How To Correct This Financial Imbalance?

I've just had the new pension arrangements explained to me today - and wading through all the confusion it seems that smallish companies like ours will be paying higher employer contributions. That together with higher salaries and company benefits, you have to think very carefully before taking on new staff and making a profit. Whilst I baulk at price hikes like everyone else I do understand the reason for some of them at least

You can't blame anyone for doing that really but it seems all wrong to me. I know small employers will say they can't afford to pay more and it may well be that some large employers are in the same position because of market changes. Wish I had the answer.

Maybe as the unemployed numbers continue to fall employers will have no choice but to pay more to get the calibre of staff they need? Then of course we will all complain that prices go up, exports tail off..............................