Understanding the UK Labour Market Overview – October 2024 Update for Employers

Redundancies on the Rise: How HR Can Navigate Change With Clarity and Care The current economic climate continues to present significant challenges for businesses across our region. In recent months, we've witnessed the heartbreaking closure of three longstanding clients—organisations we've proudly supported since our inception. These closures represent not just the loss of businesses but profound changes for the individuals who comprised these workplace communities. As redundancies rise across various sectors, HR professionals find themselves at the centre of managing these difficult transitions. The way these processes are handled can significantly impact both departing employees and those who remain, as well as shape the organisation's reputation for years to come. Acknowledging the Human Impact Behind every redundancy statistic is a person facing uncertainty about their future, financial concerns, and often a sense of loss regarding their professional identity and workplace relationships. At our consultancy, we've been working closely with the employees affected by our clients' recent closures, providing career transition support, CV guidance, and emotional wellbeing resources. We've witnessed firsthand how compassionate, well-managed redundancy processes can make a meaningful difference during these challenging times. Legal Obligations: The Essential Foundation Any redundancy process must begin with a thorough understanding of legal requirements, which provide an important framework for fair process: Consultation must begin when redundancies are proposed, not when decisions have already been made, with timeframes varying based on the number of proposed redundancies. Selection criteria must be objective, fair, and non-discriminatory, with selection pools carefully determined and scoring systems transparently applied. Statutory redundancy pay and notice requirements must be met, with clear documentation throughout the process. Beyond Compliance: Navigating Change with Care Transparent Communication Clear, honest communication is paramount throughout the redundancy process. When one of our clients made the difficult decision to close after 15 years in business, we helped them create a comprehensive communication plan that included individual meetings with each employee, written information packs, and a dedicated contact for questions. This approach helped maintain trust during an inherently difficult process. Support for Departing Employees Supporting employees leaving the organisation demonstrates commitment to their wellbeing beyond employment. For our recently closed clients, we're providing outplacement services, workshops on modern job-seeking techniques, and one-to-one career coaching. We're also working with managers to ensure comprehensive references are prepared before the businesses fully wind down. Supporting Remaining Staff Remaining employees often experience what psychologists call "survivor syndrome"—complex feelings that may include guilt, anxiety about future job security, and increased workload pressure. HR plays a crucial role in supporting these employees by acknowledging their concerns openly, providing clarity on the organisation's direction, recognising increased pressures, and investing in development opportunities that demonstrate continued commitment. Maintaining Organisational Values How redundancies are handled reflects an organisation's values in action. One of our recently closed clients, despite financial pressures, chose to provide enhanced redundancy packages and extended employee benefits coverage for three months beyond employment end dates. This decision reflected their longstanding commitment to employee wellbeing and helped preserve their reputation as a responsible employer even as they closed their doors. Practical Guidance for HR Professionals Before Announcing Redundancies Develop a comprehensive timeline for the process, prepare all necessary documentation, train managers who will be delivering difficult news, and arrange support resources so they're immediately available when announcements are made. During the Consultation Period Maintain detailed records of all consultation meetings, create multiple feedback channels for employees to voice concerns, and regularly review the process, being willing to adapt based on feedback. After Redundancies Are Confirmed Provide departing employees with clear information about next steps, develop a plan for knowledge transfer, create opportunities for appropriate goodbyes, and focus on rebuilding engagement with remaining staff. Conclusion Managing redundancies with clarity and care represents one of the most challenging aspects of HR work. By maintaining a dual focus on legal compliance and genuine human support, HR professionals can navigate these difficult transitions while preserving dignity, trust, and organisational reputation. For the employees of our recently closed clients, we remain committed to providing ongoing support during their career transitions. And for organisations currently facing the prospect of redundancies, we stand ready to share our experience and expertise to help you manage these changes with both professionalism and compassion.  If your organisation is considering or planning redundancies and would benefit from expert guidance, please reach out to discuss how we can support you through this challenging process.

