Following the announcements today, Mark Williams, Managing Director EMEA at WorkJam said:“With no tax relief initiatives announced and the increase in employers’ National Insurance contributions (NICs) just around the corner, today’s Spring Budget only intensifies the pressure on already struggling hospitality providers.
“The extension of The Retail, Hospitality and Leisure (RHL) Business Rates Relief scheme into the next financial year will not even touch the surface of the kind of support businesses need at this turbulent time, especially at a reduced rate of 40%. While cost-cutting measures during the COVID-19 period were seen as necessary, frontline workforce industries are now being forced to optimise costs and improve efficiencies when they are already stretched to their limits.
“As a result of the NICs rise, alongside increases to the National Living Wage, UK’s businesses are expecting as much as an additional £7bn increase in annual costs. It is inevitable that businesses will attempt to lower costs by halting recruitment drives and, unfortunately, making redundancies, only further damaging the economy. Businesses are realising that cost-cutting measures must go beyond CAPEX reductions and extend to operational efficiencies, workforce optimisation, and technology investments that improve productivity without increasing overheads.
“Whilst all businesses will be attempting to do more with less, it is crucial that they are utilising tools that will protect the employee experience whilst driving productivity. Technology can play an important role in achieving this. By adopting smart and dynamic scheduling through digital workplace apps that offer automation and self-service capabilities, employers can adapt shift patterns according to supply and demand, whilst putting employees in control of their shifts and freeing up managers’ time. This has an empowering and engaging effect on the workforce, increasing job satisfaction and productivity. As such, it also improves employee retention rates, saving the recruitment costs of replacing lost workers down the line.
“By embracing technical innovation now, organisations can make significant improvements in engagement and motivation within its frontline workforce to aid long-term viability.”
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