When done well, customer service can help build a strong reputation and loyal customer base. Experts share their top tips on getting it right.
More than seven out of every 10 (71%) UK SMEs believe they deliver strong customer service, a survey by Close Brothers has found. Only 5% saw their customer service as poor, while the rest (24%) saw themselves as neither strong or poor.
While having confidence in your customer service is a good thing, a true marker of whether you are excelling is how valued customers feel. Ultimately, a customer who is valued is more likely to return and even spread the word, helping you to attract new customers and generate more business leads.
Here are a handful of practical ways to provide your customers with a service that makes them feel valued.
1. Speak to customers in their voice
“There’s no better way to show you understand your customers than through your tone of voice, branding and marketing,” says Lesley Bambridge, founder of marketing consultancy We Mean Business. Bambridge has experience working with household names such as Aquafresh, Lucozade and Ferrero Rocher.
Even the best customer service can be undermined by the wrong tone of voice. The words used or how they’re expressed can say a lot about how customers perceive your attitude.
“You need to make yourself a brand that they can rely on and relate to, so don’t speak to them as if you’re owed the business,” Bambridge says.
2. Reward them
Customer loyalty programmes have long been regarded as an effective retention tactic, and not just post-purchase.
Handbag brand Mia Tui gifts new customers 500 points upon signing up, which is worth £5 off their first purchase. They then receive five points for every £1 spent thereafter.
“A scheme like this helps customers to feel like they’re part of a club,” says Mia Tui’s director and founder, Charlotte Jamme.
3. Personalise the purchasing experience
A customer’s journey shouldn’t end once they’ve checked out.
“You should personalise wherever possible and make the purchasing journey specific to them,” says Bambridge. “Consider following up with offers and bespoke deals, based on their previous purchases.”
Of course, you need to ensure you’re being GDPR-compliant and that your customers have opted in to receive future correspondence and marketing emails in the first place.
Frozen Indian food supplier Nikasu Foods UK personalises its customers’ experience by encouraging them to share recipe ideas post-purchase, which are then reshared by the company online.
4. Thank your customers
Any business hopes that its customers will keep coming back for more, but, for companies just starting out, loyal customers can be hard to acquire.
““You need to make yourself a brand that they can rely on and relate to, so don’t speak to customers as if you’re owed the business”
Lesley Bambridge, founder, We Mean Business
“One thing that I’ve done since we started, and it seems to go down really well, is to include a handwritten note with each order, thanking them,” says Ruth Oldfield, co-founder of Bolton-based Coffee & Kin, which sells compostable coffee pods, coffee beans and tea, with her sister and their partners. It doesn’t matter how many times they’ve ordered before.
“I truly believe doing this helps customers feel more connected to our family,” she says.
5. Welcome feedback
No matter how strong you believe the customer service you’re delivering to be, there is likely to be room for improvement. And welcoming feedback is key to this.
“We acknowledge and respond to all feedback we receive [from our customers], whether it’s good or bad,” says Galyna Nitsetska, founder of Empress Mimi, a lingerie subscription box.
Nitsetska’s commitment to valuing her customers is partly down to the difficulties she faced fostering loyalty and engagement for her previous business – an e-commerce website selling luxury workwear for women. Many of the purchases made through the site were one-offs, she says.
6. Be open and honest
If you have the capacity and the resources, it’s worth considering replying to any feedback in person, rather than sending a generic response.
Too many SMEs try to replicate the approach of big corporates, which can often be scripted and lack empathy, rather than thinking about how they can deliver more emotive customer experiences, says Nitsetska. You need to be open and honest with your customers, which means admitting when things have gone wrong. Keeping your apologies fresh and sincere can help win them over and encourage them to stick around.
“Being able to scale is important, but if you’re at the beginning stages [of building a business], having a loyal customer base is far more crucial, until you get to a place where scaling and atomisation becomes unavoidable,” she says.
7. Don’t take yourself too seriously
While it’s important to deal with any issues promptly and professionally, your customer service shouldn’t be seen as a robotic process. It also helps to have a sense of humour now and again, says Bambridge.
“Life’s pretty unfunny at times, so if you can do anything to lighten or brighten a customer’s day, just do it,” she says. “It’ll build huge brand affinity and make you one of the ones that stand out.”
We have a thriving and diverse community of thousands of entrepreneurs from multiple sectors, backgrounds and skill sets helping you to connect with the right people at the right time. No matter whether you’re looking to upskill, get feedback, engage with new people or simply observe, there’s something for everyone.