Mental Health Awareness Week takes place from 12th May to 18th May this year, offering organisations across the UK a timely opportunity to reflect on their approach to employee wellbeing. In a post-pandemic world where the boundaries between work and home life have become increasingly blurred, supporting mental health in the workplace has never been more crucial. Why Mental Health Matters in the Workplace Poor mental health costs UK employers between £45-54 billion annually through absenteeism, presenteeism, and staff turnover. Beyond these financial implications, organisations have both a moral and legal responsibility to provide a psychologically safe working environment. When employees feel mentally well, productivity increases, creativity flourishes, and overall organisational resilience improves. Developing a Comprehensive Wellbeing Strategy A wellbeing strategy shouldn't be a reactive afterthought but rather a proactive, integrated part of your organisational culture. An effective strategy connects mental health support to your company values and business objectives while providing a framework for consistent action. Your wellbeing strategy should outline your organisation's vision for employee mental health, identify key priorities based on employee needs, and establish clear metrics to measure success. Rather than focusing solely on addressing problems after they arise, a robust strategy emphasises prevention and early intervention. The most successful wellbeing strategies are developed with input from employees across all levels of the organisation. By involving staff in identifying challenges and potential solutions, you create a strategy that resonates with their actual experiences and demonstrates genuine commitment to their wellbeing. Implementing a Formal Wellbeing Polic y While a wellbeing strategy provides direction, a wellbeing policy translates this into concrete guidelines and procedures. Your policy should clearly articulate what support is available, how employees can access it, and what responsibilities managers have in supporting team members' mental health. An effective wellbeing policy might include: Clear procedures for identifying and managing workplace stress Document specific processes for conducting stress risk assessments and implementing reasonable adjustments for employees experiencing mental health challenges. Guidelines for maintaining work-life balance Establish expectations around working hours, email response times, and meeting schedules that respect employees' need for downtime and recovery. Details of available support resources Outline all mental health resources available to employees, from Employee Assistance Programmes to mental health first aiders, with clear instructions on how to access them confidentially. Return-to-work processes Define supportive procedures for employees returning to work after mental health-related absences, including phased returns and ongoing accommodations. Accountability measures Specify how the organisation will monitor adherence to the policy and address instances where wellbeing principles aren't being upheld. Practical Steps Employers Can Take During Mental Health Awareness Week Mental Health Awareness Week provides an excellent catalyst for meaningful action. Here are some straightforward ways employers can support employee mental health during this week and beyond: Create psychologically safe spaces for conversation Host informal coffee mornings, lunchtime walks, or structured workshops where employees can discuss mental health without fear of judgement. Consider bringing in external facilitators if internal comfort levels around discussing mental health are still developing. Provide mental health education Arrange training sessions on recognising signs of common mental health conditions, managing stress, and building resilience. These can be delivered by mental health professionals or through quality online resources from organisations like Mind or the Mental Health Foundation. Review workloads and expectations Use this week as an opportunity to have honest conversations about workload pressures and realistic expectations. Encourage managers to check in with team members about their capacity and make adjustments where needed. Introduce wellbeing moments into meetings Begin team meetings with brief wellbeing check-ins or mindfulness exercises to normalise conversations about mental health. Even five minutes can make a significant difference to meeting culture. Upskill managers Provide managers with specific training on supporting team members' mental health, including how to have sensitive conversations, recognise warning signs, and make appropriate referrals to professional support. Communicate available resources Use various communication channels to remind employees of existing mental health resources, from counselling services to mental health apps that your organisation might subscribe to. Consider environmental factors Evaluate your physical or virtual working environment to ensure it supports good mental health. This might include providing quiet spaces, natural light, ergonomic equipment, or clear boundaries between work and personal time for remote workers. Building Sustainable Mental Health Support While awareness weeks provide valuable focus, supporting employee mental health requires consistent, year-round commitment. Consider implementing these longer-term approaches: Regular wellbeing pulse surveys Conduct brief, frequent surveys to monitor employee mental health and identify emerging concerns before they become serious problems. Mental health champions network Develop a network of trained employees who can act as points of contact for colleagues seeking initial mental health support or information. Flexible working arrangements Offer genuinely flexible working options that help employees balance work with personal responsibilities and self-care. Leadership role modelling Encourage leaders to share their own wellbeing practices and be transparent about setting boundaries, taking breaks, and prioritising mental health. Recognition of the whole person Acknowledge that employees have lives beyond work and that personal circumstances significantly impact workplace performance and wellbeing. Measuring Success Any investment in mental health initiatives should be accompanied by appropriate measurement. Consider tracking metrics such as: Absence rates related to mental health Utilisation of wellbeing resources Employee feedback through surveys and focus groups Retention rates Productivity indicators Return on investment for specific wellbeing initiatives Remember that some benefits of supporting mental health, such as increased trust and improved company reputation, may be harder to quantify but are nonetheless valuable.  Moving Forward Together This Mental Health Awareness Week, commit to making mental health support an integral part of your organisational culture rather than an occasional focus. By developing a comprehensive wellbeing strategy, implementing a clear policy, and taking consistent practical action, employers can create environments where employees feel valued, supported, and able to thrive. The most successful organisations recognise that supporting mental health isn't just the right thing to do—it's also good business. When employees feel mentally well, everyone benefits: individuals, teams, organisations, and ultimately society as a whole. What steps will your organisation be taking this Mental Health Awareness Week to support employee mental health?

