Central Employment, a leading industrial labour supplier with over four decades of experience, aims to address the significant rise in the National Living Wage which took effect on April 1st 2024. The recent increase, which marks the largest in over a decade, see's the NLW surge by 9.8% from £10.42 to £11.44 per hour. This substantial hike of £1.02 represents a landmark moment in wage regulation in the UK.
In addition to this wage hike, the statutory costs to employers are also projected to increase by £0.32, encompassing annual holiday pay, employers’ National Insurance contributions, pension auto-enrollment costs, and the apprenticeship levy (applicable to businesses with a pay bill exceeding £3 million).
The North-East recruiters are devoted to adhering to the Government GLAA charge rate guidelines, with the current guidance suggesting an increase to £1.29 per hour from the existing rate of £1.15. This adjustment, underscores Central’s commitment to align with statutory requirements while also remaining sensitive to prevailing market dynamics.
Reacting to these unavoidable cost escalations, Central has diligently reviewed its operational framework to adapt to the changing landscape of the industry and taken proactive steps to reduce its service costs below the suggested threshold to minimise the impact on its clients.
Financial Director, William Palmer, emphasised the company’s proactive approach in tackling the impact of the NLW on both existing and future clients. He stated, “We are acutely aware of the challenges posed by the escalating wage rates and recognise the importance of striking a balance between regulatory compliance and operational efficiency. By streamlining our service costs and offering competitive rates, we aim to support our partners during this transitional period.”
Furthermore, Operations Director, Mark Trett, highlighted Central’s holistic candidate selection process that ensures compliance with essential criteria such as right to work verification, educational qualifications, work references, background checks, and relevant experience. The recruitment firm also provide pre-employment inductions and training, including Lean and IOSH certifications, to equip candidates with the necessary skills and knowledge for their roles. Mark stated, “We are dedicated to upholding compliance standards and providing top-tier services to our clients. By investing in training and attracting skilled professionals, we aim to deliver robust solutions and meet the demands of a competitive market.”
To facilitate cost-saving opportunities for businesses, Central has introduced discounted rates for both current and new clients. Amidst the evolving regulatory landscape, they are committed to surpassing client expectations by offering inflationbeating reductions and matching or beating existing agency rates on supply services.
The increase in the minimum wage not only marks a crucial moment in advancing economic and social equality but also calls for businesses to recalibrate their strategies to thrive in a dynamic market. By focusing on cost-efficiency, employee engagement, and market positioning, Central is poised to navigate the changing landscape with resilience and adaptability. Central remains committed to creating a positive impact on its workforce and business operations. Embracing these changes with foresight and competence, the company sets out to reinforce its position as market leaders while driving value for its clients and employees.
Contact Central’s Operations Director, Mark Trett, today to explore customised strategies that align with your business needs and leverage their expertise in industrial and manufacturing labour supply.
mark.trett@centralemployment.co.uk 0191 232 4816