The Workforce Management Solution to Challenges in the UK

History shows that global crises are often followed by rapid social change. It’s not surprising, then, that blue collar employees now expect far more for their work than they did before the pandemic. It’s one of many challenges those planning labour in the UK face—but your workforce management solution can help.

There’s a Lot to Think About

We all know about the UK’s current labour shortage. July saw a 61% decrease in granted visas and the slowing of inward migration from the EU. These are understandably contributing to a lack of workers in the hourly wage economy. Add to that increasing pay rates, new government policies, and the Great Resignation, and employers in the UK have a lot to think about.

Prior to and during the pandemic, the UK experienced its slowest wage growth rates since the Napoleonic wars. (Yes, really!) 18 months on, the story looks very different. Now, the economic activity we’re starting to see could lead to rapid pay increases.

April 2021 saw an inflation-busting minimum wage increase of between 1.5 and 2.2%. It was followed by August 2021’s staggering 8.8% pay growth. Later this year, the Low Pay Commission will recommend new minimum wage rates that could see a further 2-3%, increase.

Then there’s the paradox of the 1.25% Employers National Insurance increase coming in April 2022. History suggests that the £184 per week NI threshold may become a limit that employers are loath to cross if it means paying 15% NI contributions.

And what about employees and the labour force? Reports about the Great Resignation are everywhere. In the UK, September 2021 job vacancies hit an all-time high. Pay is of course a factor in an employee’s decision to leave. But access to career development and training, or even just a sense of belonging and camaraderie can factor in too. These and more can drive an employee’s decision to move on.

What does it all mean?

Read more from WorkJam partner, Axsium Group, on their blog: The Workforce Management Solution to Challenges in the UK