Navigating the minimum wage increase
By: Claire, redwigwam
How using temp staffing platforms like redwigwam can alleviate rising business costs.
As April 2024 approaches, a new challenge looms for businesses in the UK: the minimum wage increases to £11.44 per hour.
While this adjustment is great news for workers, especially in the current financial crisis, it presents significant hurdles for businesses who are already juggling tight profit margins and operational costs.
Which is where an online staffing platform like redwigwam can help. Using a platform to book and pay temporary staff can help alleviate financial strain on businesses in the face of rising costs.
Read on to find out more…
Understanding the impact
With the national minimum wage on the rise, businesses, especially those who are reliant on low-wage workers in sectors like retail, hospitality, and services, are getting ready for increased workforce costs.
For many, this will translate into higher payroll costs, potentially squeezing already narrow profit margins.
The immediate response may be to try and cut costs by reducing staff numbers – but in these industries, it isn’t always possible – it’s important to maintain levels of service to meet consumer demand and expectations (this blog post takes a detailed look at the importance of customer advocacy).
Flexible staffing solutions
In response to the upcoming minimum wage hike, businesses need agile strategies to manage their workforce effectively, while containing spiralling costs.
Temporary staffing platforms like redwigwam are here to help with just this.
By tapping into a pool of temporary staff, companies have the flexibility to adjust staffing levels according to fluctuating demand but without the commitment of long-term employment contracts or hefty recruitment expenses.
Containing costs
Opting to hire temporary staff through online platforms provides a cost-effective alternative to hiring full-time employees. Companies can mitigate the impact of the minimum wage increase by strategically supplementing their workforce with temporary workers, paying them only for the hours they work, or for project-based assignments.
This approach helps control workforce costs but at the same time, ensuring operational continuity and quality service delivery.
Operational efficiency
Temporary staff hired through online platforms can bring valuable skills and expertise to the table.
Leveraging their capabilities allows businesses to enhance operational efficiency without incurring the increased wage costs associated with permanent hires.
Whether filling in for absenteeism, managing seasonal peaks, or executing specialised projects, temporary staff can alleviate the strain on existing workforce resources and contribute to overall business productivity.
Adaptability in uncertain times
Adaptability is paramount.
The ability to scale operations swiftly in response to economic shifts and consumer demand is crucial for a business to stay competitive.
Temporary staffing platforms enable businesses to navigate uncertainty with confidence by providing access to a diverse talent pool which can be mobilised as and when needed, without the long-term commitments, time-constraints or financial risks associated with traditional hiring practices.
In conclusion
With the latest minimum wage increase on the horizon, innovative staffing solutions become more critical than ever. Temporary staffing platforms like redwigwam offer a strategic advantage, enabling businesses to navigate rising workforce costs while maintaining operational flexibility and efficiency.
By embracing temporary staff, companies can contain expenses, adapt to changing market conditions, and focus on driving growth and innovation. Embracing agile workforce management practices is essential for businesses to thrive amidst evolving economic realities. Leveraging the power of temp staffing platforms to navigate these challenges will enable businesses to emerge stronger on the other side.
