National Living Wage to benefit temporary employment sector?

Date: 3rd Friday, June, 2016

The increase in the National Living Wage as of 1st April this year is undoubtedly a double edged sword.  Excluding those on apprenticeships, those over 25 are now legally entitled to £7.20 per hour.  Good for recipients but the changes will have ramifications.  A survey undertaken by Croner Group sheds some light on this and many of the views from employers are stark. The feedback suggests that 20% of employers may be considering making redundancies to soften the increased expenditure whilst a similar proportion say they will use the self-employed to accommodate the flexibility they may need to manage costs.  The care sector is particularly vulnerable to this as the margins are often tight.  Either way, employers are looking at ways of controlling this overhead where they cannot pass increases directly onto the customer.  The moral is, wage increases have to be paid for by increasing costs, efficiency gains or remodelling employment strategies.  For the temporary employment market this may well have a positive impact as more employers move to leaner models to address fluctuations in demand.

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For more information please contact:

Neil Yorke
The Best Connection Group Ltd
e-mail: neil.yorke@thebestconnection.co.uk
www.thebestconnection.co.uk

or

Jan Blann
Market Notions
Tel/Fax. 01926 843693
Mobile.  07976 284248
e-mail: jan@marketnotions.com

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