From April 2026 the hourly rate for over-21s will rise by 50p to £12.71, with workers aged 18-20 seeing an 85p rise to £10.85, and under-18s and apprentices getting 45p more – going up to £8.00 an hour.

While these changes are undoubtedly positive for employees, leading to a better work environment – they can put a strain on small businesses with tight profit margins, significantly increasing their expenses.

In this article, we’ll explain the key differences between the National Minimum Wage and the National Living Wage and also look at some strategies to help you cope with employment costs in your business.

What is the National Minimum Wage?

The National Minimum Wage is the legal minimum rate of pay UK employers must pay most workers. It applies from the compulsory school leaving age and is set at different levels depending on age and employment status, including apprentices.

Employers are legally required to ensure eligible staff are paid at least the applicable minimum wage rate for their category of work.

The specific rate a worker is entitled to depends on their age group and whether they are an apprentice or not.

What is the National Living Wage?

The National Living Wage is the highest rate within the UK minimum wage system. Despite its name, it’s not directly linked to the actual cost of living. Instead, it’s set as a proportion of median earnings across the UK workforce.

The National Living Wage currently applies to workers aged 21 and over, but it doesn’t apply to those in the first year of an apprenticeship.

Minimum wage vs National Living Wage

In short, you have to pay workers at least the National Minimum Wage or the National Living Wage.

How do you know which one, though?

Again, it depends on the age of the employee and whether they are an apprentice (as different age bands apply). This article explains the differences and what rate applies in more detail.

There’s also the Living Wage (or Real Living Wage) to be aware of. Not to be confused with the National Living Wage, this is voluntary and based on the actual cost of living at the time, reflecting what people need to cover the essentials.

Around 16,000+ UK employers are currently accredited as Real Living Wage employers, benefitting over 490,000 employees. It also benefits businesses too – with 94% of accredited employers stating this.

How are small businesses affected?

A minimum wage rise often hits small businesses first through higher labour costs. Even a small hourly increase quickly adds up, pushing up monthly overheads.

For example, a café with six staff working 30 hours a week would pay about £90 more weekly after a 50p per hour rise – that’s nearly £4,700 a year before extra costs like National Insurance and pensions going through PAYE. For businesses with tight margins, that can make the difference between making a profit or a loss.

Labour-heavy sectors like hospitality, retail, and care feel it most. Businesses may cut overtime, rethink staffing during quiet periods, or raise prices. Over time, the pressure can also affect hiring plans, expansion, and overall growth.

What can small businesses do to adapt?

Like any external factor affecting your small business, identifying issues and adapting to them early on can create more breathing room.

Restructuring is perhaps the most obvious approach, and this involves things like consolidating roles and streamlining processes in an attempt to cut back on spending. It’s not always the most appropriate course of action though, especially if the type of work you’re involved in demands a minimum number of staff on duty.

Alternatively, you could consider outsourcing, which is where you delegate certain tasks to professionals outside the business (e.g. freelancers or an agency). This approach could even be paired with the introduction of new automations to help offset the impact of increased labour costs.

Are there other ways to save money?

Thankfully, there are!

Some employers can use the Employment Allowance to reduce their National Insurance bill by £10,500 each year.

In order to qualify, you need to have at least one employee earning more than the £5,000 Secondary Threshold for National Insurance (or at least 2 directors if you don’t have any employees).

What’s more, you don’t need to be paying more than £10,500 to qualify, either.

If you’re unsure about any of this, an accountant can walk you through the process and also ensure you’re operating in the most tax-efficient way possible, and claiming everything you’re entitled to.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Minimum Wage Rises: What Can My Businesses Do to Stay Afloat? appeared first on The Cheap Accountants.

In this article we’ll go over what an employer’s payroll responsibilities are, and some of the most common pitfalls to watch out for.

What is payroll?

In the simplest terms, your payroll is a record of all the people in your business and how they’re compensated for their work. The process of “running” payroll refers to the method by which pay is worked out, documented, and reported.

