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Our take aways from People Puzzles excellent webinar "The war on cost"

 



Navigating Workforce Challenges in 2024: Key Insights from People Puzzles Webinar

The Changing Landscape for UK Businesses

UK businesses are facing significant changes due to new government policies:

  • National Insurance costs are rising, increasing employment expenses.
  • Sick pay is going to be payable from day one of employment, impacting financial planning.
  • Zero-hour contracts are being phased out, requiring businesses to rethink workforce planning.

With these shifts, companies must run lean, efficient operations to maintain profitability and growth.

Investing in People: The Key to Success

While customer satisfaction remains crucial, it is engaged and enthusiastic employees who deliver excellent service. However, most SMEs struggle to attract quality employees and need to rethink their approach to talent management.

Practical Strategies for Workforce Investment

  1. Incentivize Employee Contributions Reward employees for suggestions that improve efficiencies. Consider profit-sharing, commission structures, and performance-based pay instead of solely relying on fixed wages.
  2. Improve Recruitment & Retention The cost of external recruitment in the UK averages £30K per hire, including opportunity costs. Reducing employee churn by 20% is highly profitable and achievable with the right strategies. A key factor in retention is career development—employees stay longer when they see a growth path.
  3. Address Sickness & Disengagement Employee disengagement and absenteeism cost UK businesses £77 billion annually in lost productivity. Investing in leadership development, operational efficiencies, and talent management can significantly improve engagement.
  4. Maximize Internal Talent Where possible, promote from within to fill management positions rather than hiring externally. Provide succession planning and leadership training to prepare employees for future roles.

Creating a Productive & Engaged Workforce

  • Offer benefits that employees truly value rather than generic perks.
  • Provide regular feedback—but only ask for input if you're prepared to act on it and communicate the changes.
  • Foster a results-driven mindset to align employees with business goals.
  • Cut waste, not people—efficiency improvements should focus on smarter operations, not just reducing headcount.

Final Takeaway

For SMEs, the key to navigating these economic and legislative changes is investing strategically in their people. A well-engaged workforce not only drives customer satisfaction but also reduces costs, improves productivity, and strengthens business resilience for the future.


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