Stay informed on National Insurance changes
In this episode of the MHR Show, James Manning and Kay Oldham from the MHR team explain all the changes to National Insurance coming in April 2025 that you need to know about.
Employer contribution rate will increase from 13.8% to 15%, and there will be a drop in the secondary threshold from £9,100 down to £5,000. National Minimum Wage and National Living Wage will also go up. This will cause an increase in costs for almost all employers, particularly those in sectors already under financial pressure like retail and hospitality.
How to manage the impact of National Insurance changes:
There are steps businesses can take to manage the impact of these changes. Consider reducing operational overheads by introducing flexible working schemes or outsourcing some tasks to make efficient use of your facilities. You can also review your compensation and benefits packages and introduce salary sacrifice schemes or non-monetary perks.
It's also important to know that reducing headcount or freezing salaries may seem like a simple solution, but in the long term they are likely to cause poor morale and will make it harder for you to retain talent. Instead, focus on optimising workforce efficiency by upskilling your employees or restructuring.
Benefits of a multigenerational workforce
In this episode, we’re also joined by positive psychology coach Zena Hall, who explains how different generations have different values and expectations of their employers. We now have five generations in the workforce, which can generate friction, but when businesses allow open communication and mutual respect between the generations, employees can thrive and feel valued.
Workplace wellbeing is key
As someone with a background in HR, Zena has seen firsthand how wellbeing is becoming a priority in organisations now that Generation Z is bringing this expectation with them to the workplace. To manage a multigenerational workforce, Zena recommends focusing on wellbeing and what it means to each generation. It’s important to understand each generation’s values and what matters to them, and from there you can improve employee experience.
Using technology to support a multigenerational workplace
It can be true that different generations may have varying skillsets when it comes to technology, but it’s important not to assume someone’s ability with tech based on their age. Some people may prefer telephone calls or emails, and others may prefer in-person meetings. It's better to focus on the individual’s preference rather than assuming what they’d prefer based on their age.
Technology can actually be a great way of connecting the different generations. When you have a platform that fosters open communication and collaboration, you’ll start to bridge the gap between your Generation Z and Baby Boomer employees.
Stay prepared for the long term with our World of Work 2050 webinar series. You’ll get on-demand access to all 12 webinars in the series as they’re released, including February’s webinar with Zena Hall on how to manage different generations in the workplace.
