Retailers should plan for ‘National Living Wage rises as soon as possible’
Independent retailers and forecourt operators are being urged to plan now for National Minimum Wage and National Living Wage rises.
From 1st April 2023 the National Minimum Wage (NMW) and the National Living Wage (NLW) will rise by the largest amounts since the NMW was introduced in 1998. This will come as a nasty shock to many convenience and fuel retailers who also need to cope with steep increases in energy costs at this same time.
The new NLW rise means the cost of a typical employee, working 37.5 hours a week will jump from £451 a week to £495 when wages, National Insurance and holiday accrual are taken into account.
PREPARE FINANCES
S4labour is an established rotas, people, and payroll solution, which manages labour planning and costs with accuracy and ease. The system offers full control of rota budgets with visibility of weekly, daily and even hourly costs, so retailers know what they are paying out before they have overspent their budget.
Garry Craft, S4labour, Managing Director Convenience Stores, said: “It is essential that every independent business takes note of the changes due to take effect in April and reviews their workers’ pay rates where applicable.
‘The NMW and NLW threshold changes can create additional work for independent retailers, putting pressure on them to balance new budgets and overheads’
“We are advising independent retailers to ensure they are commencing increases from the correct date in April. These new changes will impact the profitability of every store, so they should prepare their finances accordingly.
“We make the changes automatically for all existing clients whether they pay their employees on a weekly or monthly basis.”
NAVIGATING CHANGES
The NMW and NLW threshold changes can create additional work for independent retailers, putting pressure on them to balance new budgets and overheads. Navigating these changes requires the right information and processes – and with the correct tools from S4labour, retailers can deliver better controls, planning and workflows, and reduce risks of compliance failures.
“It can be expensive for retailers to run their own payroll in-house. We have a cost-effective option available which helps those who do not have the time or the trained staff to do this in-house. Once hours are confirmed for store employees, payroll is processed without any further work from the employer,” added Craft.
The S4labour app is updated automatically, so retailers employing teams of people never need to worry about implementing new regulations and can focus on working in their stores and providing their local communities with excellent service.
TOP TIPS
Tips for retailers from S4labour:
*Get visibility of what you have been spending so that you can start to see the areas you might be overspending. The only way to do this is with a system that gives week-by-week and day-by-day insight into what you are spending, rather than just looking at totals for the quarter.
*Get visibility of what you are spending before you have spent it, so you are not burdened with any unexpected costs. Seeing your costs as you build the rota has a significant impact on efficiencies, and you can avoid finding out too late from the accountant that you have overspent.
*Ensure you are paying for actual hours worked. Benchmark data shows that the introduction of digital time and attendance saves on average 15 minutes per employee per week compared to relying on inaccurate timesheets.
*Make time savings where you can. S4labour are experts in reducing admin, which can save hours when taken out of the back office and management and returned to the shop floor.
*Get more out of your team. Driving the engagement and motivation of staff with effective communication makes a big difference to how well your labour is spent. Using a team app as a point of truth for shift allocations and tasks will increase productivity for every shift.
S4labour will be exhibiting at stand AA369 at the National Convenience Show from 24th to 26th April at NEC Birmingham. Anyone looking to hear more about their rota, people and payroll solution, are encouraged to visit the team or get in touch via the website www.s4labour.co.uk/convenience-stores