In today's complex labour market, recruiters and hiring managers face unique challenges that require innovative solutions. From navigating hybrid work expectations to addressing skill gaps in an AI-driven economy, the recruitment landscape continues to evolve rapidly across the UK. This post tackles five of the most pressing recruitment challenges British companies are facing right now and provides practical solutions to help you overcome them. 1. How can we attract quality candidates in a competitive market? The Challenge: Despite economic fluctuations, competition for top talent remains fierce across many UK industries. Companies struggle to stand out to qualified candidates who have multiple options. The Solution: Start by refining your employer brand to showcase your company culture, values, and employee experiences authentically across all channels. Use employee testimonials and day-in-the-life content to give candidates a genuine look at what working for you is like. Next, optimise your compensation strategy by regularly benchmarking your salary ranges and benefits against industry standards and considering flexible benefits packages that candidates can customise to their needs. The application process itself must be streamlined, as top candidates won't tolerate cumbersome systems—audit yours to ensure it's efficient, mobile-friendly, and respects applicants' time. Finally, leverage your existing team by implementing a robust referral programme with meaningful incentives, as current employees often know qualified individuals who would be a good cultural fit. 2. How should we handle hybrid work expectations in our hiring process? The Challenge: Post-pandemic work arrangements continue to evolve in the UK, with candidates now having strong preferences about hybrid and remote working. Companies struggle to balance organisational needs with these expectations. The Solution: Transparency is crucial from the beginning of your recruitment process. Clearly communicate your work model in job descriptions and throughout the hiring process to avoid misalignment later on. If you can offer flexibility in work arrangements, make this a key selling point in your recruitment messaging. For roles requiring in-office presence, develop a compelling office value proposition that articulates why it benefits both the employee and the organisation, focusing on collaboration, mentorship, and cultural benefits. Regardless of your model, create equitable experiences by ensuring your hiring process and onboarding are designed to be equally effective for both remote and in-office candidates. 3. How can we address the skills shortage exacerbated by Brexit and technological advancement? The Challenge: The combination of reduced EU talent pools post-Brexit and rapid technological evolution has created significant skills gaps across the UK. Many organisations can't find candidates with all the skills they need, particularly in technical fields. The Solution: A shift to potential-based hiring is essential in today's market. Focus on candidates' ability to learn and adapt rather than just their current skill set, looking for transferable skills and a growth mindset that will serve your organisation long-term. Implement meaningful skills-based assessments using practical tests and projects to evaluate candidates' capabilities rather than relying only on CVs and interviews. Within your organisation, develop robust internal talent pipelines by creating upskilling and reskilling programmes for existing employees to fill emerging skill needs. Externally, partner strategically with educational institutions by developing relationships with universities, apprenticeship providers, and training programmes to create direct pipelines for emerging talent. 4. How can we balance diversity and inclusion goals with our recruitment needs? The Challenge: Despite progress on D&I initiatives, many UK organisations still struggle to build truly diverse teams, often citing limited diverse candidate pools or concerns about "lowering the bar." The Solution: Begin by examining and revising job requirements to evaluate whether stated qualifications are truly necessary or if they might unintentionally exclude qualified diverse candidates. Implement structured interviews and blind CV reviews to help mitigate unconscious bias in the selection process. Your sourcing strategy should expand beyond traditional channels—partner with professional organisations, attend diversity-focused career fairs, and utilise specialised job boards to reach a broader range of candidates. Setting meaningful metrics allows you to track diversity throughout your hiring funnel to identify where diverse candidates might be dropping out of your process. Throughout all communications, create inclusive job descriptions by using language that welcomes all qualified candidates and avoiding jargon or terms that may alienate certain groups. 5. How can we compete with larger employers on salary while facing cost pressures? The Challenge: With inflation and cost-of-living pressures in the UK, candidates are increasingly salary-focused, yet many SMEs cannot match the compensation packages offered by larger organisations. The Solution: Emphasise your total value proposition by highlighting aspects beyond salary such as work-life balance, career development, company culture, and meaningful work. Consider offering creative benefits that may be less costly but highly valued, such as enhanced holiday allowance, flexible working hours, or learning and development budgets. Transparency about growth opportunities is crucial—clearly articulate potential career progression paths and how you invest in employee development. Alternative compensation models can also help bridge the gap; look at profit-sharing schemes, performance bonuses, or equity options that align employee success with company success. Finally, develop and promote robust workplace wellbeing initiatives that demonstrate your commitment to employee health and happiness, an increasingly important factor for job seekers. Moving Forward The recruitment landscape will continue to evolve, but UK organisations that approach these challenges with flexibility, creativity, and a commitment to candidate experience will gain a significant competitive advantage in attracting and retaining top talent. Remember that recruitment is not just about filling positions—it's about building the foundation for your organisation's future success. By implementing these solutions, you'll be well-positioned to overcome today's most pressing hiring challenges and build a workforce ready for tomorrow's opportunities. What recruitment challenges is your organisation facing, and which of these solutions resonates most with your situation?

