The employment landscape in the UK is set to undergo significant changes in April 2025. This guide provides an overview of the key legislative updates and their impact on employers and employees alike.

1. National Minimum Wage Increases

Effective April 2025, the UK government has announced the following increases to the National Minimum Wage (NMW):

• Aged 21 and over (National Living Wage): £12.21 per hour
• Aged 18-20: £10.00 per hour
• Under 18: £7.55 per hour
• Apprentices: £7.55 per hour

Employers must ensure they comply with the new rates to avoid penalties and maintain compliance with HMRC regulations.

The Government is gradually phasing out the 18–20-year rate to establish a single adult rate for those over 18. This year, the 18–20-year rate sees a significant 16.3% increase, narrowing the gap between the two bands. These increases, particularly following significant minimum wage rises in recent years and the upcoming rise in employer National Insurance contributions, will have a major impact on businesses.

Employers who previously didn’t have to worry about falling below minimum wage thresholds could now be at risk of an inadvertent breach—especially when factoring in additional hours worked, salary sacrifice schemes, and other pay deductions. For context, an employee earning the new National Living Wage of £12.21 per hour and working a 37.5- hour week will earn just under £24,000 per year. Employers should review their starting salaries and identify roles that may now be close to minimum wage thresholds.

2. Increases to Statutory Rates for Family Leave, Sick Pay, and Redundancy Pay

From April 2025, the statutory rates of pay that apply to the different types of family leave and sick pay will rise by 6.7%.

• Statutory Sick Pay (SSP): Increasing to £118.75 per week (currently £116.75).
• Family Leave Payments: Statutory maternity, paternity, adoption, neonatal care, shared parental, and parental bereavement pay will rise to £187.18 per week (currently £184.03).
• Lower Earnings Limit: The minimum weekly earnings required to qualify for these payments will increase from £123 to £125.
• Maternity Allowance Lower Earnings Limit: Remains at £30 per week.
• Statutory Redundancy Pay: An increase is expected in April 2025 to the cap on a week’s pay for calculating statutory redundancy payments, but the exact figure is yet to be confirmed

3. Carer’s Leave Entitlement

A new statutory right to unpaid leave for carers will be introduced, allowing employees with caregiving responsibilities to take up to one week of unpaid leave per year. This leave:

• Can be taken flexibly (e.g., single days or a whole week).
• Does not require a minimum length of service.
• Applies to employees caring for dependents with long-term care needs.

Employers should update leave policies accordingly and communicate the changes to staff.

4. Changes to Flexible Working Rights

The right to request flexible working will be extended from day one of employment. Key changes include:

• Employees will have the right to make two flexible working requests per year.
• Employers must respond to requests within two months.
• Employers must consult with employees before rejecting a request.

These changes aim to promote a more adaptable working environment for employees.

5. Enhanced Protections Against Sexual Harassment

Employers will have a new duty to take proactive steps to prevent sexual harassment in the workplace. Key requirements include:

• Implementing robust policies and training programs.
• Conducting risk assessments to identify areas of concern.
• Taking swift action in response to complaints.

Failure to comply may result in increased tribunal claims and financial penalties.

6. Changes to employers’ National Insurance contributions (NICs)

As an employer, you pay secondary Class 1 National Insurance contributions (NICs) on all employees’ earnings above the secondary threshold, which in the 2024/25 tax year is £9,100.

Employers’ National Insurance rates will be raised from 13.8% to 15%, effective April 2025.

The employer NICs secondary threshold will also be reduced from £9,100 to £5,000 per year, meaning more employers will become eligible to pay NICs.

These changes will increase the cost of employing staff as a result. So, to help minimise the impact on smaller businesses, the Employment Allowance will also increase.

Disclaimer: This guide is for informational purposes only and should not be considered legal advice. Always consult an employment law specialist for tailored guidance.

Offboarding is the process that occurs when an employee leaves a company, whether due to resignation, retirement, or termination. A structured offboarding process ensures a smooth transition, protects the company’s interests, and maintains positive relationships.

Benefits of Effective Offboarding:

1. Enhances Company Reputation: Treating departing employees with respect and professionalism can lead them to speak positively about the company, benefiting its image and aiding in future recruitment efforts.

2. Ensures Smooth Transitions: Proper offboarding minimizes disruptions by facilitating the seamless transfer of responsibilities, helping maintain productivity and team morale.

