**Minimum Wage 2024: How to Prepare for Higher Costs as an Employer**
Dear employers, take heart, something is coming that could cause you to review your business plan and maybe even tighten your belt. From 1. On 1 January 2024, the minimum wage will be €1,253.90 gross, an increase of 4.2% compared to last year. Yes, you read that right. For those of you who think your costs are already too high, get ready because driving will now be even more “fun”.
**Why Lift at All?**
Well, the state says the minimum wage must keep pace with price rises so that workers can survive. We understand that this is important, but can’t it also be a little less painful for our books?
**How Does This Affect Your Business?**
A higher minimum wage means higher labour costs. This can be quite challenging for some businesses, especially SMEs. You may need to find new and innovative ways to increase revenue or reduce other costs. Maybe it’s time that business plan you wrote on a napkin and left in a drawer finally came to life.
**What can you do?**
1. **Cost optimisation:** Review all your costs and see where you can make savings without affecting the quality of your services or products. There may be a subscription you no longer need, or you may be able to switch to more affordable suppliers.
2. **Increase productivity:** Invest in training for your employees or in technology that can help you do more with less. Sometimes a small investment can bring big returns.
3. **Pricing strategy:** You may need to consider adjusting the prices of your products or services. But make sure you don’t lose customers. Subtlety is key.
4. **Communication with the team:** Talk to your employees about the changes and involve them in finding solutions. Often, they might have the game-changing idea.
5. **Humour:** When all else fails, use humour. The next time you have to swallow the fact that your costs have risen, imagine you are paying with Monopoly money. It will be easier, at least for a while.
**Conclusion**
Dear employers, a higher minimum wage in 2024 is like an elephant in the room that we cannot ignore. It’s a challenge, but with a little creativity, good planning and maybe a pinch of humour, you can get through it. Remember, at the end of the day, we’re all in the same boat – unless you have a yacht, in which case, could you please invite the others along for the ride?
