The world is in turmoil again. The UK economy is ‘flat lining’, Europe is in disarray. The US dollar appears in free fall which has the Chinese fretting. Where will it all end? We probably all wish we knew the answer but for sure the business climate will remain difficult for some time to come.
In these circumstances one always looks for the ‘quick fix’, if there is one. Well in the UK there is. The government could start undoing the billions of pounds of unnecessary employment legislation which has hit the statute book over the past decade or more. For example the national minimum wage which was designed to provide increased income for low paid workers has done the reverse as it has become the market rate for low skilled workers and there are now more low paid workers than ever before. Further, rampant increases in both the range and value of welfare payments/benefits have created a ‘mass unemployment’ of people who see working at national minimum wage rates as a disadvantage. As a result the social cost of unemployment has soared and employers have become increasingly dependant on immigration in all its forms to find the staff to operate their businesses.
While all this is going on business is hit with a double whammy – more taxes which hit the bottom line and the potential to invest and grow and red tape in the form of complex employment laws, a tribunal system which has been hijacked by lawyers and unwarranted health safety rules which stifle everything from planning to production – even with the most safety conscious organisations.
So if government really wants to promote growth and employment it may seriously consider scrapping a lot of ‘red tape’ which in the end costs the economy. National Minimum Wage standstills, National Insurance reductions, simplification of: health and safety laws, the employment tribunal system, the introduction of more time served criteria for employment rights and financial support for organisations hiring unemployed workers coupled with penalties for those unemployed declining to accept work may just create an environment where work ethic and values of responsibility and mutual respect could return the UK to a country of economic and social prosperity.
Of course another quick fix is to work with a recruitment agency which may provide competent and productive staff and take away some of the bureaucratic burden. If you what to talk about the benefits of using a recruitment agency please give us a call.
Dr Hugh Billot
HR GO Recruitment offers solutions to all your staffing needs, temporary and permanent, please call 0845 130 7000