In light of the forthcoming National Living Wage increase, Benchmark MD Becca Morris sheds light on its potential impact on employers when it comes to hiring and retaining staff.
As all UK-based employers are undoubtedly aware, the new National Living Wage increases to £11.44 for workers over 21 from April 2024. The current minimum wage is set at £10.42 per hour for over-23s and £10.18 per hour for workers aged 21-22.
So, it’s a significant jump – in fact, it’s the largest-ever cash increase in the minimum wage to date. An average working week of 37.5 hours on the new wage will put candidates on just over £22,000 a year, and that’s a non-negotiable factor that businesses need to work around.

However, what employers might not have considered is how this will also squeeze the wage gap between entry-level staff and more experienced staff. It’s important, therefore, that business owners use this interim time to review and benchmark wages across the board ahead of the changes. In other words: it’s time to talk salaries.
As most of us will know simply by looking at our grocery and utility bills, the cost-of-living crisis is still biting hard. Naturally, the pandemic accelerated a growing focus on work-life balance when it came to job priorities for professionals, but salary remains the most important factor when attracting candidates to a business – and in the current climate, competitive pay and progressive wage structures will determine how long they stay. This doesn’t mean that everyone in the business instantly requires a pay rise, but it’s increasingly incumbent on employers to provide a sense of clarity concerning job specifications and potential routes to increased wages.
“Don’t let these incoming changes become a catalyst to missing out on ideal candidates and losing good staff.”
What also can’t be underestimated is the impact of a global pandemic when it comes to inspiring people to shop around for jobs. There was an element of craving security during the lockdowns, of course, but people have come out of the other side feeling braver and more motivated than ever to make the jump if they’re feeling undervalued. I’ve had more calls over the last few months from candidates at all levels exploring new jobs than I ever had pre-COVID. And if middle-earners are feeling underpaid in their respective roles now, they certainly will be when the new legislation kicks in.
So, don’t let these incoming changes become a catalyst to missing out on ideal candidates and losing good staff. The goalposts are shifting and, now more than ever, it’s integral that businesses do their research and keep up. If needed, recruiters like ourselves will always be more than happy to steer you in the right direction on where wages are currently benchmarked for various roles.
It’s ultimately all about getting the pitch right, both to potential and current employees. Do that and the motivation, loyalty and productivity will follow!