National Insurance Rates for Employers Have Risen – How to Manage Without Diving Straight Into Redundancy

From April, the rise in employer National Insurance contributions has added yet another layer of cost to doing business. For many companies, this shift puts immediate pressure on margins—and the knee-jerk reaction is often to look at headcount.

It’s understandable. People are one of the biggest costs in any organisation. But before rushing into redundancy processes, I urge business leaders to pause and take a more strategic view.

Yes, the reality is that some workforce reduction may happen—but it doesn’t have to start with sweeping cuts. Consider natural attrition: allowing roles to phase out without immediate replacement. Strengthen your performance management: this ensures that if people do exit, it’s the right people—those who are underperforming or disengaged—not those caught in a reactive cost-cutting sweep.

There’s a big difference between managing out and mass redundancy. One is strategic and controlled; the other is blunt and often damaging in the long term.

The key is having the right processes in place—clear performance frameworks, timely reviews, and a culture of accountability. With the right approach, you can reduce cost and retain the talent your business needs to thrive.

I’ve worked with many organisations to manage exactly this type of change. If this has struck a chord, I’d love to chat about how I can support you to do the same—without unnecessary risk or disruption.