The news of the proposed minimum wage rise has been met with some stern words, some even stating “Raising the minimum wage will kill jobs”, the fear being that employers will feel the financial sting of increased wages and in order to maintain the financial stability of their respective businesses will have to make some tough calls regarding their staff members ‘ongoing future retention’.
The Route Ahead
Plans put forward by the government state that not only is there already an established idea that the minimum wage is to rise in 2014 by 3%, but there is also talk of further expansion to boost the rate further still by linking minimum wage rate to the average income from across the nation.
This of course makes most employees roll their eyes with $$$ signs, but for employers the idea that staffing costs could rise anywhere from ten to thirty percent on the current rate. The maths is harsh but simple, in a small company with just three employees there would have to an additional £13,200 pounds every year to cover such proposed ideas. That’s enough additional cost that normally a business could look to hire another employee.
There is a genuine and real concern that political effects ‘could’ cause smaller businesses to really feel the economic bite and even have an effect on levels of employment across the UK.
Think Future
If you’re running a business and you employee a handful of people, have you contemplated the future of your business have you sat down and worked out the likely impact of wage rises. Be prepared, know what is coming and take actions to ensure your business can continue successfully.
Our business, every day is focused on helping people close their companies, those companies were peoples livelihood or dreams and yet when changes like this come about we invariably see more cases to address. We have always been proud of our ability to do what we do, but at the same time realise that the UK needs successful business, it needs entrepreneurs it needs people with dreams. Do what you can before you have to possibly think about calling us for our help.