‘Want to learn more? Register for NatWest Business Builder to view all of their business development tools. Click HERE‘
Our MAD-HR Spotlight feature looks at a businesses most valuable asset – its employees. We also investigate the role the virus has played in turning businesses into either a hare, a tortoise or a hedgehog. Read on to learn more.
Lockdown restrictions are easing, and businesses are trying to define and adapt to their new “normal”. Business leaders are faced with the challenge of managing the colossal impact of Covid-19 on arguably their most valuable asset – their people. Keeping all the plates spinning throughout this time will have undoubtedly have taken its toll; managing your teams return to work, managing flexible furlough arrangements, building resilience, maintaining your workplace culture and engagement that you have worked so hard to build, ensuring there are enough funds to go around, the list goes on! While the world is rapidly changing around us, it is important to take the time to identify your people risks and how you plan to overcome them.
The top people risks cited pre-COVID included workforce planning, retention of key talent and development, engagement and inclusion, litigation and protecting reputation, Automation and people systems.
The reality is that COVID-19 has changed economies, social systems, and consumer behaviours. For our employees, it has changed how they work and behave, and what they value and demand. For businesses to thrive beyond lockdown and maximise the return on what is commonly their largest investment, “people costs”, it is vital to quickly identify the people risks within your business: risks which will be largely dependent on the impact of the pandemic on your operation.
Are you a hare, a tortoise or a hedgehog?
So how has Covid affected your business? Some businesses have accelerated beyond imagination (Hare), some are managing to maintain some level of income (Tortoise) and others have seen significant or total reductions in business and have gone into hibernation (Hedgehog).
Each of these types of businesses will have their people risks to navigate.
The acceleration experienced by many retailers and PPE manufacturers (Hares) during this time has placed immense pressure on staff resources and additional staff may have been brought in to meet the increased demand. This translates into increased pressure on onboarding processes, resource planning, payroll and HR functions as well as line managers upskilling new workers. Looking beyond these current challenges for those Hares, they will need to scenario plan for what happens with these recruits in the future. Will they be retained or let go? How will that be managed whilst maintaining the culture and reputation of the organisation?
In comparison, the airline industry (Hedgehog) has gone into hibernation, heavily relying on the government Job Retention Scheme or embarking on mass redundancy programmes. These tough decisions are vital to ensure the longevity of the business. Looking forward – rebuilding trust, stability, and the health and wellbeing of the remaining team must be considered in preparation for the return to the workplace.
And for the vast majority, the Tortoise. These businesses have furloughed the majority of their workforce, maintaining a low level of activity. They may need to consider reducing the workforce, reviewing the skill-mix of the employees retained and look at how they can grow their activity again.
How are you managing the return to work? It is not only the Health and Safety risks, and being COVID-secure that need to be considered, but issues may also arise relating to your employees’ readiness to return to work, the key roles and skills required first, managing caring responsibilities at home etc and so on.
So what can you do?
The first step is to determine which category you fall into – are you a Hare, Tortoise or Hedgehog? Then work through the people risks, identifying the current and future impact by asking key questions and scenario planning. This is likely to involve areas such as workforce planning, resourcing, benefits and reward schemes.
Careful planning around your people risks will help you maintain your workplace culture, your hard-earned reputation and protect your bottom line.
Hopefully you have found our MAD-HR Spotlight helpful. If you need help in identifying and planning for your people risks, gain peace of mind by speaking to a member of our friendly HR team. Contact us today.
If you would like to discuss how we can Make ADifference to your business through our provision of HR services, please get in touch on 01473 360160 or visit our contact page here.
You can view this original article and other content at Mad-hr.co.uk
In this module we’ll explore the common pitfalls of customer discovery and techniques to gain insights into the behaviours of your potential customers so you can test and validate any assumptions that you have made.
In this module you’ll explore:
What is customer discovery and why is it important?
Common pitfalls of customer discovery
Customer discovery techniques
Effective questioning
Start by downloading and saving the workbook and use it throughout the module to write notes, reflect on the key points and take time to answer the questions for your own business.
What is Customer Discovery?
In the first chapter we’re going to start by setting the scene and understanding what customer discovery actually is, and why it’s important for you business; using the customer/ client development model to demonstrate the different steps of building a repeatable, scalable business model.
Understanding your customer
In the second chapter we’re going to explore some key methods used to capture valuable insights from your customers. Throughout this chapter, continue to use your workbook to capture any important takeaways and consider what insights you need to gather from your customer segments, how you might do this and who you need to speak to.
Pitfalls of customer discovery
In the final chapter, we’re going to highlight some of the common pitfalls of customer discovery and explore some effective questioning techniques, to help you gain honest and accurate insights from your customers, to drive your business forward in the right direction.
