5 Ways Frontline Technology Can Help Employers Offset the National Insurance Hike

The recent National Insurance Contributions (NICs) increase has created a significant £28 billion tax burden for UK businesses this year[1]. For enterprises with large frontline workforces—including retail, hospitality and manufacturing—this presents a challenge, as labour typically represents the largest operating expense.

Forward-thinking companies are turning to technology solutions that address two critical areas: maximising frontline productivity and improving employee retention.

Here are five ways frontline technology can help your business offset the NI hike:

1. Enable Managers to Be More Efficient

With the NI increase driving employment costs up, businesses are now looking at how to save by making their managers more productive. Solutions like WorkJam can:

Enable managers to oversee larger teams and more locations effectively through automation

Automate routine tasks like inventory checks, compliance reporting, and shift handovers

Streamline communication between store floors, production lines, and management

Provide real-time performance data to quickly address service or production inefficiencies

Standardise processes across multiple locations to ensure consistent customer experiences

For businesses with hundreds or thousands of frontline workers, even a 5% improvement in operational efficiency can significantly offset the increased labour costs from the NI hike.

2. Enhance Frontline Employee Retention Through Digital Engagement

Industries with deskless workers face high turnover rates anyway, and with increased NICs, retaining valuable employees is more financially critical than ever. To build engagement and loyalty, businesses must offer a modern digital workplace that:

Creates transparent communication channels that reach workers without corporate email addresses

Delivers digital recognition programs that boost morale on the front lines

Provides visibility of internal career opportunities to show advancement paths

Gathers real-time feedback from the shop floor to address concerns before they lead to turnover

3. Implement Flexible Scheduling

As businesses reassess their recruitment plans due to the NI increase, optimising your existing frontline workforce is essential. Extending your workforce management with a platform like WorkJam gives you:

Self-service shift management to reduce absenteeism and maintain service levels

Cross-training capabilities that improve workforce utilization across departments

Flexible shift marketplaces that enable team members to maintain their ideal work-life balance

These solutions enable enterprises to maximise the productivity of their frontline teams, directly counteracting the impact of increased labour costs in shift-based environments.

4. Use Data for Strategic Decision-Making

With businesses concerned about rapid policy changes, having access to good data from your largest workforce segment is invaluable. Integrating an experience platform like Qualtrics with a digital workplace solution like WorkJam can significantly enhance data-driven decision-making and close the feedback-to-action loop at the frontline. This powerful combination:

Automate workflows off of real-time data feedback and signals

Identifies and assigns next best actions for employees to improve customer experience

Establishes proactive responses to early warning signs for retention and consumer issues

By integrating these tools, businesses can make informed decisions, respond to changes, and improve both employee and customer experiences.

5. Reduce Compliance Risks and Administrative Costs

The rising NI contributions are just one of many regulatory challenges businesses face. Digital workplace platforms help businesses stay compliant while reducing administrative burdens by:

Simplifying compliance with labour laws, including working time directives and overtime regulations

Providing digital records for audits, reducing paperwork and manual errors

Ensuring workers acknowledge and adhere to safety policies and procedural updates

By integrating these tools, businesses can make informed decisions, respond to changes, and improve both employee and customer experiences.

Turning Challenge into Advantage

While the National Insurance hike presents significant challenges for businesses, it also creates an opportunity. Enterprises that leverage technology specifically designed for frontline workers will not only offset some of the immediate financial impact but may emerge stronger than competitors who resort to basic cost-cutting measures like reduced hours or headcount.

By implementing digital workplace solutions that enhance frontline efficiency, improve retention, optimise shift scheduling, leverage operational data, and streamline compliance, businesses can transform this financial challenge into a catalyst for digital transformation across their most valuable asset: their frontline workforce.

Citations:

https://www.novuna.co.uk/news-and-insights/group-updates/uk-businesses-face-28bn-tax-burden-due-to-national-insurance-hike/

🎙️ Discover how strategy meets the frontline - Listen to The Frontline Factor Podcast now!

Sign In