The Perfect Storm – The Rising Cost of UK Employment vs. Staff Wellbeing and Burnout

I’ll just get this out of the way—having an offshore team is not about stopping investment in the UK. Frontline clients don’t stop recruiting in the UK because they have an offshore team in Manila, but they can be more selective about who they recruit.

After the recent UK Budget, businesses across the nation are facing a new reality: the cost of employment is rising fast. With increased minimum wage and National Insurance contributions, accounting firms and their clients are under pressure to reassess their hiring strategies.

"Every hire is an investment—make it count."

Recruitment mistakes are no longer just unfortunate missteps—they carry a financial penalty in terms of recruitment fees, compliance costs, and productivity losses.

This high-cost environment is coupled with alarming levels of staff burnout. Nearly 50% of accountants surveyed by CABA say they constantly or often experience symptoms of burnout. The pressure on owners, CFOs, and Partners to ensure their team is properly supported has never been greater.

"Burnout is real. Smart resourcing is the cure."

Higher employment costs may deter some companies from expanding their UK workforce, but they can still invest in supporting their team. Businesses must refine their resourcing and workforce strategy, focusing on the selection and development of employees while also integrating offshore support to enhance team productivity and efficiency.

1. The Cost of Poor Recruitment Decisions

Every hire is an investment. With rising employment costs, every hiring decision needs to be calculated. Gone are the days when hiring managers could afford to ‘take a punt’ on someone.

Recruitment fees are typically around 20% of starting salary. Factor in onboarding time and resources required to bring a new employee up to speed, and a poor hire becomes an expensive liability, draining productivity and disrupting team performance.

"The right people, in the right roles, at the right cost."

So, what can be done about it? Firms need a strategic approach to recruitment and people management.

2. Performance Management

Firms simply cannot afford to carry underperformers. With remote work prevalent, staff need accountability. Performance management is essential to ensure that every team member contributes to the organization's success.

3. The Sum of the Whole Team Is More Than Its Parts

Businesses must be deliberate when hiring. Recruitment can no longer be about putting ‘a bum on a seat’—it must be about selecting candidates who add measurable value.

A well-considered recruitment process is an investment that pays off. Beyond hard skills, businesses should evaluate a candidate’s personal values and cultural fit. A hire who resonates with the company's mission is more likely to stay motivated and enhance overall team morale.

"A strong hire is more than skills—it’s the right fit."

A thoughtful hiring approach fosters a positive team dynamic, crucial for productivity and innovation.

4. Offshore Support: The Efficient Solution to Enhance Onshore Teams

As part of every recruitment and resourcing plan, firms need to balance rising UK employment costs with offshore support. By integrating an offshore team, businesses can achieve efficiency without compromising quality.

With the right training and support, offshore teams can handle all tasks that UK teams currently do. (I’m happy to introduce you to many of our existing UK firms already doing this.)

Offshore teams can also lighten the load by taking on routine or administrative tasks—the kind of things tech automation just can’t do. This allows onshore teams to focus on strategic, high-value activities that drive business growth.

"Offshore support isn’t about cutting jobs—it’s about working smarter."

The division of labour, or ensuring ‘the right people are doing the right jobs,’ is key to maintaining efficiency and profitability as employment costs rise.

Offshore support provides flexibility, enabling companies to scale their teams without the constraints of a tight recruitment market.

This approach allows businesses to focus investment in UK roles crucial for customer engagement and growth while relying on offshore teams for functions that can be managed remotely.

5. Investing in Employee Development to Maximize ROI

Higher employment costs should also encourage businesses to invest more in employee development. An employee’s value to your organization grows with skills. Fostering a culture of learning leads to higher performance and retention.

By offering development opportunities, companies can motivate employees to engage in their roles more fully, enhance their skills, and contribute meaningfully to the business.

Frontline is investing heavily in rolling out our new training program to supplement what is provided by our partner firms.

A well-trained employee is more likely to exceed expectations, no matter where they are based. Investing in employee development reduces turnover rates, as employees are more likely to stay with companies that invest in their professional growth.

It’s Time for Strategic Workforce Management – Talk with Us Face to Face!

Frontline has been helping our clients build strategic workforces for well over a decade. If you would like to discuss how we can help you win the talent battle, scale efficiently, or simply get the right people doing the right jobs, we’d love to speak with you.

The Frontline management team will be on the road at accounting events throughout 2025.

With prominent stands at all the events below, click the link to book a time to speak with us on-site or to arrange a coffee, beer, or round of golf!