Absolutely pro everyone having a meaningful wage where they can support themselves and be valued, but what is the impact of the minimum wage?
In April the minimum wage will go up to £8.72 per hour, approximately £17,000 per year based on a 37.5 hour week. Perception is that being on the minimum wage is akin to a trainee or manual role, working in Care or within retail – all super roles but those holding other roles, admin staff, entry-level marketing, and similar professions, part-time, teaching assistants, catering staff and so on are earning this rate now and will expect an increase too; their increase will impact on those already earning their increased rate and on it goes.
The costs of employing staff rocket as it is not just the rate but holiday pay, Ni and pensions, all increases your overheads. Organisations and companies will have to think about what to do; perhaps large corporates will cope, although I’m not so sure with the likes of local corporates making redundancies in the light of the uncertainty of Brexit and wages increasing, there is a cull culture going on. So, that is when people employed are expected to do more or work fewer hours, even have zero-hours contracts which in our opinion should be banned, and still deliver and if you are having to pay someone £17,000 then they will pay an Individual with experience which in turn prevents those trying to get on to the career ladder left without jobs and opportunities.
Factor in the skills shortage and you have fewer people looking for roles; training diminishing because of costs and companies unable to expand even if they have the finances. What is the answer?