Is there ever a perfect time in any organisation?
Yes, there are good times where customers seem to be knocking down your door desperate to do business, but this is typically where we don’t have enough people to supply the demand, and our existing people are over-worked. Then there are the times where customers seem to have forgotten you exist and you are trading heavy of people and other resources.
There are periods of time between these two extremes, but we seem to forget these, and our focus is on the two ends of that spectrum.
When we are faced with adversity of any scale and complexity, we must remember what made us great in the first place and how we can perform in any given moment.
Organisations who panic and make rash decisions without conscious thought and strategy seem to suffer the most in these adverse situations.
Almost every situation can become an opportunity. This is not intended as some cheesy American motivational quote, but a reality that is possible if we look at any given situation from a number of different perspectives. Leadership makes this difference. Being self-aware and applying self-regulation in these moments. Remaining calm and considerate of all possibilities allows the opportunity for rationalisation and measured decisions. Whilst appreciating the things you cannot control, you are challenged to action the things you can.
Remember; people follow what they see their leader do, not what they hear their leader say!
Insights
The Chartered Institute of Personnel and Development (CIPD) has released its Labour Market Outlook for Winter 2024-25, revealing significant shifts in employer sentiment and workforce strategies in the UK.
Key Findings:
- Redundancy Plans: Approximately 25% of UK employers intend to implement redundancies before the upcoming tax increases take effect in April 2025. This marks the highest level of redundancy intentions since the pandemic, indicating a cautious approach to workforce management.
- Cost Pressures: Two-fifths of employers anticipate that the rise in National Insurance contributions, along with increases in the National Living Wage and business rates, will substantially elevate their operational costs.
- Impact on Sectors: Industries such as retail, hospitality, and leisure are expected to be disproportionately affected, with a significant number of employers in these sectors planning to reduce staff levels.
- Public vs. Private Sector Pay: For the first time in four years, public sector pay awards are projected to surpass those in the private sector. This shift is attributed to recent government decisions on pay and tax policies, leading to a growing disparity in wage growth between the two sectors.
Implications:
The report underscores a challenging landscape for UK employers, characterised by increased operational costs and a cautious outlook on employment. The anticipated tax changes and wage pressures are prompting many businesses to reconsider their workforce strategies, potentially leading to a contraction in the labour market. Conversely, the public sector may experience a relative improvement in pay competitiveness, potentially influencing talent distribution across sectors.
As the April 2025 implementation of new tax policies approaches, organisations are advised to assess their financial and staffing plans carefully. Proactive measures, such as investment in automation and productivity enhancements, may help mitigate the impact of rising costs and support long-term sustainability.
To read the report in full visit: https://www.cipd.org/contentassets/cf73843a106949d9b16ac2bc9b526278/8792-lmo-winter-2024-25-web.pdf
News
In a recent article from The Independent, Lara Gilman, Co-Lead of iwocaPay, discusses the increasing importance of flexible payment terms for small and medium-sized enterprises (SMEs) in the UK. The article highlights that 84% of businesses now extend payment terms to satisfy customer needs, a significant rise from previous years. This shift is largely due to cash flow uncertainties, making payment flexibility crucial for both suppliers and customers. However, managing varied payment terms can be administratively challenging, leading to a call for digitisation. Implementing digital business-to-business Buy Now, Pay Later (BNPL) tools can help SMEs manage risks and administrative burdens, allowing them to offer flexible payments without compromising productivity. The article emphasises that while government measures aim to support SMEs, it’s essential to avoid overregulation that could hinder the flexible payment solutions vital to their growth and customer satisfaction.
To read the news article in full visit: https://www.independent.co.uk/news/business/business-reporter/small-businesses-flexible-payments-sme-national-insurance-trade-credit-b2703507.html