What are some common mistakes employers might make with payroll?

While running payroll may seem simple enough, it’s easy to get things wrong. There are so many things to keep track of, and you might not even be aware of everything you need to do!

Common issues can include not claiming the Employment Allowance, overlooking non-cash benefits which should be taxed (known as benefits in kind), and pension schemes. We’ll go into more detail below.

Not claiming your Employment Allowance

This is a big one. The Employment Allowance is a type of relief available to some employers which helps reduce the cost of their National Insurance contributions by up to £10,500 each year.

Once you use up the allowance, you’ll start making contributions as an employer again. You don’t even need to be paying more than £10,500 to qualify, either; you can still benefit if your bill for employer’s NI is less than this.

It’s important to note that this only applies to your contributions, not your employees’.

Not paying tax on a benefit in kind

Some employers will provide non-cash perks as part of the ‘package’ they give to employees. Company cars are the most common example of this.

The employee or director who receives the benefit will often need to pay income tax on it, just like they would if they received the equivalent value in the form of a salary instead. They might also need to pay NI on the benefit if it’s cash, or if it’s something they can sell or turn into cash, rather than keep.

Employers are also required to make Employer’s National Insurance Contributions on the value of any benefits in kind they provide.

All this means the benefit must be reported by the employer to HMRC so that it can be included in the calculations for tax and NI. Make sure you report them through payroll, and on time to avoid penalties!

No workplace pension scheme

Another responsibility you have as an employer is to set up a workplace pension scheme for your staff, automatically enrolling anyone who’s eligible. Now this isn’t optional, it’s a legal requirement if:

• You have employees aged between 22 and State Pension age
• They earn more than £10,000 per year
• Your business is in the UK, and your employees each have a contract of employment
• Your employees’ day-to-day duties are in the UK

The way it works is you as the employer deduct a pension contribution from an employee’s wages and then pay the amount into the scheme on their behalf, along with your own contribution. The minimum contribution is 8% of the employee’s pensionable earnings (and at least 3% must be from you as the employer).

Note: these contributions are in addition to National Insurance contributions, rather than instead of.

It’s also part of your obligations as an employer that you give your employees the option to opt out of the workplace pension scheme if they want to, so don’t overlook this!

You’ll need to make sure you have good systems in place to check who should be auto-enrolled, removing anyone who opts out, and setting reminders to repeat the process using the mandatory timeframes. The Pensions Regulator has a checklist of everything you need to do and when.

Hiring someone as a freelancer vs. as an employee

If you’re a business owner and haven’t come across IR35 before, it’s time to get clued up.

IR35 was introduced to minimise the risk of tax avoidance caused by someone working through their own limited company, when they would otherwise be considered employed based on the type or amount of work they’re doing.

In other words, they would simply work for their client as a regular employee if the intermediary didn’t exist.

Failing to comply with the rules can result in financial penalties, so our guide goes into more detail about who is responsible for checking IR35 status, and what to do if you employ someone inside the IR35 rules.

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Common Payroll Mistakes and How to Avoid Them appeared first on The Cheap Accountants.

For some employers, the huge list of things you might want to claim could include gifts for employees. Wanting to treat your staff from time to time is a lovely quality to have as an employer, but a lot of business owners aren’t sure where this leaves them in terms of claiming the expense against tax.

We’ll explain the rules for claiming the cost of staff gifting.

Do employee gifts count as an allowable expense?

In some cases, yes, presents you give to your employees are an allowable expense and you can claim tax relief on the value before tax. The rules are quite complicated though, with the outcome depending on what the gift actually is, its value, and who you give it to.

HMRC publish a list of expenses and gifts, and what businesses must do for each.

Gifts classes as ‘trivial benefits’ are usually an allowable expense.

Does it count as a trivial benefit?

