Blog

You Are Here:

The national minimum wage 2016 – what’s changing?

Posted on | Posted in HR Group minutes

Yesterday morning we gathered bright and early at 8am for our HR Peer Group Meeting, where we meet and discuss topical issues over bacon butties (egg for the veggies), pastries and coffee.   This mornings hot topic – the national minimum wage 2016.

Well, who would have thought there would be so much discussion once Maxine lit the blue touch paper.  The meeting was attended by various business representatives, some for whom the impact of the national minimum wage was clearly massive, and others who soon realised that whilst they thought it wasn’t an issue that affected them, in reality it has far reaching consequences.

One of the bigger discussion areas was around the introduction of the national living wage in April 2016.  For workers over 25, the new minimum wage will be £7.20.  That’s an increase of £910 per year.  This along with the possibility that the living wage will have increased to such a point by 2020 that the cost per employee will be an additional £4,800 (figures quoted from the .gov website).

For those who rely on unskilled workers for their core workforce, this has a massive impact on wage costs.  So what is the result of this?  With increased production costs, do we end up having to increase prices?  If we can recruit younger workers at a cheaper rate to do unskilled work, what impact will this have on age discrimination?   Will a 24 year old be happy to be working alongside a 25 year old earning more for the same job, regardless of performance?Are employers going to look at under 25’s to fill their roles because its cheaper?  These issues no doubt will gradually become clearer as test cases appear before tribunals.

And then, what about those employees who are earning just above minimum wage currently.  Will they be disgruntled, as the gap between the minimum wage and them closes?  Will we see a shift up in other salaries in line?

Will employers have to look at other alternatives to keep production costs down – more automation, less staff?  Will they have to consider transport costs to attract younger low paid workers to rural locations rather than having to pay a higher rate to attract staff who can afford to run their own transport?  Will costs have to be cut in other areas, raw materials etc?

As you can see there are so many unanswered questions about the new minimum wage set to come in April 2016.  We could have talked for hours but sadly time did not permit.  It would be great to continue the discussion here, so feel free to have your say in the comments below.

If you are looking for jobs in Basingstoke or the surrounding areas or you are a company requiring staff, Wote Street People can help. Call us today on 01256 811 818 or email Maxine@wotestreetpeople.co.uk

 

 

 

 

0

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts
06 Aug 2019

It’s not (all) about the money: what graduates want from a graduate job

“Graduates want more from life – we know we’re going to live ‘til we’re 100, have five different careers in our lifetimes, so we want to enjoy ourselves.” The summer months always see an influx of enthusiastic graduates, fresh from universities and business schools across the UK; looking to establish their career path and land[…..]

Latest Posts
22 Jul 2019

Don’t take the Men-o-pause literally – women over 50 can add real value to your business!

According to the CIPD report, women over the age of 50 are the fastest growing segment of the workforce.  So, why do so many suffer from age discrimination?  Possibly it’s to do with the common, but sometimes misunderstood symptoms that affect lots of women between the ages of 45-55, including hot flushes, headaches, aches and[…..]

Latest Posts
05 Jul 2019

And the winner of the award for going ‘above and beyond’ is…

Maxine Hart, our Operations Director, won the ‘Above and Award’ at the Place to Be Proud of Awards, which took place at the Haymarket Theatre in Basingstoke recently. Destination Basingstoke runs the annual Place to Be Proud of Awards, which are hosted to recognise important contributions to Basingstoke’s community made by local individuals and organisations.[…..]

Latest Posts
27 Jun 2019

Don’t get burned by another summer holiday nightmare

Summer is a supposedly idyllic time of year that most people look forward to. Warm days at the beach, refreshing drinks in the garden, delicious ice creams in the park… But if you’re a hiring manager looking after roles that need to be constantly resourced – such as reception, call centre, or warehouse – it[…..]

Latest Posts
13 May 2019

Nifty networking plus valuable volunteering = career cheer

As Enterprise Coordinator at Enterprise M3 LEP, Shirley Ducker helps schools and colleges improve their careers and enterprise activities to engage with the world of employment. But it’s through her own personal journey that she’s learned the most about the power of networking.  Shirley’s here as a guest blogger to share her experience with you…[…..]