The Rising Cost of Payroll Management
Many economic and social factors are currently having impacts on wage increases, including upcoming changes to minimum wage rates and taxation. In this edition of the BachmannHR Group blog, we'll be looking in more detail at some of these factors and how they are set to affect payroll management costs in the future.
Last month, the ONS (Office of National Statistics) published data that revealed the amount of available vacancies had hit a record peak of more than four vacancies to every 100 employee positions. This has resulted in longer times to find and recruit suitable candidates, which leaves remaining employees responsible for a heavier workload.
In what has been variously termed 'the great resignation' and 'the big quit', more employees than ever before have been voluntarily resigning from their positions. Though resignation rates dropped sharply at the beginning of the pandemic, they returned to pre-pandemic levels as early as July of 2020. By April 2021, resignation rates reached record numbers. A lower number of available employees makes wages go up, with a corresponding rise in recruitment cost. Companies are struggling to fill existing vacancies and are also losing staff to competing firms.
National Insurance (NI)
The UK government has announced that a 1.25% increase in National Insurance Contributions will come into effect in April of 2022; the hike is set to be used to increase spending on health and social care. This increase will see the current rate of NI rise to 15.05% from 13.8%, effectively increasing a company's NI bill by 9%.
National Minimum Wage and National Living Wage
The National Minimum Wage and National Living Wage have been subject to regular increases over recent years. In April of 2022, the National Living Wage is set to increase by 6.6%, which will directly impact gross payroll costs.
At BachmannHR Group, we offer a reliable payroll management service to our clients. These services are provided at an extremely competitive price point and help to save our clients valuable time and money, allowing them to relax safe in the knowledge that everything is being taken care of in a consistent, transparent and effective manner. We also offer an efficient, comprehensive recruitment service to companies working in the marine sector.
For more details about our payroll management, crew recruitment and other professional services, please browse the BachmannHR Group website. If you need any further information or advice, our dedicated customer service team will be happy to assist you so please do not hesitate to get in touch.