A gift or small gesture to an employee can be classed as a ‘trivial benefit’. Something qualifies as a trivial benefit when:

• It costs the business less than £50 (including VAT)
• It isn’t a direct reward for employee performance
• It isn’t included within the terms of their employment contract – i.e., not something they’re obliged to receive. This includes any salary sacrifice setups.
• It isn’t cash or a cash voucher (gift cards qualify as long as they aren’t exchangeable for cash)

Where a gift meets all of these criteria, you don’t have to let HMRC know about it, or pay any tax or National Insurance on it.

If your business is a close company (a limited company controlled by five or fewer individuals), then an overall spend on trivial benefits in any tax year is capped at £300 per employee.

What happens if you spend more than the threshold for a trivial benefit on an employee gift?

You can still gift your employee a voucher that’s worth more than £50, but it will become taxable to both you and the employee under the benefits in kind tax rules.

The rule was introduced to make sure employers aren’t tempted to swap an employee’s pay for something of the same value – because this could help them avoid the tax and National Insurance which would otherwise need to be paid on the salary. To minimise the risk of this happening, if you buy a gift that exceeds the trivial benefit threshold of £50:

• You – as the employer – will be required to pay National Insurance on it
• Your recipient – the employee – will also be required to pay Income Tax on the value of the gift

You’ll need to report the benefit using your payroll software each time you run payroll and PAYE.

Does a cash bonus count?

Cash rewarded to staff in the format of a bonus will be counted as additional earnings on top of their standard salary. That means that PAYE tax and National Insurance will need to be paid through payroll.

Ways to show staff you care without spending money

If you’re working with a shoestring budget, or you prefer to dodge the hassle of working out if a gift is going to be an allowable expense or not, consider a non-monetary gesture instead.

You don’t have to splash the cash to show employees you appreciate them and that you’re grateful for their hard work. Here are just a few great ways to treat your staff without having to spend (much) money:

• An extra day of paid leave
• Flexible working hours
• An early dart on Fridays during the summer months
• An office party in their honour
• A parking space reserved just for them
• A long lunch
• Organise a staff games day on site
• Additional training and development
• Sing their praises (recognition goes a long way)

 
Hope this article answers all of your queries on the topic of staff gifts and allowable expenses. Got some more tax-based questions on your mind? Let us know!

The post Are Staff Gifts an Allowable Expense? appeared first on The Cheap Accountants.

What is PAYE?

PAYE stands for Pay as you Earn, and is the system used by employers to deduct income tax and National Insurance (NI) directly from employees’ and directors’ wages before paying it on to HMRC.

Some people will refer to PAYE taxes, but it’s actually the mechanism for colelcting tax, rather than a tax in its own right to HMRC. The deductions made through PAYE can include things like income tax, National Insurance (NI), Student Loans repayments, and pension contributions.

Do I need to register for PAYE?

Employers should register for PAYE if any of the following apply:

• An employee earns the Secondary Threshold for National Insurance or more. The current threshold for the 2026/27 tax year is £5,000 per year (or £96 per week).
• You provide employees with benefits or taxable expenses (known as benefits in kind)
• An employee has another job or receives a pension
• You need to pay NI

The same rules will apply to absolutely any employer, even if you’re a sole trader with staff or a larger company.

The difference between payroll and PAYE

Payroll is the process of paying employees and workers for the work they have done. It involves recording data about employees so you can calculate their pay correctly, as well as working out what needs to be paid to HMRC and other bodies for things like income tax, NI contributions, and pensions. We go over some common payroll mistakes to avoid in a separate article.

PAYE is the mechanism an employer uses to report this information to HMRC, and to pass on any deductions.

Registering as an employer for PAYE

If you’re getting ready to take on your first employee, you’ll need to register as an employer before before your first payday.

You can register for PAYE online, and can either do it yourself or ask an accountant to manage PAYE registration for you. You’ll need to confirm the number of employees (including yourself), the frequency of PAYE payments to be made, and the date of the first PAYE payment.

