Swindon-based HR Dept is calling on incoming Prime Minister Andy Burnham to consider the challenges facing small and medium-sized enterprises.
Those challenges, the firm says, come in the wake of sweeping employment law reforms and rising employment costs.
SMEs across the UK are navigating a changing regulatory landscape following a succession of policy updates under the Government.
The introduction of the Employment Rights Act, hikes to National Insurance contributions, and increases to the National Minimum Wage have combined with the rapid acceleration of AI to create a demanding environment for smaller businesses.
While these policy shifts are aimed at increasing security and pay for employees, the consequence has been that many smaller employers are finding it difficult to take on new staff. In many cases, companies are reducing their headcount to make ends meet.
Peter Jones, Managing Director of HR Dept Swindon, North Wiltshire and East Cotswolds, suggested that targeted government support to reduce employment costs is now needed to help businesses grow – which was a goal outlined in Labour’s manifesto - and to encourage recruitment, particularly of young people.
He said: “SMEs are the backbone of the British economy, but many are finding conditions incredibly tough right now. We see this first-hand among our clients.
"Changes in the law, alongside rising tax and wage burdens, has overburdened many small businesses. We hope the new Prime Minister’s administration will look at practical ways to help reduce these mounting hiring costs.”
The HR Dept is calling on Downing Street to consider measures such as targeted employment incentives to lower the entry barriers for businesses looking to take on younger workers.
“We are seeing businesses pause their growth plans or look to automation because the cost of employment has risen exponentially,” Peter added.
“By helping to ease hiring costs, the government can give SMEs the confidence they need to continue investing in the next generation of talent.”
The HR Dept helps clients with everything from creating employment documentation and keeping it updated to advising on complicated HR and employment law issues, to designing appraisal systems, pay benchmarking and staff surveys - everything an in-house corporate HR department would do but far more cost-effectively.
For more about the HR Dept, visit https://www.hrdept.co.uk/swindon-north-wiltshire-east-cotswolds/
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