I was interested to see the employment figures this week, there is an all time record percentage of people working, tumbling unemployment and real wage increases. All this points to a labour market that is getting tight. The good people are hard to find and your staff can find another job quite easily. Indeed growing your business is getting easier, many of our clients are achieving good solid year on year growth.
All of this is coming at a time when the living wage is going to push up wages at the low end and auto enrolment is going to increase our costs.
What to do?
- When you price work, you might want to think about planning in higher labour costs, It may get increasingly difficult to service that growth.
- Treat your staff well; not just in terms of pay, but by making their workplace more enjoyable and less frustrating.
- Make sure you keep reviewing your prices, inflation in your costs could eat into your profit margins.
- Think about erring on having too many staff, just in case one leaves, or to cope with growth.
- Review your recruitment process to attached good people.