We have a thriving and diverse community of thousands of entrepreneurs from multiple sectors, backgrounds and skill sets helping you to connect with the right people at the right time. No matter whether you’re looking to upskill, get feedback, engage with new people or simply observe, there’s something for everyone.
‘Want to learn more? Register for NatWest Business Builder to view all of their business development tools. Click HERE‘
All employees with 26 weeks or more service have the statutory right to make a flexible working request. A request for flexible working could include a request for a change to the number of hours that the employee works, a request for a change to the pattern of hours worked, a request to job share or a request to perform some or all of the work from the employee’s home.
With many staff having to work remotely for almost a year now, they may wish to continue with this way of working even when their physical workplace reopens, so they may choose to make a flexible working request to work from home. Another example could be staff who have been furloughed may decide they wish to return on reduced hours as have enjoyed having more free time to spend with family and would like an element of this to continue.
Any requests received must be dealt with in a reasonable manner and in line with company policy and the ACAS code of practice. An employer has 3 months to respond to a written flexible working request and may wish to meet with the employee in this time to discuss the request and its possible impact on the business.
Should the business decide they cannot authorise the request they must provide one of 7 prescribed reasons for declining the request which are as follows;
the burden of additional costs;
an inability to reorganise work among existing staff;
an inability to recruit additional staff;
a detrimental impact on quality;
a detrimental impact on performance;
a detrimental effect on ability to meet customer demand;
insufficient work for the periods the employee proposes to work; and
a planned structural change to the business.
Whilst these reasons are there to decline requests, they do still need to be objectively justified to avoid any potential tribunal claims, in particular those based around discrimination.
If employers are not sure about the proposed arrangement, then it could be granted on a trial basis to assess how the new working arrangement would work in practice. Alternatively, an amended arrangement could be proposed by the employer to try and find a practice that works for both parties.
Whilst there is the legal angle on flexible working as outlined above, it is also worth keeping in mind the best practice view too. The whole county has been thrown in to making new ways of working work, and this has put flexible working on the map. There is growing pressure from campaign groups to offer more flexibility from day one of employment and it is also well known that employee expectations reflect that work should fit around personal commitments, not the other way around. By considering flexible working requests and moving towards a culture that fosters flexibility, employers will reap the benefits of higher levels of engagement, motivation and happiness from their employees.
You can view this original Lovewell Blake article and others here
If you have any specific questions or would like to speak to a member of the Lovewell Blake team, get in touch via email info@lovewell-blake.co.uk
During our first First Intuition Think Tank (FITT) fortnight, we discussed the topic of Remote Onboarding, a hot topic for many employers. We were delighted to be joined by Felix Mitchell, Founder and Director at Instant Impact and Will Dempsey, Global Talent Acquisition Lead at AstraZeneca. They shared their own experiences of remote onboarding and gave insights into best practice in this area. In our second session on this topic, we were also joined by representatives from the AAT, ACCA, CIMA and ICAEW who provided an industry-specific perspective on this subject.
So much valuable content emerged in the discussions that this article summarises some of the key points. There are also links to the Employer Insight report we commissioned as well as the recordings of both sessions.
If you need any reassurance or advice on the subject of remote onboarding this is a great place to start.
Session 1
Martin Taylor and Hazel Rogers from First Intuition discussed the content of our latest employer Insight Report. The title of this is ‘Meeting the challenges of remotely onboarding new employees and bringing them into your company culture’.
We were also joined by Felix Mitchell, Founder and Director of Instant Impact. He shared his own expertise and some client case studies.
Some key points that emerged:
There is often a ‘black hole’ between when the recruitment team finish their job and the HR team start theirs. This ‘pre-boarding’ period between an accepted offer and the first day at work is actually critical for successfully integrating new team members who will be working remotely.
Social events are just as important when working remotely.
A buddy-system for new starters is invaluable for making them feel welcomed to the team and building organisational loyalty.
Informal contact with senior leaders is important for new starters and needs to be deliberately planned when everyone is working at home as they will rarely cross paths in a coffee room.
During their onboarding, new starters should be encouraged to ‘contribute as well as consume’.
We were joined by Will Dempsey, Global Talent Acquisition Lead at AstraZeneca. He talked about his experience of building a remote onboarding programme including a couple of useful toolkits.
We also invited insight specialists from AAT, ACCA, CIMA and ICAEW to provide their tips and best practice for employers.
Interesting points from this session:
It’s important to identify the potential stress points for each new joiner so that plans can be put in place to mitigate them.
Getting to know individuals is going to be crucial. This may involve some low-level personality profiling such as Myers Briggs.
