"The upcoming rise in employer National Insurance contributions (NICs) will place significant financial pressure on businesses, with many organisations re-evaluating their pay strategies to manage these rising costs.
"Brightmine data shows that nearly two-thirds of large organisations (65.9%) and 60% of medium-sized businesses are scaling back pay award budgets. Many employers are freezing pay, limiting raises in line with inflation, or delaying pay decisions until later in the year so they can better assess the full financial impact of the rise in NICs.
"As well as pay adjustments, around a quarter of organisations are implementing recruitment freezes or restructuring teams, while a smaller proportion (4.3%) are exploring salary sacrifice schemes as cost-mitigation exercises.
"With the deadline fast approaching, businesses must develop strategies to balance financial stability with workforce expectations. It is vital that business leaders are clear and transparent in their employee communications around business performance, affordability, and subsequent pay decisions. Failure to do so could have a negative impact on morale, retention and long-term competitiveness."
