The UK economy is facing a turbulent period, with businesses preparing for significant cost increases due to upcoming National Insurance (NI) hikes and minimum wage rises. These changes will have a major financial and operational impact, particularly on SMEs, many of whom are already feeling the strain of rising inflation and recruitment challenges.
On top of this the Government are steaming ahead with large scale changes to employment law all of which has a significant impact on businesses, particularly SME’s.
So, what do business owners and HR professionals need to consider? And how can you prepare your business to navigate these changes effectively?
Key challenges businesses are facing in 2025
1. Increased National Insurance contributions
From April 2025, employers will face an increase in National Insurance contributions—a move that could add thousands of pounds to annual payroll costs. This increase will put additional pressure on cash flow, hiring decisions, and long-term workforce planning.
2. Rising Minimum Wage
The National Minimum Wage and National Living Wage are set to rise significantly, with increases affecting businesses across all sectors. Employers must ensure they are compliant with these changes.
3. Compliance with new HR regulations
With the ever-changing employment landscape, businesses must stay up to date with new HR legislation, including:
- Enhanced employee rights regarding new day one rights and flexible working
- Introduction of new types of statutory leave
- Changes to long standing policies and processes
- Increasing the time frames for employees to submit employment tribunal claims
How can businesses prepare?
To mitigate financial risks and ensure compliance, businesses must take a proactive approach. Join our exclusive HR & Employee Benefits webinar on 12th March where will provide information on the proposed changes and practical solutions to making sure you stay compliant with the law. We will also explore wellbeing in the workplace to ensure we continue to keep our key talent engaged to prevent expensive and lengthy recruitment processes.
What you will gain from attending:
Practical HR guidance – Get clear action plans for managing absence, disciplinary issues, and recruitment.
Interactive Q&A with experts – Ask your most pressing HR and business-related questions.
Date: Wednesday, 12th March
Don't let these challenges catch you off guard—take control of your business strategy and plan ahead. Register today and gain the tools and insights needed to navigate the evolving employment landscape.’