Set up payroll

A payroll system uses the employee’s details to calculate how much PAYE will be deducted from their payslip each month. This is where hiring an accountant comes in useful. Payroll calculations can be time consuming, and confusing!

Payslips

You’ll need to provide every employee with a payslip each time you pay them, confirming what their wages are, and how much you’ve deducted.

Pay PAYE

After you have paid employees it will be necessary to pay PAYE to HMRC. This is the amount you deduct from your employees’ wages. Failure to do so will incur hefty fines from HMRC, and all sorts of uncomfortable chats with angry employees. This is an easy transaction that can be completed online.

Make sure you report everything to HMRC on or before each payday, and send any payments to them by the 22nd of the following tax month in which they happened (a tax month is 6th to the 5th each month).

 
Check out our accounting support hub for more help and resources, or to ask a tax question.

The post A PAYE Guide for Small Businesses appeared first on The Cheap Accountants.

What are internships?

An internship is basically a work experience placement at a more advanced level, and the intern is likely to have some sort of knowledge of the industry already.

What can an intern do?

The tasks you hand out to an intern largely depends on what you’re willing to have them do, but it’s important to keep any legal or professional requirements in mind. For example, you probably can’t have an intern go out and start installing boilers by themselves if they’re not Gas Safe!

They might actively undertake work on your behalf, or they might shadow another employee to see how things are done.

Why internships are useful

Offering internships is good for both intern and employer. The intern is gaining valuable real-world experience in a particular field, picking up knowledge and skills and having something to talk about on their CV. For employers, it’s a good way of helping shape the future of your industry.

Who can offer an internship?

Technically there are no restrictions on who can offer an internship, though like any business decision it’s one to consider properly. Large employers are twice as likely to offer them as a smaller business.

What to know about offering an internship

Though anyone may offer an internship, not everyone should. The best internships are to help the intern better understand and experience that industry. It’s not necessarily to be used as a free way of getting the filing done by people who happen to be available over the summer. Which brings us to our next point; paying your interns.

Do I need to pay an intern?

The law says that if they are undertaking the work placement under the following conditions, then you do not need to pay your interns:

• If they are doing an internship to satisfy a requirement of their course
• If you are a charity and they are volunteering
• They are shadowing an employee and not actively working

If you’re offering an internship it needs to be made clear what the pay terms of the placement are. A voluntary internship is allowed, but if they will be carrying out essential and valuable work for you, then it might be that your business needs to think about employing someone.

How much are interns paid?

If this will be a paid internship, then it’s important that you meet the minimum wage requirements for their age. Beyond that, the rate of pay should be worked out just like you would for any other employee, on the basis of skills, experience, and industry standards, etc.

How long does an internship need to be?

Again, this depends completely on you. Internships should only be offered based on your ability to support the intern, so make sure you have the resources available to do this properly – they’re not the same as an employee! They can be anywhere from one day to a year – although the longer it is, the more likely it is that you’ll need to make sure you pay them.

Are there any rules I need to know about hiring an intern?

It’s generally considered sensible to approach taking on an intern as if you were taking on an employee. There are considerations around pay (if it’s a paid internship), but you’ll also need to think about things like insurance, ensuring you don’t discriminate in any way, and making sure all of the proper health and safety regulations are followed!

 
Need more help with your business? Our information centre includes guides and resources, including more information about hiring a cheap accountant for your business.

The post Summer Internships and Your Small Business appeared first on The Cheap Accountants.

Is a sole trader even allowed to have employees? And if so, do they have to be full-time? We’ll use this article to answer all your questions.

What is a sole trader?

In a nutshell, sole traders are self-employed people who own and run their business without any legal distinction between them and it.

Again, as a sole trader, you are the business, and this has an impact on your responsibilities and the way you pay tax.

The most important thing to understand is that without any kind of legal separation between you and your business, you are personally liable for any debts or other issues that may arise.

