With upcoming increases in National Insurance contributions set for April 2025, a significant portion of HR decision-makers, particularly in SMEs, fear that heightened financial pressures may force them to reduce employee benefits. A recent survey by GRiD shows that over 28% of HR leaders anticipate challenges due to these increased costs, emphasizing that failing to support employees' wellbeing could lead to detrimental outcomes. The industry body highlights the importance of effective employee benefits that address multiple health and wellbeing needs, urging HR departments to clearly showcase the value of their programs amidst budget constraints.
Employers will understandably be looking at their budgets in all areas to manage the additional NI contributions and other financial pressures. It's unlikely that HR will be exempt from the tightening of purse strings, so they must prepare to demonstrate the effectiveness of their employee benefits programmes to retain the maximum possible budget for them.
GRiD is concerned that NI increases and other financial challenges may put undue pressure on employers and it's crucial they understand the value of their benefits package and support so that they're not tempted to cut expenses and thus jeopardise staff wellbeing.
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