Employees are acting their wage in the jobpocalypse – Can businesses help them, tackle the Gender Pay Gap and keep growing?

2026 is now nearly halfway over, so this is an excellent time for businesses to reflect on how the year so far has been treating them.

Economic shocks have been steady as this year has seen fresh conflict in the Middle East and the world’s first trillionaire.

This backdrop is putting pressure on UK businesses and individuals, while domestic policy like the Employment Rights Act may make things more complicated.

Employers have to manage rising costs, employee engagement and shifting regulations – is it time for more support?

The increasing strain on businesses

With little in the way of dedicated Government assistance, UK SMEs may feel particularly vulnerable to multiple sources of pressure.

The impact of global economic stability, seen with rising energy prices and disrupted supply chains, may continue even once immediate crises are resolved.

The cost-of-living crisis is keenly felt by individuals, who turn to their employers for pay rises that would offset the increase in their own bills.

If pay rises are not forthcoming, or deemed to be inadequate, then employers risk alienating the people who keep the business going.

On paper pay increases may have less value, as the real-world value of salaries has largely stagnated since the 2008 financial crisis.

While the Government’s attempts to address the cost of living have seen the National Living Wage (NLW) and National Minimum Wage (NMW) both increase, this may offer little comfort to other employees.

Rather than being the catalyst for universal wage growth, rising NLW has resulted in the gap between minimum wage and graduate salary falling significantly and many graduates are not even earning more than the bare minimum.

Jobpocalypse and acting your wage

The reforms to employer National Insurance Contributions (NICs) have managed to heighten the difficulties faced in managing rising employment costs.

Unfortunately, the economic reality of the situation garners little sympathy from employees who are struggling to afford their bills as well.

Social media has seen many movements spring up in response to the crisis, with acting your wage being touted as the effective work ethic of the modern age.

This sees employees do the level of work they feel matches their salary, with the tacit notion that they will put in more effort if better compensated.

While not as destructive as quiet quitting, the state wherein an employee does the bare minimum in a job they hate because they cannot afford to quit outright, it can have an impact on productivity and workplace culture.

Employees may cling to jobs in this way as rising AI use and harshening economic factors have resulted in the so-called jobpocalypse.

As the unemployment rate sits at five per cent, employers may have more choice of candidates for roles, but may also see more people working jobs of necessity rather than passion.

The conflicting needs of employers to keep costs down and employees to feel adequately compensated could cause ongoing issues in many workplaces across the country.

Employment law changes, financial reality does not

The Employment Rights Act is continuing to expand in scope, bringing with it greater responsibilities for employers to manage their teams.

Trade unions are set for a major revival, while restrictions on unfair dismissal could make it more challenging to address quiet quitting.

A review of the Gender Pay Gap is a priority for all businesses, meaning that pay rises may be required to correct longstanding injustices in the workplace.

Coordinating all of these different factors may be challenging for many businesses and it is best to seek professional financial support.

Our expert accounting team can support you in understanding the current financial position of your business to better approach these conflicting demands.

With a clear budget and effective financial forecasting, it may be possible to determine how and when you can better compensate employees without sacrificing the business to do so.

We can also help you to understand alternative compensation strategies, such as benefits or salary sacrifice schemes, to address employee concerns without such a heavy toll being placed on the budget.

Where cash flow issues are holding you back, we can ensure you are operating tax efficiently and are aware of grants that could help you.

Different finance options can also get your business moving again, but these require expert advice to be used properly.

Ultimately, we know that employers and employees want to face the current cost-of-living crisis with confidence and without conflict.

Unlocking the full financial power of your business may get you a step closer to achieving this without placing livelihoods at risk.

Get in touch for tailored financial support that will help your business tackle its current economic challenges.