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Case-study

Managing National Minimum Wage Increases using People Inc.

Introduction

The National Minimum Wage (NMW) and National Living Wage (NLW) rates are changed each April and effect all workers of school leaving age and above (including Apprentices).

The new hourly rates for 2019 saw increases as follows:

• 25 and Over = £8.21
• 21 to 24 = £7.70
• 18 to 20 = £6.15
• Under 18 = £4.35
• Apprentice = £3.90

Whilst Payroll will ultimately deal with the actual increase to each employees pay, it it likely the HR Manager who is tasked with analysing the costs of these increases.

 

How People Inc. can help.

Our client, a small family Zoo in the South East of England needed to be able to identify which of their 220 employees the increases effected so they could quickly apply the correct increase to each group of employees.

Using the tools within People Inc. we were able to do the following:

  • Generate a report to show effected employees and what the total increase would be
  • Create filters to identify each group of employees who were eligible for the increase based on their age and current hourly rate
  • Apply the pay changes using the Pay Review Workflow Wizard
  • Send Pay Rise Letters to the effected employees

Analysing the cost of the increase

The HR Manager was able to analyse the increases by each employee and the cost to the business by each age category effected by running new reports that we had developed for them.

The first report analysed the increase by each effected employee in the different age brackets.

Screen shot of National Minimum Detailed Report example National Minimum Detailed Report example

The next report showed a summary of the total cost of the increases to the business by each age bracket.

Screenshot of Cost of National Minimum Wage Increase Report Cost of National Minimum Wage Increase Report[/caption]

 

The next task was to select the effected employees in each age bracket so the pay increase could be applied by creating a custom filter.

Screenshot of National Minimum Wage Filter within People Inc. National Minimum Wage Filter within People Inc.

 

We then ran the Pay Rise workflow wizard to apply the update to each group of employees.

Screen shot of Pay Change Wizard

People  Inc. Pay Increase Wizard 

The Salary History screen within People Inc. was updated to reflect the change for each of the employees

Screen shot showing employees updated Salary History Updated Salary History screen

 

Once the pay increase has been applied we can send letters to the effected employees notifying them of the increase.

Screenshot showing example NMW Pay Rise Letter National Minimum Wage Pay rise Letter example

 

Summary

All of this was achieved using the functionality that comes with People Inc such as the built in Workflow Wizards, Mail Merge and Report Writer tools and is just one example of how People Inc. can reduce admin time and costs.

 

Contact us to find out how People Inc. can help your organisation manage the National Minimum Wage increase by calling 01242 663974 or email enquiries@agathonhr.co.uk