Someone needs to take ownership of the onboarding process as it often falls down the hole between ‘recruitment’ and ‘induction’.
Ensure that there is communication across teams as well as within them to avoid ‘silos’ developing where staff don’t know colleagues in other departments.
‘Planned informality’ is needed to replace relationship-building communication that would happen organically and naturally in an office environment.
If you take a quick glance around the average First Intuition classroom, you’ll probably notice two things. Firstly, a room full of students all intently listening to one of our passionate tutors as they talk through complex accountancy topics. Secondly, you might also notice that around half the people in the room will be women. We’re very proud that in these times, often marked by controversy towards the lack of equal status for women, that our classrooms, with a strong representation of female students, are truly equal. This is not just in terms of student numbers but also in the success we see in their careers, progression through the qualifications and of course in exam results. This is replicated across the awarding bodies with women now accounting for 50% of registered students.
An increasing number of women are registering as students and our own centres have a virtually equal split in the male to female ratio within classrooms. So, why is it that women struggle to make it to the upper echelons of our industry? Research conducted by the FRC found the following:
46% of women reached the rank of a manager within the accountancy profession.
Yet only 17% rise to the level of partner.
However, in smaller firms (those with less than 200 employees), the proportion of women holding partner roles is just 11%.
The gender pay gap that exists within the accountancy profession sits at 21.5% (the national average is 18.4%).
Factors that may affect a woman’s progression to senior roles.
In order to explore this in more detail, we looked at research that exists about our industry and women’s progression within it. However, we also held our own webinar to discuss the real-life experiences of women in accounting. We invited a panel of female guests to join us for this special edition of our student webinar and podcast. The discussion centred around what it’s like to be a woman working in accountancy and the challenges our panel have faced. We were delighted to be joined by:
Laragh Jeanroy – Partner RSM
Christina Christoforou – Business Owner CMNC Associates
Jill Wright – Director Kirk Newsholme
Ellie Bullman – Finance Manager Wisbech Grammar School
Beatrice Scarano – Assistant Accountant BHP
Rebecca Taylor – Chelmsford Apprentice CBHC
You can listen to the recording using the link below:
One of the key factors that many experts agree hampers women’s progression to more senior roles is that statistically, women are more likely to have an additional role of carer, outside of the workplace. For many women, this is often because they have responsibilities for their own children. However, increasingly many women are now also becoming a key carer for elderly parents.
Many women returning to work after maternity leave find that their career landscape has altered. A 2019 survey by Bristol and Essex university found that only 27.8% of women were in a full-time or self-employed role in the three years after childbirth. The survey also found that in the five years after childbirth, women were two thirds less likely to be promoted. Many employers have had to adapt their HR policies to provide greater flexibility for women returning to work after starting a family and for those with other caring responsibilities. However, the loss of full-time work experience, for many women can hamper their opportunity for progression.
Conversely, a survey conducted by ‘Working Dads and Working Mums’ found that many fathers are not able to share the responsibility for childcare. Many find their requests for flexible working are often declined. The onus on women to adopt the main share of childcare can be seen quite clearly when you consider that 70% of those who have been furloughed during the Covid-19 pandemic are working mothers.
During our webinar, we discussed this issue in detail. Our panel felt on the whole that the workplace has changed in recent years. Greater flexibility is generally more widely available. It was noted that the effect of the COVID-19 pandemic has highlighted that it is possible to work outside of the standard 9 to 5 and still be an effective leader or team member.
Workplace Culture
A report in 2018 by PWC, which is based on a survey that questioned over 3000 women, highlighted the culture within workplaces as a key factor to the progression of women to more senior roles. Women questioned by the survey identified a lack of identifiable role models within an organisation as a particular problem. This meant that many of their questions about whether they could progress to a more senior level lay unanswered. There were no women carrying out these roles whilst juggling childcare or working flexibly, for example. During our recent webinar, our panel discussed this in detail. They felt that there is still a perception that in order to succeed, a woman needs to be tough and develop a hard exterior. They advocated the need for women who don’t fit this mould to be seen in more senior positions.
Inconsistency in policy across companies was also identified as a problem for women trying to progress in their careers. The PWC report cited a survey by ‘The Working Mother’ that demonstrates this. Of the 100 companies covered, policies varied widely. Some offer generous parental leave whilst having few programmes in place for career development. Mentorship may be offered at some companies who at the same time offer no flexibility in working arrangements.