Can I employ staff if I’m a sole trader?

Yes! It’s perfectly acceptable to employ people as a sole trader if you could use the extra help. While it’s true that sole traders are solely responsible for their business, there’s no rule saying they have to work alone. The term sole trader just means you’re trading as yourself, under your own name.

Now, when it comes to the length of contract, you can choose to employ people on a permanent, part-time, or freelance basis – but this is where things get a little complicated, which we’ll explain next.

Can a sole trader hire another self-employed person?

Yes. Well, kind of. You can only hire another self-employed person if it’s on an ad hoc (or infrequent) basis, meaning it can’t become a regular thing. They also have to be able to invoice you for their time in the same way that any business would (a potential allowable expense).

The reason you can’t allow this to become a regular thing is because of IR35, an initiative introduced to try and tackle the problem of tax avoidance. Essentially, it helps identify a person’s employment status so as to ensure they’re paying the correct amount of tax and contributions.

A disguised employee is one who has been hired through their own limited company when in reality, the working arrangement is more like permanent employment. This would theoretically benefit the employer, who wouldn’t have to pay National Insurance or other contributions because the ‘self-employed’ person would be off-payroll.

Just make sure that if you do enlist the services of another self-employed person, your relationship with them doesn’t start to resemble that of an employer and an employee.

How do I claim the cost of employing someone if I’m a sole trader?

The cost of employing someone, such as their salary, and employer’s National Insurance and pension contributions, can all be claimed as a business expense, so you’ll put these on your Self Assessment or MTD Income Tax return as normal. Just remember that sole traders can’t employ themselves!

How outsourcing can help your small business

Quite simply, you may not have the time or energy to handle every small thing involved in running a business. Trying to do so may prevent you from dedicating time to more important things, like finding new clients and building your brand.

There may be tasks which require specialist knowledge you just don’t have, such as bookkeeping, or building a website.

Even though you’re a sole trader, that doesn’t mean you have to go it alone!

How do I register as an employer?

You’ll need to register for PAYE with HMRC before the first payday, and you can do this up to 4 weeks in advance.

HMRC will send out your Employer Reference number (also known as a PAYE reference), which you’ll need to make submissions to HMRC telling them about your employees’ wages.

It’s your job to deduct income tax and National Insurance from the wages of eligible employees and pay them on to HMRC on their behalf.

What are my obligations as an employer?

As an employer, your main obligations to an employee of yours are to:

• Provide them with a written statement of work (contract)
• Ensure you’re offering them the minimum or living wage, as appropriate
• Check if you need to auto-enrol them into a workplace pension
• Ensure their working environment is safe
• Offer legal working hours

 
Find more help in our online accounting hub, and learn more about how to find the right accountant for your business.

The post Can Sole Traders Hire Someone Else? appeared first on The Cheap Accountants.

It’s a worrying statistic that needs addressing, so that there is awareness and support available in the workplace, whatever the hierarchy.

Whether it’s the part-time cleaner or the CEO, mental health matters

No matter what the size of the business, or the position held, looking after the emotional wellbeing of staff should be a top priority. It shouldn’t need a diagnosis for personal wellness to become a consideration.

According to mental health charity, MIND, 1 in 4 people will experience a mental health problem. Job title, salary, or level of responsibility, will not influence this. Mental wellbeing is something that unites us all.

With this in mind, we’ve put together a few pieces of key advice on what businesses can be doing today to consider the health and happiness of their staff

Feel the benefits of flexible working

You don’t need us to tell you that mental health issues don’t come with an on/off button, nor do they fit in nicely around your work and social schedule. They happen when they happen, and for this reason it’s beneficial for employers to permit a bit of slack around working hours and location.

Allowing staff to come in an hour or so later, or to work from home if they feel that they need to, is a great way to show that their wellness is being considered and accommodated.

Be transparent about the business’ ups and downs

If you own or work within a large company with multiple offices around the country (or even the world), this is more difficult to achieve, but not impossible.

