Building a better workplace for all, and the costs of not paying above minimum wage
Most business leaders know that staff are their biggest resource, but what happens if there is conflict between generations of staff within an organisation? We share our top tips to build a better workplace for everyone. Plus, the financial cost of not paying staff minimum wage or above – and the legal consequences.
Bridging Generational Gaps: How to Build a Better Workplace for Everyone
Conversations about Generation Z (those born roughly after 1996) and the workplace tend to generate headlines – perhaps even blaming younger workers for disrupting the traditional norms of office culture.
Generational differences are nothing new, but if differences lead to conflict this can be detrimental both to staff and your business. When differences are managed well, though, they can bring out the strengths of every generation – creating a more innovative, resilient and productive workplace.
What’s happening
Many employers are noticing a shift in attitudes. Younger workers tend to value flexibility, mental health, and meaningful work, while many older workers were shaped by more traditional ideas about presence, hierarchy and progression.
Older workers may view the younger generation as lacking “grit” or commitment, while younger employees might see their more experienced colleagues as resistant to change or too wedded to traditional ways of working.
Many Gen Z entrepreneurs are also bringing fresh values into the way they run their own businesses – building businesses that are tech-savvy, purpose-driven, and often more informal.
What can you do?
In the main, it’s about practical management and good communication. Here are a few ideas:
- Review how you measure contribution. If your business still prioritises time in the office or visibility over measurable output, you may find tension between generations. Shifting the focus to outcomes helps value both experience and fresh ideas. To do that successfully, it’s important to recognise that productivity can look different across roles and stages of career.
- Balance flexibility with consistency. Expectations around work-life balance and flexibility vary widely. Having a clear policy that sets boundaries while allowing reasonable autonomy will help both those seeking balance and those who value routine and predictability.
- Create an environment that supports learning. While workers starting on their career are generally looking for progression and purpose, those with more experience benefit from opportunities to refresh their skills, share knowledge and adapt to new technologies. We’re not necessarily talking about training courses. De-emphasising hierarchy in the workplace and finding ways for younger and older workers to team up on projects can provide learning opportunities for everyone.
- Encourage open, respectful communication. Different generations often prefer different communication styles. Agreeing on how and when to communicate – whether by message, call or face-to-face – helps avoid confusion and keeps everyone connected.
- Value different work styles and motivations. Some people thrive on rapid change, others on stability. Help staff understand each other’s preferred way of working so that workloads and responsibilities play to everyone’s skills.
The takeaway
Generational differences aren’t a threat – they’re a resource. For your business, blending the energy and digital fluency of younger staff with the experience and resilience of older workers can be a real competitive advantage.
The most effective goal isn’t to preserve a single way of working but to create one that works for your business. That starts with communication, trust, and a willingness to keep learning from each other.
Government strengthens regulators’ duty to support business growth
The government has announced a major shake-up in how UK regulators operate, aiming to make them more accountable and more focused on supporting business growth.
Beginning last week, regulators have a stronger growth duty, meaning they’ll be expected to balance their oversight role with helping businesses invest, innovate and expand. The change is designed to ensure regulation remains proportionate and doesn’t hold back economic activity.
A new public dashboard of regulator performance will also be launched. The new GOV.UK site, which will be updated quarterly, will bring together performance data into one place and allow for direct feedback to the government.
Business and Trade Secretary Peter Kyle explained that the aim is to strip back unnecessary rules and pointless paperwork while keeping essential protections in place. He described the stronger growth duty and new transparency measures as part of the government’s wider “Plan for Change” to boost investment and job creation.
For business owners, will these changes mean a more responsive and balanced regulatory environment that’s clearer about helping your business grow? Let’s see.
Nearly 500 employers fined over £10 million for minimum wage breaches
Almost 500 UK employers have been fined a total of £10.2 million after failing to pay the National Minimum Wage correctly, according to the latest government list. Following investigations by HMRC, around 42,000 workers have now received back pay totalling £6 million.
The list of employers includes businesses of all sizes and across a wide range of sectors – from retail and hospitality to childcare and manufacturing. Many are well-known household names, showing that even established employers can get caught out by the rules.
The importance of getting it right
Employers found to be underpaying staff not only have to make good the shortfall but also face financial penalties of up to 200% of the arrears (capped at £20,000 per worker), as well as being publicly named. Employers who deliberately fail to pay the minimum wage may face a potentially unlimited fine.
Niall Mackenzie, Chief Executive of Acas, said that failing to pay the correct minimum wage “can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.”
Common causes of underpayment
Failing to pay the minimum wage correctly isn’t necessarily intentional. For instance, a business can get caught out by making deductions or charges (such as for uniforms or office accommodation) that take pay below the legal minimum, or not accounting for unpaid time spent working, such as while training.
A breach can also occur if an employer fails to update pay rates when they change each April. The current rates that have applied since April 2025 are:
- National Living Wage (21 and over): £12.21.
- Ages 18-20: £10.00.
- Under 18 and apprentices: £7.55.
Getting minimum wage payments right not only avoids penalties but also supports staff morale, retention and reputation – all key to running a successful business.
If you need any help with your payroll and minimum wage payments, please get in touch. We would be happy to help you!