As the dust settles on the new UK government’ new budget it is clear there are a number of challenges to overcome.
Many balance sheets are still recovering from the pandemic, that is to say both personal and business balance sheets such was the impact of the pandemic.
The government plans to increase the national minimum wage by 6.7% and then increase National Insurance contributions to a new high of 15% from 13.8%.
It is absolutely right and proper people are paid fairly for the work they do, are paid correctly and treated well, these wage increases are most welcome for the people receiving them.
The two tax increases will be paid for by employers, the cost of employing people has increased steeply.
Customers may be asked to fund these increases or margins will be lowered potentially resulting in lower profits.
- Quick scenario – an employer with 200 warehouse employees has an annual salary bill of c£5m.
- The new tax increases add £500k – that’s a big hike.
- Of the £500k, £200k is National Insurance the remaining £300k is the National Minimum Wage increase.
It is vital all mitigating steps are taken to reduce the impact of this cost escalation.
Measuring lost and unproductive time using Vitesse would be one quick and straight forward way – using Units Per Hour as a measure of performance in a warehouse does not highlight where time is being spent productively or unproductively just that times spent moving x amount of product.
Measuring efficiency instead of Units Per Hour will also enable the employer to determine how optimal the warehouse environment is, whilst ensuring fairness prevails and performers are recognised. Measuring efficiency enables pro active steps to be taken, mid shift, to protect the cost base.
Vitesse is the perfect antidote to a costly budget.
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