Making time to keep staff – at all levels – in the loop goes a long way towards reducing anxiety, and fosters a culture of trust amongst the workforce.

Don’t stand in the way of socialising

30% of those who have a best friend at work are 7 times more engaged with their jobs. Doing what you can to stimulate social relationships improves communication. It ensures staff have somewhere to turn to if they need to talk.

Let’s get physical!

Encourage walking meetings, stand-up meetings, lunch time fitness classes and freedom of movement around the workplace.

Whatever gets staff moving without damaging productivity is a great way to capitalise on the connection between physical health and mental vitality. Getting outside at breaks, beach walks and park walks.

The post Nurturing Mental Health at Every Level appeared first on The Cheap Accountants.

Common examples of staff benefits might include gym membership, health care, or the cost of their daily travel. Providing perks like this can be good for workplace morale, but it’s entirely up to you whether or not you decide to go ahead.

It’s generally something which benefits the employee personally in some way, rather than solely something they need to do their job.

Before making any decisions it’s crucial that you understand the potential tax implications of offering perks to your employees. Known in the tax world as benefits-in-kind, this might impact both you as the employer, as well as your employees.

Is it worth offering benefits in kind to my staff?

Staff perks are a way of adding value to what staff receive from you, on top of their existing pay. Combining these so-called fringe benefits or BiKs with a base-line salary can help you build a very attractive employment package, which in turn can be a valuable tool for recruitment and staff retention.

Attracting great staff with a strong recruitment package

The recruitment market can be very competitive, especially if you have niche roles or gaps in your expertise to fill. It’s why some employers decide to make the idea of working for them as attractive as possible. This usually involves offering a competitive salary, but adding other value, such as perks, can also help sway things in your favour.

Retaining great staff with perks

Everyone likes to feel like they’re being recognized, so showing appreciation to existing employees can help you keep them around for as long as possible.

Make life easier for your employees

A good example of this is providing a company car to an employee whose role requires a lot of travel. It shows that you’re thinking of their comfort and wellbeing, and can be a good option for them if they don’t need to up-front the cost of travel before claiming it back later.
 

What are the tax implications of benefits in kind?

These so-called fringe benefits might not take the form of cash, but they do have a financial value, and as such tax may be subject to tax and National Insurance. This means that employees can’t simply be paid in perks rather than their normal wages as a way of avoiding tax!

The slightly confusing part about BiKs is that some of them are taxable, and some aren’t.

For instance, work-related training or safety clothing and equipment your employee needs to do their job may not be classed as a benefit!

How to report benefits in kind with a P11D

You might sometimes hear these staff perks referred to as P11D benefits because of the name of the form used to report them to HMRC.

If you have staff and you offer them any type of perk, you must submit a P11D to let HMRC know about it, including the relevant dates and values of all benefits in kind provided. You can do this:

• Via your own payroll software
• Using HMRC’s PAYE Online service once you’re registered for PAYE
• Through the post

If you already pay tax on employee benefits via your payroll system (like you might do with any deductions you make on their wages) you won’t need to submit a P11D for them.

However, whether you already deduct and pay tax on employee benefits through your payroll or not, you do still need to be aware of P11D(b) forms.
 

What is a P11D(b)?

A business owner is required to submit a P11D(b) form at the end of each tax year to let HMRC know how much Class 1A National Insurance needs to be paid. This is because employers make National Insurance Contributions (NICs) on the value of BiKs their employees receive, including company directors.

A P11D(b) also summarises each employee’s individual P11D.
 

Do I need to tell my staff about the P11d form?

You don’t legally need to provide employees with a copy of the BiKs information you submit, but we do recommend it. If there are any issues with their pay or tax record, it makes things much simpler to sort out!

Reminder: Don’t forget to keep all your receipts and expense forms organised, filed away and accessible for a minimum of six years as part of good bookkeeping and accounting practices.

