A Swindon-based HR consultancy is urging the Government to do more to support small and medium-sized businesses as firms grapple with rising employment costs and changes to workplace legislation.
HR Dept Swindon, North Wiltshire and East Cotswolds says many SMEs are finding it increasingly difficult to recruit and expand following a series of employment reforms, higher National Insurance contributions and increases to the National Minimum Wage.
The company believes targeted measures to reduce the cost of employing staff would help smaller businesses invest, create jobs and take on more young people.
Peter Jones, Managing Director of the Swindon-based firm, said the challenges facing many employers were becoming increasingly apparent.
“SMEs are the backbone of the British economy, but many are finding conditions incredibly tough right now. We see this first-hand among our clients.
“Changes in the law, alongside rising tax and wage burdens, has overburdened many small businesses. We hope the Government will look at practical ways to help reduce these mounting hiring costs.”
The company says the changing employment landscape, coupled with the rapid development of artificial intelligence, is prompting some businesses to delay recruitment or reconsider expansion plans.
While recent employment reforms are intended to strengthen workers’ rights and improve pay, HR Dept argues that the additional costs have placed extra pressure on smaller employers already operating on tight margins.
Mr Jones said incentives aimed at reducing the cost of recruiting younger workers could encourage businesses to create more opportunities.
“We are seeing businesses pause their growth plans or look to automation because the cost of employment has risen exponentially.
“By helping to ease hiring costs, the Government can give SMEs the confidence they need to continue investing in the next generation of talent.”
The firm, which supports businesses across Swindon, North Wiltshire and the East Cotswolds, provides advice on employment law, HR policies, workplace documentation, staff development and employee relations.
