Will Labour’s Policies Revolutionise Your Management Approach?

The rise of the new Labour government will significantly impact how businesses operate, recruit team members, and manage employees in the years ahead.   

Although new policies are still in the early stages of implementation across the country, Labour’s employment reform plan is already pushing companies with financial teams to rethink their management strategy. Business leaders today will need to update their hiring processes to focus on workplace wellbeing and talent development efforts to thrive going forward.  

Here’s a behind-the-scenes guide to the challenges and changes you’ll need to navigate in the year ahead and the strategies you can use to adapt to new workplace standards. 

The Key Labour Policies Affecting Businesses

The “Plan to Make Work Pay” proposal introduced by the Labour government this year will significantly change how today’s businesses operate. Though some policies and initiatives are still being defined, some of the most significant issues to prepare for include: 

Updates to Employment Rights and Worker Protections

Labour is keen to give employees in all sectors more rights and support. The government will be cracking down on unfair dismissal cases and potentially eliminating zero-hour contracts from the workplace. The government has also said it plans to introduce new support for contract workers (giving them access to more benefits like day-one statutory sick pay).  

Plus, Labour will update the Low Pay Commission guidelines based on the current cost of living, making salary benchmarking essential for business leaders. To adapt, companies looking to attract and retain talent will need to build new remuneration and benefits plans and rethink their hiring policies. 

Changes in Corporate Taxation and Reporting

Although the Labour government currently plans to cap corporation tax at 25% for its term, there’s always a chance that some companies may be exposed to higher taxes. After all, the government needs to find a way to fill a £25 billion economic gap and has already promised not to increase income tax or employee national insurance.   

Even if companies have a more predictable tax environment to look forward to, Labour has said it will focus on more transparency in the years ahead. Companies will need to take extra measures to ensure they’re reporting their income accurately and sharing insights into how they pay workers and invest in sustainability initiatives. New reporting requirements will mean companies must upskill their financial teams. 

Investment in Skills and Training

Labour’s manifesto focuses on upgrading education and training throughout the UK to build a more skilled workforce and bridge digital skill gaps. While companies should already be investing in upskilling and training initiatives to engage and retain top talent, there will be a stronger focus on development in the future.   

Companies will need to ensure they’re investing in comprehensive training initiatives tailored to their employees’ different learning preferences. Additionally, they may need to consider focusing more on apprenticeships and learning opportunities for new graduates. Failure to invest enough effort into employee development could make it difficult for employers to navigate skill shortages and retain staff in the years ahead. 

Green Economy Initiatives

Environmental sustainability is another cornerstone of Labour’s agenda. The government plans to implement various policies to reduce carbon emissions at scale. Businesses can expect to see new incentives and regulations geared towards boosting sustainable practices.  

This could lead to an increased need for financial employees focused on ESG accounting activities and reporting practices. It will also mean businesses must invest more time and effort into tracking their carbon footprint and approach to sustainable finance.   

Public Sector Spending

Labour’s focus on finding ways to rebuild the private sector could mean that fewer resources are available to it in the months ahead. Labour has noted that it is also focusing on scaling regional financial centres alongside established hubs throughout the country, which could be a positive move for smaller companies.  

In the future, all companies with a financial team will need to take a more cautious approach to budgeting and expense tracking to ensure they can continue to adapt quickly, even if they have reduced access to government support. 

Adapting your Management Approach: Top Tips

With the new policies from the Labour government set to influence everything from budgeting and reporting practices to hiring and talent development processes, companies need to be ready to evolve quickly. Here are our top tips for preparing for change. 

Embracing Flexibility and Agility

The months ahead will likely introduce a period of consistent change for companies of all sizes. Businesses must adapt to a new focus on green initiatives, evolving reporting requirements, and changing workplace policies. In particular, Labour will encourage companies to embrace new technologies such as AI and automation in the finance sector.   

This means agility and flexibility will be necessary in the future. Companies won’t be able to rely on rigid structures. They’ll need to foster an agile environment where employees feel comfortable experimenting with new processes and adapting to change.   

A practical approach to change management will be valuable here, particularly regarding scenario planning. Regularly identifying potential regulatory shifts, technological advancements, and market changes that could influence your finance team’s operations will help you prepare your staff for upcoming evolutions. 

