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How can HR strategically address the impact of rising NICs?

by | Apr 10, 2025

People Planning and Strategy | Workplace and wellbeing
Home 5 People strategy 5 How can HR strategically address the impact of rising NICs?

How can HR strategically address the impact of rising NICs?

What do you do when your business is hit with rising costs, regulatory changes, and mounting pressure to deliver more with less? In this episode of HR on the Offensive, Chris is joined by Simon Fowler, CEO at Empowering People Group, to discuss how HR leaders can strategically navigate cost pressures—including minimum wage increases and recent changes to National Insurance contributions (NICs).

What has been the impact of these financial changes?

The recent changes to NICs have not been just small adjustments. One retailer is facing an extra £40 million in wage costs, and others are dealing with hundreds of millions in unplanned overheads. It’s clear that these aren’t minor fluctuations—they’re structural changes that demand smarter, more agile responses. Simply cutting headcount won’t solve the problem; instead, organisations need to rethink how work gets done and who is best equipped to do it – as explored in our Becoming-skills powered campaign.

Supporting the “accidental manager”

Often line managers are promoted for their technical skill, but many find themselves unprepared for the people-management responsibilities that follow. These “accidental managers” often face challenges, leading to more employee relations issues, grievances, and legal risks. This added strain impacts already busy HR teams. Empowering managers with the tools, training, and support they need, right when they need it is the key to solving these issues.

What role can technology play?

Technology offers valuable support. Not only can it help deliver consistent and compliant processes, but when used wisely, it builds manager confidence and reduces reliance on HR for every decision. AI also makes an appearance in the discussion—not as a replacement for human judgment, but as a tool to streamline routine tasks. The focus is on practical innovation: solutions that free up time and improve both employee and manager experience. Technology works best when paired with efforts to upskill managers and simplify processes, not as a standalone fix.

Listen now to learn how you can empower your people managers in this new financial landscape.

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