Making your children’s nursery more attractive to your staff

With children’s nursery providers struggling with rising costs, the added pressures on recruiting and retaining costs can be overwhelming.

While the Scottish Government aims to review the impact of the disparity of ELC funding on the workforce, there are things providers can do internally to improve their cashflow. Actively holding on to your key staff can not only strengthen your business but help to lower the costs of recruitment and training.

Studies have shown that one of the most important factors that determine staff retention is benefits and there are a number of incentives that can make your workplace more attractive to employees and potential recruits that aren’t necessarily an increase in salary.

One option is offering discounted childcare for your staff however, it is important that this transaction is recorded correctly to ensure compliance with payroll legislation so it is important to talk to your accountant to ensure the correct processes are in place. For example, a recent HMRC PAYE investigation into a nursery in the Midlands uncovered that the incorrect treatment of discounted childcare for staff members resulted in those staff being inadvertently paid less than the national minimum wage for the last 10 years. The findings of the investigation resulted in the nursery being placed into liquidation due to the size of the assessment issued by HMRC.

To discuss the benefits of employer supported childcare, or any other available options to motivate your key people, please get in touch with our EQ Healthcare team via healthcare@eqaccountants.co.uk or call one of our offices.

Alternatively, if you would like more information or support with any payroll query, or to discuss outsourcing your payroll function, please contact our EQ Accounting payroll team today on info@eqaccounting.co.uk or call 01382 312140.