By 2020 the cost increases from the National Living Wage alone will add a further 10% to your 2016 pay bill. Increases in the wage bill are costly for any organisation, but with over 20% of those on the current minimum wage employed by the sector, retail will be hit the hardest. And it’s not just the direct costs to your wage bill that will affect your business. Indirect costs from your supply chain will see additional cost inflation. It is important to act quickly to manage the impact and minimise risk of ‘naming and shaming’.
Our experienced team can support you manage the impact at any stage – whether you need initial guidance and advice, or need to take immediate action. We have been working with clients across the retail and consumer sector to identify opportunities to manage the cost affects and introduce savings and implementation, guiding you from strategy through to realisation.
Our recent survey found that 55% of respondents plan to allow pay differentials between under 25s and over 25 year olds in order to manage cost increases. Other popular strategies are likely to include changes to pay, grading structures and bench-marking of typical salaries. However, it’s not all about managing the impact. This is also an opportunity to address pay inequalities in time for the new Mandatory Gender Pay Gap Reporting.
We help you look beyond short term fixes. Forward-thinking organisations will ensure they have a co-ordinated strategy across the supply chain and customer-facing channels as well as reviewing underlying operating models.