Creating a Culture of Continuous Learning

Labour will ask companies of all sizes to introduce new coaching, training, apprenticeship, and upskilling programs in the years ahead. Finance employees will also need regular training to adapt to the sector’s latest technologies and regulatory requirements.  

Creating a continuous learning culture will help businesses prepare for this shift. Encourage teams to regularly assess their strengths and weaknesses, experiment with new processes, and seek new training opportunities. Design comprehensive programs focusing on new trends like environmental social governance initiatives and green finance.  

Encourage cross-functional learning by designing buddy systems and mentorship programs that drive employees to share their insights with staff from other departments. Focusing on continuous learning will help employers adhere to the new expectations set by the Labour government and make it easier to attract and retain top talent in the years ahead. 

Enhancing Communication and Transparency

Communication is critical during periods of change to ensure team members remain engaged, informed, and empowered. Transparent communication also helps companies maintain stronger client relationships, which will be crucial in an uncertain economy.  

Externally, focus on transparency with your reporting initiatives and sustainability efforts. Internally, ensure clear communication channels are in place and request regular feedback from employees at all levels of the organisation.   

Use internal newsletters and regular meetings to update staff members about business strategies, changes in regulatory policies, and new business goals. Open dialogue will help ensure everyone on your team stays aligned as they move forward into an unpredictable future. 

Prioritising employee wellbeing

Labour’s focus on enhancing employee experience goes beyond ensuring that employees are paid fair wages. The government also plans to introduce various initiatives to improve work-life balance and wellbeing. For instance, the new “Right to Disconnect” policy will allow staff members more freedom to switch off from the office outside of their contracted hours.  

Additionally, Labour may be introducing a new right to request flexible work from day one of employment. This will require companies to shift their approach to improving work-life balance. Consider re-evaluating flexible working opportunities for team members, such as hybrid and remote work options and flexible schedules.  

Additionally, management teams should prioritise helping staff improve their mental and physical health by encouraging them to take regular breaks and disconnect from the office when necessary. Again, focusing on employee wellbeing will help your company adapt to new Labour policies and could improve your ability to attract and retain talent. 

Take Advantage of Technology

Technology significantly impacts the business world, including finance teams, helping them automate and streamline various tasks. In the future, managers will need to take advantage of technology more often for different reasons.  

They’ll need to experiment with AI and machine learning tools to help create reports and maintain compliance as new regulations are introduced. For instance, AI tools can help businesses monitor ESG metrics in real time, which could be crucial for the future of green finance.  

Technology can also help businesses reduce bias in hiring decisions by hiding personal details on a candidate’s application or CV. This will allow businesses to meet growing demands for diverse, equitable, and inclusive hiring practices.   

Improving Cross-Functional Collaboration

Adapting to the new Labour government’s initiatives revolving around green finance, technological innovation, and transparent reporting will require a holistic approach. Companies must take extra measures to ensure finance teams aren’t walled off from other crucial employees.   

Cross-functional teams, compromising employees from diverse areas such as compliance, operations, and risk management, will be essential for tackling complex challenges. Additionally, cross-functional collaboration initiatives will help to improve knowledge sharing and talent development in companies.   

Focus on finding ways to bring teams together in an equitable and inclusive company culture to break down the silos between departments in your organisation. This will ensure your company can remain agile and respond to changes swiftly and efficiently.   

Updating Management Practices for the Future Workplace

Ultimately, Labour’s new employment initiatives will require introducing a new management style and a new breed of leadership in every business. Companies must ensure they’re developing leaders capable of driving cultural change, promoting sustainability, and navigating unpredictable new environments.  

However, by focusing on employee experience, adaptability, and collaboration, you can improve your chances of developing and retaining a high-functioning finance team in the years ahead. Take a proactive approach and update your management strategy now. 

Thanks 

Rachel Mitson

About Rebus Financial Recruitment 

Rebus Financial Recruitment provides a specialist and focused recruitment service to its customers, ranging from various organisations, including SMEs, to large PLCs. 

We strive to offer both the client and candidate a seamless recruitment experience. Using our expertise, we get to the heart of employer and employee needs, and, in doing so, we match the two perfectly. 

To learn more, contact one of our team members today or call us at 01282 930930.