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What the NMW Increase 2024 Means for Small Businesses

The Government have announced their plans to increase the National Minimum Wage (NMW) to £11.44 per hour. In addition to a 10% increase, the rate will apply to workers aged 21 and over as opposed to the previous age banding of 23 and over.


Naturally, everyone's first response is to think about the additional cost for those already on the NMW. But there is also the issue of maintaining a suitable pay gap for workers in more skilled roles.


Here are the Lilac Team's Top Tips on how you can start to regain control of the ever increasing labour costs...


Labour Audit

This is an ideal time to review what hours your staff are currently working and compare those hours against the hours of work you have for them to do. You might find that there's an opportunity to reduce staff hours either temporarily or permanently (remember to check that your contracts permit this).


Shift Restructure

Consider whether the way your team works at the moment is the most cost effective? Could you split your teams into shifts so that you cover more productive hours with the same number of people?


Pay Audit

Review what your staff are currently paid and calculate what their pay will be come April next year. If you know the exact number, you can start taking steps to prepare for the increased cost. It also gives you a chance to consider what other staff who are paid over NMW should receive as an increase.


Performance Reviews

The best way to ensure that your staff are working to the best of their ability, maximising your return on investment in them, is to regularly review their performance, give feedback and set targets. Do this as regularly as you reasonably can to see the best results.


Cut Unnecessary Costs

We're not just talking about switching lights off to save energy. Cut out paying for things that don't help drive your business forward but continue to prioritise staff wellbeing, training and engagement to ensure that you get the best out of your team.


And if you need help with any of the above, you can book a Consult Call in with the team right here.

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