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autumn budget

Post-Autumn Budget 2024: Strategic BPO to Reduce Rising Employment Costs

Created by Harvinder Rattan.

With the recent Autumn Budget, UK firms are preparing for a variety of financial adjustments that will have an impact on employment costs, such as rising National Insurance Contributions (NIC) and higher minimum salaries.

These measures, while intended to help the workforce, present substantial hurdles for businesses with limited budgets. According to the Institute for Fiscal Studies (IFS), rising NIC rates and salary hikes may have an impact on corporate capacity for pay increases and job growth, putting additional pressure on maintaining both competitiveness and financial health.

So, how can businesses prepare for and mitigate the impact of these higher costs?

ERA’s Business Process Outsourcing (BPO) solutions provide a strategic solution for businesses looking to improve operations, control costs, and ensure continuity. Here’s why BPO is a good idea in today’s economic climate:

Why BPO helps to offset rising employment costs

  1. Cut Employment Costs Efficiently: With rising wages and NIC rates, outsourcing back-office activities like finance, procurement, and human resources to more cost-effective regions can make a big impact. BPO enables firms to shift these responsibilities without paying the additional costs associated with local labour, hence increasing budget sustainability.
  2. ERA’s BPO services are scalable. Whether you’re a mid-sized corporation with a growing workforce or a larger enterprise with substantial accounting, procurement, or customer service operations, we can help. Begin with one outsourced position and expand as needed, guaranteeing that you may develop your workforce at a manageable rate.
  3. Free Up In-House Resources: By outsourcing mundane finance, accounting, or human resources tasks, in-house employees may focus on core business responsibilities, increasing productivity where it is most required. This flexibility enables organisations to remain nimble and responsive in an ever-changing economic situation.

Real-World Impact.

Consider a UK-based professional services organisation that recently collaborated with ERA to improve its procurement and financial procedures. They began with a single outsourced financial job and then expanded to encompass procurement, customer service, and compliance support as they recognised the cost savings and efficiency improvements that BPO could provide. What was the result? Within the first six months, they saw a 20% reduction in operational expenditures, as well as a smoother, more consistent process as their operations grew.

This type of agility is critical as minimum wage and NIC increases take effect. By strategically shifting these positions, organisations can not only save hiring expenses but also establish a robust, high-quality workforce in talent-rich regions.

Prepare now for a stable future.

As we navigate the upcoming changes, ERA is ready to support businesses in developing efficient, cost-effective arrangements. BPO is more than just cost-cutting; it is also about optimising and future-proofing your organisation so that it can prosper regardless of economic situations.

Let’s explore how ERA’s BPO solutions can assist your business to meet today’s challenges and tomorrow’s opportunities for growth. E-mail [email protected] to discuss a tailored solution.

 

Contact Harvinder Rattan

 

harvinder-rattan

Harvinder Rattan

Phone: 07786 117 760
E-mail: [email protected]