KD Recruitment, one of Yorkshire’s leading recruitment companies, has spoken out about the ‘cost of living’ announcements made today (8th September) by Prime Minster Liz Truss.

Plans announced today include the introduction of a six-month cap on business energy bills which will be reviewed after six months.

It is hoped the scheme will, along with interventions announced for domestic energy bills, help curb inflation by around 5 per cent.

KD Recruitment’s founder, Kelly Dunn said: “Anyone who runs a business in the Yorkshire and Humber region is feeling the ongoing impact of rising costs coupled with the challenge of recruiting and retaining staff in a world that is still reeling from the effects of the Pandemic. Here in the UK, we are also adjusting to Post-Brexit Britain which has brought its own issues.

“Businesses have seen costs increase exponentially in many areas, from their raw materials and energy costs to their insurance premiums, and this has been across all sectors within the region. It’s a perfect storm and is a very worrying time for employers as well as their staff.”

While the eagerly awaited plan will help to address some business concerns, other obstacles are still prominent including the new electronic ID verification system and IR35.

Kelly revealed: “Two thirds of employees are saying that a salary increase is their main priority at the moment, while employers are stills struggling to recruit and retain their staff. It is very easy to fall into the trap of retaining employees who are not as engaged, which can reduce their productivity by around 20%.

“Those employees who feel valued can add over 20% to productivity levels to your business. You can focus on improving employee engagement by communicating regularly and showing that your staff feel valued. A good way to start the conversation is to ask how they are feeling at the moment with the current cost of living crisis going on? Is there something relatively low cost that could be introduced, such as a free fruit bowl on employee’s desks or breakfast rolls to support everyone, but especially those employees who can’t afford to heat their homes and feed themselves at the moment and are turning to food banks.

“While it is anticipated that one in five of employees will be job hunting by this time next year, some smaller steps now to show you care, might help retain your staff when you need it most.

“Other government measures that Liz Truss has confirmed already is the reversal of the National Insurance hike for businesses, the introduction of a new law regarding minimum staffing levels during strike action and another look at IR35 which affects contractors. These will affect all employers as they will mean a change in policies to grapple with over the coming weeks and months.

“However, today’s announcement is broadly welcomed and while not a cure-all, it will alleviate some of worries for our workforce as a whole.”

If you would like to talk to Kelly or anyone else in the KD Recruitment team, please call 01723 313505 or click here