Other than the cruel personal impact of COVID-19, there is unequal pain and gain for UK businesses. Hospitality businesses are grounded and businesses with sought after services and products are struggling to cope with demand and managing their supply chain. There is no one magic solution for all! More than ever, business leaders need to keep a cool head and make the right short term decisions to enable their business to survive or operate differently. Supporting staff as far as possible is a defining characteristic of well-led businesses. The businesses that make the right decisions now and plan effectively for how to be prepared to thrive in the recovery should have a bright future post coronavirus. You are no doubt being bombarded by emails and other communications offering advice, help and “seven steps to solving everything”. The UK government has announced an unprecedented range and magnitude of support for businesses and employees – you will have found that many of the … [Read more...]
Power up your business with a Virtual Non-Executive Director
The benefits of Non-Executive Directors are well understood by many successful business owners. They bring an independent view and additional experience that enable better decisions to be made by the management board. Our Home Counties and London Group Business Advisors have developed a Virtual Non-Executive Director (VNED) service that offers Managing Directors and business owners the same independent view and advice without the complexity of shareholdings, appointing legal directors and director’s service agreements. Every company is different and yet there are many similar and transferable aspects from other industries and markets. Our experts are able to utilise their broad business experience and extensive network of contacts to support companies to achieve their strategic objectives. An independent view that challenges existing or new strategies can substantially enhance the robustness of a company’s direction. Sometimes difficult decisions are required to deal with … [Read more...]
Impending Employment Law Changes for 2017
As MDs think about the New Year or start planning for the next financial year there are a number of forthcoming employment law changes that may affect you and your business. Gender Pay Gap True this applies only to large employers (employing over 250 employees) but it is likely to be cascaded down to the SME sector in coming years. So why do something about this now? Gender pay gap reporting applies both to bonuses and pay. If there are discrepancies between male and female workers on either score when employees are doing the same job, there are likely to be fines, the cost of immediate remedial action and potential claims for back pay equalisation going back 7 years. The reporting requirement for large employers will be to publish: the difference in mean pay between male and female employees; the difference in median pay between male and female employees; the difference in mean bonus pay between male and female employees; the difference … [Read more...]
Resolving Directors’ disputes
As business advisers working with MDs we are used to solving business problems and recommending courses of action across the range of business disciplines. Recently we have been involved in a number of cases where we have sought to resolve disputes between Directors and/or shareholders across a range of issues, markets and company size. The purpose of this blog is to show how these disputes have arisen, the process we have followed to resolve them and to give reassurance to readers that you are not alone if you are faced with a potential disagreement and that help could be at hand. How have these disputes arisen? The businesses we have been working in have all been operating for at least 2 years, and in some cases, considerably longer. The theme has been a change in circumstances. From the heady days of starting up, with grand plans, a desire to work with business colleagues without a boss, the reality of running a business has caused cracks to appear, that may have partially … [Read more...]
Dividends, salaries and pensions for company directors – could you save tax by acting now?
If you are a company owner/director you probably don’t need reminding that we live in a constantly changing world of pension and tax regulations. That said, how confident are you that you have acted to ensure you are managing your personal and business tax affairs efficiently in light of recent changes? Below we have listed a few things to consider when talking to your tax advisors. If you take dividends, you have just a few weeks to save future tax - don’t assume that because the new regime affects the year from 6th April 2016 there is nothing you can do now. Instead take the opportunity to both act now and plan ahead. Regardless of when your company year end is, if you have sufficient funds (after corporation tax liabilities have been considered), award yourself higher dividends before the 31st March and save dividend tax that will be payable next year. New tax on dividends – what does it mean for you as a company owner/director? At the moment your dividend income (payments … [Read more...]
Getting maternity leave right with your key employees
Over the last 12 months l have worked with client MDs on 6 cases of maternity leave and on two of these cases, because they have become contentious, I have reflected on the causes of these disputes. Looking at this dispassionately one might say that this reflects a normal distribution – most situations of maternity leave will be managed perfectly well by both employer and employee. However, occasionally, there will be situations where the maternity will cause a rethink in the nature of the employment relationship leading to a dispute. In some cases the maternity accelerates the amicable ending of the employment relationship. I offer these thoughts to better manage the maternity leave process to do the best you can to avoid disputes. As the MD who knows the employee’s situation, you are probably best placed to predict any risks that may emerge. Whether you want to admit to the risks is another matter. If there is any likelihood of a breakdown in the employment relationship, ensure … [Read more...]
Dealing with an under-performing family member
This is one of those predictable problems which takes on additional angst because it involves a family member. As a predictable problem, its’ resolution can be proceduralised by specifically mentioning this situation in a family constitution so that there are no surprises if and when a situation like this occurs. But first things first. Why do people underperform? There are 4 reasons, 3 of which are the responsibility of family business management. The person cannot meet expectations The person does not know what is expected of them The person does not know that they are not meeting expectations The person will not meet expectations The first 3 reasons are management issues. Identifying the reason is the start point for the discussion. Are expectations too high? Are expectations too vague? Is the person’s role clear? Are the objectives set SMART? Are there regular reviews of the person’s performance? Is training or coaching provided to help the person … [Read more...]
Growth Vouchers – A New Scheme Offering Subsidised Advice to SMEs
This new scheme launched by the Government at the end of January is a £30 million fund that will enable qualifying small businesses to access expert business advice through an online Marketplace. Suitably qualified Business Advisors are registered on the Marketplace and you can choose one that is local to you, has the right expertise and has the experience. Growth Vouchers are worth up to £2000 but you will need to match fund this. You can of course spend more if required but the maximum provided by Government will be £2000. The funding is aimed at SMEs obtaining advice in five categories: managing cashflow, late payments, and negotiating finance; developing skills and taking on staff; improving leadership and management; marketing, attracting, and keeping customers; and making the most of digital technology. Vouchers can be obtained through a Government website and will be randomly issued to eligible companies. For further information and to see if you are eligible go … [Read more...]
Hastening a Staff Exit? Try a Protected Conversation
In July 2013 the law was amended with the intended effect that employers and employees would be able to enter into negotiations about the proposed termination of an employee’s employment, without such conversations being admissible in any subsequent ordinary unfair dismissal proceedings. The main difference to the situation before July is that previously there had to be a dispute, grievance, disagreement or similar before an employer could have an ‘off-the-record’ conversation (or ‘without prejudice’) now an employer can start a conversation with a view to ending a person’s employment where there has been no previous dispute or issue with that employee’s conduct, capability or the viability of the role. This sounds like good news for employers. However there are 4 things to get right to ensure the intended consequences are achieved 1. Being clear on the situation the employer faces before having this conversation. These conversations are most likely to happen for … [Read more...]
How to get individuals in different departments working together better – Part 2
As MD are you faced with the people challenge where sales is in conflict with operations, or account managers are in dispute with production or the ‘creatives’, or operations not working well with IT? It might be between 2 individual or it might be between the functions themselves. Conflict is inevitable and sometimes desirable to unleash that creative breakthrough, but does the problem seem to be getting bigger - particularly as you grow? In Part 1, I outlined two quick ways of resolving differences between two individuals or departments. Part 2 looks at a longer term solution, which takes time to embed. Part 2 looks at improving your performance management system. If appraisals happen at all, they tend to focus on the most recent activity because there is insufficient detail or memory about events 11 months ago. Inevitably there is an underlying tension around any pay increases exacerbated by difficult economic conditions over recent years. So both parties go through the … [Read more...]
