 0550.