From April 2025, the National Minimum Wage (NMW) and National Living Wage (NLW) are going up again, which is great news for workers but a bit more complicated for businesses. With higher wages comes a higher payroll, meaning companies will need to rethink their hiring strategies and budgets.
What’s Changing?
The biggest update is that the National Living Wage (for 21+) will rise from £11.44 to £12.21 per hour. The NMW for younger workers and apprentices is also increasing, which means higher pay across the board.
What Does This Mean for Recruitment?
There are a few ways this could shake things up in the job market:
- Higher Wages Means Higher Costs – Businesses will need to budget for these increases, which could mean fewer new hires or even price increases for products/services.
- More Competition for Talent – If every employer is offering higher wages, companies will need to step up in other ways—better benefits, career growth, and workplace culture will all be key.
- More Demand for Temp & Contract Work – Some businesses might lean towards temp or flexible contracts to help balance costs while still getting the staff they need.
- Small Businesses May Struggle – Larger companies may be able to absorb the costs, but for smaller businesses, it could be a real challenge.
How Can Employers Prepare?
- Plan Ahead – Businesses should start thinking now about how this increase will affect their costs and recruitment plans.
- Focus on Retention – With wages rising, keeping your best employees happy is just as important as hiring new ones. Training, development, and a great work environment will help.
- Be Open to Flexible Staffing – Temp workers, contract staff, and part-time roles could be a good way to keep operations running smoothly while managing costs.
This wage increase is a huge win for workers, but businesses need to be smart about how they adjust. If you’re wondering how to manage hiring in light of these changes, we can help!
At GPW Recruitment, we’re all about finding the right talent for your business, whether that’s permanent, temp, or contract workers.Contact us today!