3. Facilitates Knowledge Transfer: Departing employees can share valuable insights, processes, and contacts with remaining staff, preserving essential knowledge within the company.

4. Reduces Security Risks: Revoking access to company systems and retrieving assets like laptops and ID badges prevent unauthorized access and protect sensitive information.

5. Mitigates Legal Risks: Completing necessary documentation and final payments ensures compliance with legal obligations and reduces the likelihood of disputes.

8 Steps to a Smooth Offboarding Process:

1. Communicate Openly: Inform relevant departments and team members about the employee’s departure in a timely manner to prepare for the transition.

2. Organize Knowledge Transfer: Have the departing employee document key workflows and train designated colleagues to ensure continuity.

3. Conduct an Exit Interview: Gather feedback on the employee’s experience to identify areas for improvement within the organization.

4. Handle Final Paperwork: Ensure all necessary documents are completed, and final payments are processed accurately and promptly.

5. Reclaim Company Assets: Collect all company property, such as laptops, phones, and access cards, to prevent unauthorized use.

6. Revoke Access: Work with IT to deactivate the employee’s access to systems, applications, and physical premises to maintain security.

7. Announce the Departure: Communicate the employee’s exit to the team professionally and consider organizing a farewell to acknowledge their contributions.

8. Review the Process: After completion, assess the offboarding process to identify any improvements for future departures.

Implementing a thoughtful offboarding process not only ensures a respectful farewell for departing employees but also strengthens the organisation’s culture and operational integrity.

It’s certainly a different recruitment market than it was 5 or even 10 years ago, with candidates and job seekers holding more power than ever before, due to a shortage in most sectors.

One our recruitment advertising partners, CV Library recently stated that poor hiring decisions are costing businesses up to £15,000 a year, so it certainly pays to get it right.

Candidates have made it well know that certain areas put them off applying for jobs, so we’ve put together 5 recruitment mistakes you could be making and how you can avoid them.

1. Badly written job adverts

94% of job seekers say they are more likely to apply for a role that has a clear job description, that explains the role in some detail along with an overview of the company. A well written advert is naturally more inviting. You need to point out key responsibilities, what skills are required, a little about the company and of course what the candidate can gain from working for you. Why is this a better opportunity than the job they are currently in. This is one area of our expertise, and now with the help of AI, you should be able to produce a marketing masterpiece.

2. A lengthy application process

Simplicity is the key. You need to be able to make the application process as easy as possible. Remember, most candidates are applying on their mobile, so they are not going to want to answer 20 questions, and if they do start, they’ll abandon the process half way through. Capture only the information you really need at the initial stage. CV, contact details etc… you can capture the rest later in the process.

3. Too many interviews

Do you really need to hold a telephone interview, an initial face to face, then a second interview, then come in and meet the MD at the final interview. If your hiring process has too many stages for candidates, they may well become impatient, or worse get snapped up by someone else. If they need to meet the MD, can he he be brought in at the end of the first interview?

4. Slow response rate

We see this all the time. The perfect candidate applies, it takes a week to acknowledge their application and a further 2 weeks to invite them in for an interview, then another week to put an offer together. If they are good, you are not going to the only party interested. Move fast.

5. Offer a good package

Consider the package you are offering. If the candidate is currently earning £30K, don’t offer them £30K and say you’ll have more progression opportunities here. The market is competitive, so you need to stay on top of current salary levels to make sure you stay in line with what your competitors are paying. Plus, what perks do you offer, what can set you apart from the crowd – it doesn’t always have to be about money.

Getting your hiring process right is key to recruiting the right person for your business, and well worth investing in – that’s where we come in, and can certainly add value to your recruitment campaign, ensuring the end result is not only a successful hire, but the right hire.

If we can be of any assistance, or offer any advice on any thing recruitment related, please don’t hesitate to get in touch with either myself or one of the team.

All the best,

Steve Wyeth 🚀

Attracting, recruiting and retaining top employees is extremely tough right now. The chances are your new hire was signed up with multiple agencies & job boards, and recently attended a number of interviews, putting pressure on you to pull out all the stops in order to entice them into your role & get them to stay once they start. So, you need to do everything you can to stop your new starters from being poached by another company or sweet talked by an agency about the “dream role” they are recruiting for.

You may think your job is complete once you make the hire, but the hard work actually starts here. Now, you need to live up to your new employees’ expectations. At this point, most employees only have one weeks’ notice period whilst in probation – so can easily leave the business, and often won’t need to work the week and leave on the spot.

