The National Living Wage (NLW), which came into effect in April 2016, is the minimum hourly rate employees over 25 are entitled to; currently, it is £7.83, although when first introduced it was £7.20. The increase from the minimum wage of £6.70 was predicted to put businesses under financial pressure, with the Office for Budget Responsibility stating it would result in the loss of 60,000 jobs by 2020. However post-NLW introduction research tells a different story.
Before the EU Referendum in June 2016, the Resolution Foundation surveyed 500 employers, 215 of which reported that the NLW had affected their wage bill, showing that the added cost is having an impact on businesses. However, they are not necessarily acting in the way people expected. Rather than the predicted job losses, 36% of those impacted had opted to either increase their prices or cut their profits to compensate; employees kept their jobs.
Companies are absorbing the added cost rather than opting to lose staff demonstrating that not everything is about money. Employees are integral to the success of a business, and good ones can be hard to find. Yet, they are invaluable. An employee that is compatible with your working environment, shares your principles and believes in your company’s vision is far more likely to be happy, healthy and motivated. They’ll take pride in their work, go above and beyond what you expect and encourage a positive work environment. They’ll also want to stay with your company for the long-term rather than simply using you as a stepping stone to something bigger, better or different. Recruitment, training and all the admin associated with hiring new employees takes time, effort and costs money; therefore retaining employees is extremely beneficial to the bottom-line.
It is no surprise, therefore, that when companies find and train motivated employees, they don’t want to let them go. But, how do you go about finding them?
How to find your perfect employees
From CVs and cover letters to application forms, applicant management systems and psychometric tests, there are many ways to assess potential candidates. Not all of them will give you an accurate picture though – how many times have you seen an embellished CV, or discovered that your new employee is nothing like they were in the interview? e-Talent’s unique recruitment solution not only takes the stress and time wasting out of recruitment by doing all the hard work for you – candidates apply directly online and are ranked for suitability – but it also uses psychometric tests to identify candidates that are suited to the role and your work environment. With e-Talent you can recruit your perfect employee without having to open a single CV or spend time reviewing unsuitable candidates – have a look at our product section to find out more about how e-Talent could help your business or contact us to find out more!