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The Official Blog of Daniel Rajkumar

Help us to recruit with an NI Incentive

April5

The government is asking growing businesses to recruit & retrain those from the public sector… I’m asking the government to share the risk of recruitment.

After a failed recruitment attempt, it’s natural for a small business to contract, or to return to their comfort zone, as they were when the size of the team was more manageable.

The truth is that you can do detailed Job adverts, screen CVs to strict guidelines, hold demanding interviews, use any number of psychometric & aptitude tests; (all of which help) but you still don’t know what its like working with someone until you actually do so.

Large companies can mitigate the risk involved with recruitment by taking on more people than they need and expecting an attrition of staff. Alas small companies are force to ‘serve time’ by saving up & recovering the lost investment, before the next recruitment effort.

Were there to be an incentive to encourage growing businesses to rerecruit after a failed attempt, I believe we would see unemployment fall & business growth accelerate.

Here is what I propose:

If an employer decides not to keep someone beyond their probationary 3 months, the the employer would qualify for a rebate to the 12% NI they have paid if:

> They readvertise and fill the position within 60 days of the last person leaving, and
> they can only do this once a year for every 4 employees they have had in employment for over a year.

These 2 criteria are easy to understand & can be verified by HMRC.

The incentive benefits growing businesses & would encourage me & other like me to create more jobs.