So, how can you stop your new starters from being poached? There are a few key areas to look at here. From keeping contact with them during their notice period, to ensuring an effective onboarding process. Get this right and your new employee will settle in no problem. Get it wrong and you risk losing them to a competitor and having to start the process all over again.

We’ve put together 4 ways to ensure you are successful in retaining your new starters.

1. Keep in contact after they have accepted the job

Fantastic news – your candidate has accepted your job offer! They probably have a notice period to work in their current job, and if they are senior – this could be up to 3 months. But that doesn’t mean you should wait until they start the job to speak to them again, far from it.

Send them an email with any business updates, show excitement about them joining the team. This period is critical for communication and making them feel welcome. Remember, their existing employer could swoop in and make them a counter-offer that they can’t refuse. So, the better rapport you build with them at this stage, the more excited & committed they feel about their new job.

2. Eliminate first day nerves

Starting a new job is extremely nerve-wracking. Put yourself in the candidate’s shoes and consider what you’d want from a new employer on the first day of a job.

In the final week before they start, get in touch to ensure that they have all the necessary information. They know where to park, what time they need to arrive by, who to ask for on arrival, dress code and so on. While these might seem small, it can make a real difference.

Be sure to introduce them to their new colleagues as soon as possible.

3. Create an onboarding plan

The best way to do this, is to put together a clear schedule for their first 2 weeks in the role. This will include dedicated training time, inductions & meeting key personnel. Alongside this, be sure to give them tasks to crack on with, so they feel they are adding value.

It is also important for new starters to have one-to-one time with their managers to discuss what is expected of them in the role and to go over any grey areas.

4. Set clear goals

Every single employee in your company should have clear goals and objectives to work towards, this also applies to your new starters, as everyone is naturally far more productive when they have something to work towards.

This will also show that you value your new employee and they’ll be less likely to go snooping around for other job opportunities.

You should also focus on having ongoing career conversations in order to get the best out of all your employees.

What happens if your new starter does get poached?

Sadly, even if you do all the above, another company may swoop in and entice your new starter away. It’s just the nature of business and most of the time it is out of your hands.

If this happens to you and they choose to accept the offer, be sure to ask your employee for feedback. Is there anything that would have made them stay? Any issues you are not aware of? What has attracted them to the other role? All this will give you insights into why they have left and help your future hiring efforts.

Whatever you do don’t be bitter or show your anger. It’s your new starters career, not yours, so always stay professional and leave them with a positive impression of your company. You never know, you may be able to poach them back one day.

Take the above advice on board and you should stand a much better chance of retaining new starters and ultimately building a strong and stable team.

All the best,

Steve Wyeth 🚀

The Blue Rocket Recruitment August 2024 Recruitment Trends Snapshot highlights significant changes in the job market. Here are the key points:

1. Rise in Applications: There has been a notable increase in job applications, suggesting more competition among job seekers. This uptick is particularly evident in sectors like healthcare, manufacturing, and education.
2. Decline in Job Postings: Job ads have slightly decreased, indicating that employers may be more cautious with their hiring. This decline could be due to economic factors, plus August being the main holiday month, which is traditionally quiet for recruitment.
3. Remote Work Trends: Although remote roles remain popular, there has been a slight drop in their numbers. This could reflect a shift towards hybrid working models or a stabilizing demand for remote work.
4. Sector-Specific Insights:
   • Healthcare and Manufacturing: These sectors continue to see high activity, both in job postings and applications, highlighting their ongoing demand.
   • Logistics: There has been a modest increase in the number of roles, from warehouse operatives to freight & logistics coordinators, indicating companies could be getting ready for a busier Q4
   • IT and Finance: These sectors are experiencing fewer applications, possibly due to market saturation or shifts in job seeker interest.
5. Adaptation and Strategy: The report emphasizes the need for targeted recruitment strategies. Understanding candidate behaviour, such as the preference for flexible work arrangements, is crucial for successful hiring.

In conclusion, the August 2024 trends indicate a competitive job market with sector-specific dynamics. Employers should adapt their recruitment strategies to stay ahead, focusing on visibility and candidate engagement. Our team here at Blue Rocket Recruitment are ideally placed to provide you with a complete, simple direct hiring solution.

Ready to find out more?

Please call 023 8033 6633, email hi@bluerocketrec.co.uk