ARE YOUR HIRING PLANS READY FOR INCREASED NATIONAL INSURANCE CONTRIBUTIONS?

Posted on 23rd March 2025

With the rise in employer National Insurance contributions and the increase in the national living wage due to take effect in April, it’s essential for businesses to adapt their hiring strategies to manage costs effectively while maintaining a competitive workforce and continuing to hire the talent they need. Here are our 5 top tips to ensure your hiring strategy remains cost effective and impactful for your business when new legislation takes effect.

PRIORITISE SKILLS BASED HIRING

One key adjustment is to prioritise skill-based hiring. By focusing on candidates with strong, transferable skills rather than focusing on rigid qualifications, businesses will be able to identify individuals who can quickly adapt and add value at a more cost-effective hiring level. A truly transferable skill-set will also reduce the need for extensive training and long-term employee development expenses.

EMBRACE TECHNOLOGY

Another way businesses can optimise hiring strategies is by embracing new technologies. The effective use of now widely-used artificial intelligence (AI) software can simplify certain job functions and help other roles and departments to run more effectively. When utilised properly, this can ease the burden of high-demand job descriptions. AI can also be used selectively in hiring processes to bring further cost-efficiencies.

TEMPORARY CANDIDATES

Businesses can also explore alternative employment models, such as part-time hires and temporary contracts to balance staffing costs against workforce needs. As well as proving immediate cost benefits over permanent, full-time hires, these alternatives approaches can give businesses time to assess the long term viability and necessity of particular business functions. As such, by incorporating flexible staffing solutions, businesses can remain agile and adaptable while managing the financial impact of increased employer contributions.

BE AN EMPLOYER OF CHOICE

Lastly, businesses should focus on enhancing employer branding and offering non-monetary benefits to attract top talent without solely relying on salary increases. Emphasising a positive company culture, career growth opportunities, flexible working arrangements, and strong employee well-being initiatives can make a huge difference for a business to be more attractive to job seekers. By positioning the organisation as an employer of choice, recruiters can attract skilled professionals while managing salary-related cost pressures effectively.

CREATE THE RIGHT CULTURAL FIT

Ensuring a great cultural fit between employer and employee goes beyond the benefits of being an employer of choice. A great cultural fit encapsulates everything from harmonious team dynamics and communication styles through to working style and shared commercial values. By getting this right, not only will salaries become secondary to workplace cohesion but, crucially, rehiring will become far less frequent as employee retention levels remain high.

WE’RE READY TO SHAPE YOUR HIRING STRATEGY

Whether it’s dealing with increased staffing overheads, salary benchmarking or assisting with your candidate experience, Netbox Recruitment are your local experts in talent attraction, creating long-term, successful new hires for your business.