With an impending General Election next month in the UK, the CEO of an award-winning human resources consultancy in Kettering has shared his thoughts on how businesses can prepare for the vote.
HR Solutions’ Greg Guilford has urged SMEs to consider all possible outcomes to the polls on July 4 and begin planning to ensure they’re in a good position once a party has been chosen.
He said:
“It’s important to remain open minded and consider what each party has to offer. Ultimately, we don’t know who will win so SMEs should prepare in terms of financial planning and scenario planning.
“For business owners it is vital to keep yourself informed and be engaged in all political conversations – a lot can change in the coming weeks. In keeping up to date with all that is happening in the political arena, you can consider what you, your business and your employees might need going forward.”
Greg also recommended considering how the outcome of the General Election may impact existing business and people strategies and whether priorities may need adjusting.
What does it mean for businesses if the Conservative Party hold onto the reins?
The Conservatives are looking to cut 2p off National Insurance, eventually working towards abolishing National Insurance completely.
They will also abolish the main rate of self-employed National Insurance and maintain the National Living Wage at two thirds of median earnings, which will be around £13 an hour.
Conservatives plan to increase the number of apprenticeships, creating 100,000 more in England and introduce the Advanced British Standard, enhancing technical learning for young people aged 16-18 by building on A-Levels and T-Levels.
They plan to overhaul the fit note system and extend 30 hours free childcare to include children from nine months old. Extra funding would be generated by increasing work visa fees.
What does it mean for businesses if Labour come into power?
Labour is intending to ban zero hours contracts and ensure all contracts of employment include a baseline level of security and predictability. They will do this by ensuring a number of regular hours of work are agreed on based on a 12-week reference period.
This would have implications for industries that are already struggling post pandemic, such as hospitality, tourism, health and social care, all of which rely heavily on casual workers.
Labour want to revise the national minimum wage to be a genuine living wage, reflecting the current cost of living. They want to remove age bandings, end the practice of fire and rehire (where workers are dismissed and re-engaged but on less favourable terms) and make parental leave, statutory sick pay and protection from unfair dismissal a day one right.
They will also update Trade Union legislation to facilitate good faith negotiations, boost worker protection, minimise disruption and ensure better terms and conditions.
What if the Liberal Democrats take power?
The Liberal Democrat manifesto has a keen focus on the care sector, with a plan to make caring a protected characteristic under the Equality Act and introduce a new minimum wage for the care industry.
They are proposing a 20% higher minimum wage for zero hours contract workers and a review of tax and national insurance for the fair treatment of all workers.
Liberal Democrats want to support small businesses with statutory sick pay costs and extend the use of name blind recruitment so that all applicants are considered equally.
If you have questions or concerns about the upcoming election, seek expert advice or view the extensive information on the HR Solutions website.
