5 Ways HR Software Can Help Social Care Businesses Save Big
Rising employer National Insurance contributions are eating into already tight budgets, making it harder than ever to deliver top-notch care. But here’s the good news: HR software isn’t just a fancy tool; it’s your secret weapon for cutting costs and staying ahead.
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Anoushka Farouk
Head of Marketing
Jan 23, 2025
Let’s face it—running a social care business in the UK is tough. Rising employer National Insurance contributions are eating into already tight budgets, making it harder than ever to deliver top-notch care. But here’s the good news: HR software isn’t just a fancy tool; it’s your secret weapon for cutting costs and staying ahead. Let’s dive in.
1. Crack the Code on Smarter Scheduling
Labour costs—including those eye-watering National Insurance contributions—are a huge chunk of your budget. But guess what? HR software can help you master the art of scheduling like a pro.
Here’s How:
Automate shift planning to match staffing with actual care needs. No more overstaffing or paying for unnecessary hours.
Track overtime trends and shuffle workloads to slash those extra expenses.
Let staff use shift-swapping features—less admin for you, more flexibility for them.
By fine-tuning schedules, you’ll keep costs down and care standards up. Win-win!
2. Say Goodbye to Recruitment Burnout
High staff turnover in social care isn’t just exhausting—it’s expensive. Recruitment fees, training costs, and lost productivity all add up. HR Software could save valuable resources and money.
Here’s How:
Speed up hiring with applicant tracking systems. Find the right people, faster.
Streamline onboarding to save time and money.
Boost retention with tools that keep staff engaged and invested in your mission.
Fewer leavers mean fewer recruitment headaches and lower costs. It’s that simple.
3. Automate Payroll and Ditch Errors
Nobody has time for payroll errors—especially when tax and National Insurance rules are constantly shifting. HR software can take the pain out of payroll while keeping you compliant.
Here’s How:
Automatically calculate National Insurance contributions to the penny.
Stay up-to-date with built-in tax compliance features.
Generate detailed payroll reports to keep a close eye on costs.
Let the software handle the number-crunching while you focus on what really matters: delivering great care.
4. Turn Data into Your Best Friend
Think data is dull? Not when it’s saving you money. HR software gives you the insights you need to make smarter decisions and reduce unnecessary spending.
Here’s How:
Spot absenteeism patterns that’re driving up costs and nip them in the bud.
Analyse turnover data to tackle the root causes of staff churn.
Break down National Insurance contributions to see exactly where your money’s going.
Armed with this knowledge, you’ll know exactly where to trim the fat and keep your business lean.
5. Keep Your Best People Happy
Retention is everything. Losing good staff doesn’t just hurt morale; it drains your bank account. HR software can help you create a workplace people don’t want to leave.
Here’s How:
Use recognition tools to give credit where it’s due. Everyone loves a little appreciation.
Offer training and career development opportunities to show you’re invested in their future.
Run regular surveys to get real feedback—and act on it!
Happy staff stick around, and when they do, your bottom-line benefits.
Final Thoughts
The bottom line? Rising National Insurance contributions don’t have to sink your social care business. With the right HR software, you can cut costs, streamline operations, and create a workplace that both your staff and your budget will love. Your business (and your sanity) will thank you for it.
References
National Insurance Contribution Increase
Employers' National Insurance contributions increased by 1.25 percentage points from April 2022. This increase significantly impacts payroll costs, especially in labour-intensive sectors like social care. Gov.uk
Social Care Spending Trends
Gross current expenditure on adult social care by local authorities in England rose from £15.63 billion in 2017-18 to a projected £32 billion in 2023-24. NHS Digital
Government Funding for Social Care
Additional government funding of £2.8 billion in 2023/24 and £4.7 billion in 2024/25 has been allocated to help address rising costs in the social care sector. The King's Fund
Recruitment and Retention in Social Care
Staff turnover rates in the adult social care sector remain high, at 29% annually, costing care providers millions in recruitment and training. Skills for Care
Impact of Overtime Costs
Overtime pay and agency staff costs have significantly increased due to workforce shortages, with some care providers reporting a 30% rise in expenditure on temporary staffing. Care England
Cost-Saving Benefits of HR Software
Automation through HR software can reduce payroll processing costs by up to 80% and cut administrative time spent on scheduling by up to 60%. Gartner
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