Feeling stuck? We’d recommend seeking the support of a qualified accountant. Compare accountancy packages here to get started.

The post Do I Have to Give Perks to Staff? appeared first on The Cheap Accountants.

This might always have been their intention, and now that they know you’re interested they’re ready to discuss the package in more detail. Sometimes the negotiation is driven by their current employer trying to entice them to stay, and offering to beat your offer. In fact, 50% of candidates that resign will be counter offered by their current employer, research shows.

So what happens next?

Don’t be afraid to say no if you need to

No matter how impressed you were during the interview process, if the budget can’t afford them, then you need to accept it. Agreeing to meet or beat a counter offer when your finances aren’t equipped could land you in all sorts of trouble.

It’s also perfectly fine to reject a counter offer if you don’t feel it is justified. Communicate this clearly and you never know, they may compromise in order to secure their new role with you.

See if you can compromise with other non-monetary perks

If you simply can’t afford to trump a counter offer, don’t despair just yet. Try explaining that you can’t meet the increase in salary right now, but you can offer them some other benefits.

This could be one, or a combination of the following ideas:

• The chance to increase the salary following a performance review 12 or even 6 months down the line
• Flexible working hours and the chance to work from home
• Training which you will invest in on their behalf
• Other ways to save them some money e.g. free parking, free/discounted gym membership

Speak to your accountant

When it comes to matters relating to money, it’s always a good idea to touch base with your accountant. They will be able to look over your finances and offer honest advice about whether you can afford a higher salary.

The post What to Do When a Candidate Comes Back with a Counter Offer appeared first on The Cheap Accountants.

Realise your advantages

Whilst feeling daunted by larger competitors, it is easy to lose sight of the fact that you have advantages too. Many individuals don’t want to be a ‘cog in a machine’. They want to be able to make their mark and have their individual contribution recognised.

As a small employer you have the ability to offer individuals diverse roles which allow for their self-development. You can be flexible and easily notice value-added rather than hours put in. Realise that you have advantages as an employer.

Be a good boss

There a number of reasons why individuals become dissatisfied in their role and leave. This may include advancement opportunities or a change in personal circumstances.

Frequently cited is a poor relationship with their boss. This is in your control. You cannot put a price on the positive relationship you build with your employees. It makes them want to come to work and give their best. Don’t underestimate its power.

Ask them how they are, what their children are up to, or what they did at the weekend. Take an interest in their volunteering. Simply show that you are interested.

Be appreciative

You may not be able to throw performance related pay in to the mix, or dish out large bonuses but this doesn’t mean you can’t show appreciation. Make sure you notice when someone does something well and say so. Let them leave a little early to go to their child’s sports day without using annual leave because they worked late to get that last project out. Give them a Christmas gift with meaning.

Be collaborative

A huge advantage you have over large businesses is that you can make the organisational structure relatively ‘flat’ without tiers which create an ‘us and them’ culture. Instead, show that you value the individual contribution of each employee by actively seeking their collaboration in a range of different areas.

Create a nice place to work

Small employers can create workspaces which are unique and personalised. The result is a nice and comfortable working environment conducive to productivity. This can extend to allowing remote working (where feasible) or break areas which encourage creativity.

Pass on the feedback

When positive feedback comes in, share it with the relevant employees. Your business thrives because you aren’t faceless, so thank the very faces who are making it work. A quick email to say it’s been noticed can create a real feel good factor to someone’s day. Similarly, keep a stock of small rewards (e.g. gift cards) which you can hand out at impromptu moments for a job well done. It’s about recognising the individual.

Be creative with benefits

You may not be able to offer private health care or generous car packages, but that doesn’t mean you can’t offer benefits which your employees value. Perhaps provide lunch on Fridays through a local sandwich delivery company, or give generous annual leave allowances.

What does your small business do to keep employees happy?

The post How can you compete with bigger businesses to keep your employees happy? appeared first on The Cheap Accountants.