What local HR teams and hiring managers need to know about AI, CVs, and keeping things human. AI (Artificial Intelligence) is the latest buzzword in the recruitment world, but for many medium-sized businesses across Staffordshire and Cheshire, the big question is: Does it really help — or does it make things harder? We’ve been speaking with clients lately who are unsure whether to embrace it, avoid it, or ignore it altogether. So here’s a no-jargon, real-world look at how AI is showing up in recruitment and what it means for local employers like you. So, where is AI being used? It’s popping up in places you might not even realise: CVs filtered automatically before you even look at them Chatbots that reply to jobseekers Interview scheduling without the back-and-forth emails Video tools that claim to "read" facial expressions And now, job applications and CVs are even being written by AI tools like ChatGPT One of our manufacturing clients recently used a bit of AI software to screen a high number of CVs — and while it saved admin time, they still had to use their people skills to find the right cultural fit. The AI gave them speed; they still needed their team to make the decisions. What’s the issue with AI-written CVs? Here’s where things get a little tricky. More and more candidates are using AI to write their CVs, and they’re coming out very polished — maybe too polished. One of our financial services clients recently spotted a pattern: some applications looked amazing, but in interviews, the candidates’ communication didn’t match the CV. It raised doubts — and delayed the decision-making. It’s a reminder that what you see on paper isn’t always the full story. How to keep your recruitment human (with a little AI help) We’re not saying avoid AI altogether — it can be useful. But here’s what the most effective hiring teams are doing: 1. Go beyond the CV Use shortlisting tools or AI if you want to save time, but always follow up with things that AI can’t fake — like skills tests, mini writing tasks, or a quick phone call to hear how a candidate presents themselves. 2. Check for authenticity If writing is important for the role, ask for a quick task during the interview. One of our clients now gives a 15-minute writing challenge — it’s a simple way to spot genuine communication skills. 3. Don’t forget the human bits AI is great for admin. But when it comes to judging personality, emotional intelligence, or team fit? That’s where you and your team come in. These are things that local employers like you know best — and it’s what sets great hires apart. 4. Be honest with candidates If you’re using automation (even just for booking interviews), let applicants know. It builds trust and shows you’re running a fair process. 5. Keep an eye on fairness Sometimes, AI can make decisions based on patterns that aren’t fair or inclusive. If you use it, make sure you check your outcomes from time to time. A few of our clients now do quarterly reviews to spot any red flags in their shortlisting. AI can’t replace… Knowing when someone will fit in with your team Spotting the “gut feeling” red flags that come up during interviews Building a relationship that leads to a great job offer Understanding why someone’s taken a career break or changed industries Showing candidates that your business genuinely values people These are the reasons clients still come to us for help, especially when hiring at speed or needing to get it right the first time. A balanced approach is best Think of AI as a helpful assistant — not the decision-maker. Let it sort, schedule, and streamline. But keep your people (or recruitment partner!) in the driving seat for the parts that really matter. At Appointments Personnel, we’re supporting local businesses who want to modernise their hiring without losing the personal touch. We can help you explore what works and what to avoid — and make sure your process is fair, efficient, and still feels very human.  Want to talk about how AI might (or might not) fit into your recruitment? Get in touch – we’d love to share some local insights and stories from other businesses like yours.

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From April 6th 2025 there will be significant shift in employer National Insurance (NI) contributions, with the rate increasing by 1.2 percentage points to 15%, and a lowered earnings threshold now starting at £5,000 (down from £9,100). These adjustments could lead to higher payroll expenses for mid-sized and larger businesses, affecting hiring strategies and budgeting in 2025 and beyond. Key Details of the Change Rate Increase: The NI contribution rate for employers rises to 15%. Lower Earnings Threshold: Employers will now pay NI on earnings starting at £5,000, significantly reducing the exemption range. This change is intended to boost government revenue but will likely increase costs for businesses with lower-wage roles. Employment Allowance Adjustments: The Employment Allowance, which offers some relief on NI costs, increases to £10,500. This provides a cushion for many small businesses, particularly those employing fewer staff. How These Changes Impact Staffing and Recruitment Businesses may see these shifts reflected in higher staffing costs, particularly for mid-sized and larger firms with significant payrolls. These added expenses might influence decisions on wage increases, hiring plans, and even the type of roles businesses choose to fill. Employers should prepare for potential shifts in their budget allocations to maintain competitiveness while managing increased contributions. Preparing Your Business Planning ahead is essential. Key steps might include: Calculating projected costs to budget for the changes Evaluating workforce needs and considering the potential impact on hiring strategies Maximising allowances by confirming eligibility for the updated Employment Allowance We will be updating our blog in the coming days with a detailed breakdown and calculations, so visit us again soon!

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