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Despite it being in place for several weeks now, many employers are still getting to grips with the costs and administration associated with the new national living wage. Neil Pickering, from Kronos, looks at some efficiency measures that could ease the transition.
Preparations for the national living wage should have begun several months ago, but it would be wrong to assume that there is nothing more to do when the legislation comes into force.
The increase has added almost £11 billion to the UK's wage bill overnight.
Businesses will have to implement long-term plans to counteract this extra payroll cost but, if approached in the right manner, the legislation gives them the opportunity to drive efficiency measures that will strengthen their financial performance for years to come.
Central to turning the national living wage into a positive will be a focus on every organisation’s key asset - its employees. Increasing their productivity will be vital to counteracting this extra cost and safeguarding a prosperous future for the business.
Before organisations can reap these rewards, however, there are key steps that need to be taken.
A fair day’s pay for a fair day’s work
As wages rise, making sure that each member of staff is correctly remunerated will be vital. Unnecessary expenditure must be eliminated and payroll is a great place to start.