What Are The Impacts of Increased Staff Overheads?
Higher overall operational costs
There's little room to manoeuvre when your operational expenses are climbing while your revenue remains relatively the same. Employer National Insurance now sits at 15%, up from 13.8%, and applies from a £5,000 threshold, down from £9,100. Meanwhile, the National Living Wage has risen to £12.21 per hour, marking a 6.7% increase. The maths is simple: if you're operating on a 4% margin and your staff costs increase by even 10%, you're looking at a direct hit to your bottom line that's difficult to offset through price increases alone. For a full-time worker on the minimum wage, the combined impact is even more dramatic: an additional £2,500 per employee per year. For every finance team member you employ, you're now paying significantly more, not because they're working more hours or taking on additional responsibilities, but simply because regulatory changes have made each employee more expensive to maintain on payroll.
Slower hiring decisions
Each additional hire has become substantially more expensive, limiting your ability to expand teams during busy periods. What once might have seemed like a straightforward solution (bringing on extra AP support during month-end or hiring seasonal finance help during your peak trading months) now requires much more careful consideration. Limited budgets for hiring may also slow your operational scaling or investment in new projects altogether. Employers now need to justify every hire financially, focusing intensely on productivity and cost-effectiveness rather than simply filling gaps. Each potential new team member must demonstrably add more value than they cost, which creates a high bar for recruitment.
Greater reliance on existing staff
As your business grows, so too does your number of covers, suppliers, and invoices, and this has a major impact on workload. Long nights and early mornings all begin to take a toll. But with hiring costs skyrocketing, the solution of hiring more staff is out the window. This is made even more challenging by the industry’s elevated staff turnover, which has become the status quo. Overworked staff, stressful conditions, and seasonal burnout are a recipe for disaster. Retention becomes impossible. Hiring becomes expensive. Manual processes push your team to their breaking point.
So, how do you retain the team you have? Enable them to work smarter, not harder.
How Lightyear Helps To Reduce Staff Overheads
Reduced Operational Costs
Manual AP processing is incredibly time-intensive. Your team likely spends countless hours each week on data entry, chasing paperwork, seeking approvals, and correcting errors. Lightyear eliminates more than 70% of this manual work, allowing your team to process significantly more invoices without increasing the team size.
Whether it's a busy December or a quieter January, you're no longer held hostage by seasonal fluctuations or forced to hire just to manage busy periods. In practical terms, if you currently process 500 invoices, Lightyear can help you manage twice the invoices during busy periods without increasing your team size. This means you can hire for long-term, strategic growth rather than managing fluctuating paperwork.
Reduced Dependency on external hires
When the platform handles the repetitive, time-consuming tasks without needing another team member, you minimise your risk of costly hiring cycles. If you avoid even a single hire, you can more than cover your investment in automation. When you consider that each new employee now costs you an additional £1000 to £2000 annually due to the regulatory changes alone, the return on investment for AP automation becomes immediately clear.
Similarly, when someone hands in their notice, the remaining team can maintain the workload while you recruit properly. You're not forced into an expensive panic hire. Automation gives you breathing room to find the right person rather than just the first available person, which protects you from making costly hiring mistakes under pressure.
Your new team members also become more productive when the system guides them through processes. If automation cuts the training period from 5 months to 1 month, that's 4 months of full productivity you've gained.
Enhanced Efficiency of Existing Team
When you implement Lightyear, your existing team can process invoices 60-70% faster because automation handles the low-value manual tasks that previously consumed their day. For example, WG Carter reduced their invoice processing time from 3 days to 1 with the same team size. Instead of spending their days keying invoice details and chasing email approvals, they're resolving supplier queries, analysing spending patterns, negotiating better payment terms, and building stronger supplier relationships. When someone's sick or on holiday, your remaining team can maintain processing capacity through automation. You're no longer scrambling to cover manual data entry or worried about invoices piling up during your absence. With Lightyear, invoices continue to move through the approval workflow even if someone takes annual leave or calls in sick.
Final Thoughts
Every hire comes with a cost, and in the hospitality industry, that cost is higher than ever. It’s 5% more expensive to bring on a new employee now, and rising operational expenses are pushing many businesses to the brink. Working smarter with the team you already have can protect your margins and keep your business profitable. Now is the time to automate by implementing Lightyear. The platform empowers your finance team to do more. By streamlining invoice processing, your team can focus on high-value tasks rather than chasing paperwork. Efficiency is now the key to staying profitable in a challenging market.
