Employer NI & Hiring in Marketing: The Trends Business Leaders Need to Watch

With Employer National Insurance (NI) contributions set to rise in 2025, businesses must rethink their hiring strategies, particularly in marketing, where agility and cost-efficiency are key. Hiring day-rate contractors instead of permanent staff allows companies to avoid Employer NI costs while maintaining the flexibility to scale teams based on demand. This approach provides access to specialist expertise for key projects without long-term financial commitments, ensuring marketing teams remain competitive and responsive to market changes. As demand for adaptable, project-focused marketers grows, businesses must embrace flexible workforce solutions to navigate these changes effectively.

Employer NI Changes Coming in 2025

From 6 April 2025, three major updates to Employer NI will take effect:

1 - Higher Employer NI Contributions – The employer Secondary Class 1 NI rate will increase from 13.8% to 15%. This means that for every employee earning above the secondary threshold, businesses will need to allocate a larger portion of their payroll budget to NI contributions. The increase will have a notable impact on sectors with high staffing costs, including marketing, where hiring flexibility is often critical to responding to market trends and project demands.

2 - Lower Secondary Threshold – The earnings threshold at which businesses start paying NI will drop from £9,100 to £5,000 per annum. This change means that more employees will fall within the NI contribution bracket, increasing the total NI liabilities for businesses. Companies with a large workforce on lower or moderate salaries will feel the effects most sharply, as they will see a rise in their tax obligations for each employee crossing the new lower threshold.

3 - Expanded Employment Allowance – Smaller businesses will see an increase in the Employment Allowance from £5,000 to £10,500, and the previous £100,000 eligibility cap will be removed, making more employers eligible.

These changes are expected to place increased financial pressure on businesses, forcing them to reassess how they manage staffing and operational expenses to remain competitive. Employers will need to adopt a more strategic approach to workforce planning, weighing the costs of full-time employment against more flexible staffing solutions. Larger organisations may restructure their teams to balance essential in-house expertise with outsourced specialists, while SMEs could increasingly rely on external contractors to keep overheads manageable.

Why Marketing Hiring Strategies Must Adapt

Marketing teams often operate with constrained budgets, balancing the need for creative and data-driven campaigns with cost efficiency. With rising employment costs, businesses must explore alternative hiring models to remain competitive.

One key strategy is hiring day-rate contractors rather than full-time employees. This approach offers:

Reducing Costs Without Compromising on Expertise

Hiring contractors instead of full-time staff means businesses are not liable for Employer NI contributions, resulting in significant savings. Given the planned increase in Employer NI rates, businesses that rely heavily on in-house teams will see payroll costs rise sharply. Moving towards a contractor-based model provides access to high-level talent without the additional financial burden of Employer NI, pension contributions, and other overheads associated with permanent employees. This approach is particularly effective for marketing teams, where projects fluctuate in scale and complexity, making financial flexibility a priority.

Building a Workforce That Expands and Contracts as Needed

The unpredictable nature of marketing campaigns—where demand peaks around product launches, seasonal promotions, and strategic pivots—makes a fixed team structure inefficient. Engaging contractors allows companies to scale their workforce up or down in direct response to market activity and business goals. Rather than maintaining a large full-time team, which may be underutilised during quieter periods, businesses can bring in external specialists for specific tasks and short-term objectives. This prevents budget waste while ensuring resources are available when needed.

Accessing Highly Skilled Specialists for Maximum Impact

Marketing is increasingly dependent on specialised skills, whether in paid media, growth strategies, data analytics, or AI-driven customer insights. These areas require high-level expertise, and recruiting full-time staff with such niche skill sets can be both expensive and impractical. Contractors bring immediate value by delivering targeted solutions without the delays of onboarding, training, or long-term salary commitments. They often work across multiple industries and projects, bringing fresh perspectives and cutting-edge methodologies that in-house teams may not have the capacity or experience to develop. By incorporating contract talent, businesses can remain competitive, delivering high-impact campaigns while keeping internal teams lean and agile.

Ensuring Compliance and Effectiveness

While contract hiring presents clear financial advantages, businesses must ensure they implement it correctly. Poor implementation can lead to compliance risks, workflow inefficiencies, and the loss of key insights when projects conclude. To maximise the benefits of this model, businesses must focus on three core areas:

Regulatory Compliance

Employers must follow HMRC’s IR35 regulations to classify contractors correctly and avoid penalties.

Team Integration

Onboarding processes should ensure contractors align with brand messaging and internal workflows. Additionally, enabling a culture of inclusion between permanent staff and contractors ensures seamless collaboration and prevents silos from forming.

Knowledge Retention

Establishing clear knowledge-sharing protocols prevents skill loss when contractors leave a project. Regular debriefing sessions at the conclusion of a contractor’s engagement can help capture valuable insights and ensure a smooth transition.

By focusing on compliance, integration, and knowledge management, businesses can fully leverage the benefits of contract hiring while minimising potential risks. A well-structured contractor engagement strategy not only saves costs but also ensures that marketing teams remain responsive, innovative, and equipped with the expertise necessary to navigate an increasingly competitive space.

Future-Proofing Your Marketing Team

As demand for adaptable, project-focused marketers grows, EMR is here to help. Waiting to react to these changes could mean falling behind, both in talent acquisition and cost management. By rethinking hiring strategies now, businesses can sidestep rising Employer NI costs while building a marketing function that is both adaptable and competitive. EMR is ready to help you secure expert talent, whether for short-term impact or longer-term strategic goals. Don’t get caught off guard when the new rules take effect. Get in touch today to make sure your workforce is ready.