Changing Mindsets
The report also highlighted that HR has a key role to play in embedding equality into the mindset of an organisation’s line managers. Stereotypes still exist and assumptions are often made about what women can achieve given their circumstances. Developing a culture and framework for progression that’s based on ability and performance is key rather than assuming barriers that may not exist. For example, assuming that a woman may not be able to attend important evening events due to family commitments may be flawed as she has support at home. At our recent webinar, our panel agreed that having a supportive line manager is a vital ingredient to a woman being successful in the workplace. Those managers with families of their own are seen as being the most understanding.
Culture is also key when you consider that 39% of the women surveyed would only put themselves forward for a promotion if they believed they met all of the required job criteria. Only 17% would put themselves forward if they met some but not all of these criteria. It is, therefore, really important that talent is recognised, nurtured and plans are in place to support this.
Networks
A woman’s network is vital to her success. The PWC report identified that women need both informal and formal mentors of both sexes to support them as they progress in their careers. This includes a supportive line manager but also informal advocates and advisors to discuss and share experiences with. Equally important, is a woman’s external network, particularly if she has caring responsibilities outside of the workplace. Our panel of qualified and trainee accountants endorsed this point wholeheartedly. Those with support from parents or family said that this had been invaluable to them. They also noted that companies need to recognise those women that don’t have external support and work with them to provide the flexibility or working arrangements they need.
How have things changed for women in accountancy?
Some of the guests from our recent webinar have worked in the accountancy profession for over twenty years. We asked them to reflect on the changes they have seen during this time. All of the qualified accountants for our panel talked about joining businesses that were filled with men in grey suits at the start of the careers. However, all agreed that this is no longer the case. Our panel highlighted that despite this they still see few women in the most senior positions. The younger members of the panel also talked about how they feel that they have to prove themselves more than some of their male counterparts. They acknowledged that there is still a struggle to be taken seriously. However, on a positive note, they felt that there weren’t any barriers to their progression.
As the field of accountancy has changed and is becoming less reliant on technical skills, our panel felt that this played to a woman’s strengths. The ability to juggle tasks, being an effective communicator and being empathetic have become important skills within the workplace. However, our panel all agreed that the more emotional nature of women is often treated as a negative within an organisation. Many felt that within their working role, they’d had to play down these characteristics.
One of the key points that emerged concerned the return of women to the workplace. Our panel argued that taking time out to care for young children should not be seen as a negative. Employers could do more to encourage qualified women back to the workplace and support them in their steps to return.
Women at First Intuition
As an organisation, we have a strong representation of women at all levels. In particular, we are really proud of the number of women we have in senior leadership positions. Across the whole of First Intuition, we have over 25 women who hold the position of Director or Partner. Our Yorkshire centres are led by Lucy Parr, as Managing Director and in Chelmsford, Kelley O’Donovan is both an owner and Director. At our London and Reading centres, both Managing Directors are women. There is also scope for progression as many of or team who lead or manage teams are also female.
Meanwhile, a great number of our staff both male and female work part-time and flexibly. This allows members of our team to take on caring responsibilities outside of their work. Many of these staff members hold management positions enabling them to progress their careers whilst balancing other external commitments. A culture of development exists with staff able to access regular opportunities to develop their skill set and explore new areas within their existing or wider job role.
We are equally proud of our work with local schools and colleges. We promote accountancy careers and encourage all young people, regardless of their sex, to find out more about the opportunities in our industry. Our ever-popular Accountancy Academy is attended equally by young male and female students aged 16-18. We recognise that there is more that can be done and we aim to continue to challenge, raise awareness and provide fair opportunities to all in terms of recruitment and progression.
The future of women in accountancy – what can we do?
Like many businesses we are looking to see what else we can do to address the balance. In the coming months, our team will be looking at opportunities to encourage women into accountancy. We’ll work more closely with schools to encourage not just young women but people from all backgrounds to consider accountancy. Our mission is to help anyone who might be interested in our industry to explore their options. We will be investigating ways to provide the support needed to do this. We hope to achieve this by widening the work we already carry out with local schools and colleges.
Our panel of qualified and trainee accountants had some firm ideas about how women themselves can address the balance. They talked about women needing to be more confident. They encouraged young women to define their own path rather than allowing events to happen to them. They also challenged the need to have it all. Women should be able to shape and flex their careers around their external commitments. They shouldn’t feel like they have to return to the workplace to maintain progression. However, there should be plans in place to accommodate them if and when they wish to return.
Why is a good manager important? How can a new or aspiring manager develop? First Intuition Tutor and Managing Director, Ginny Bradwell, shares her experience of managing teams and how the CMI qualification can give you the skills you need to become a better manager.
What makes a good manager?
If I asked you about the best role you have had in your working life, most people would look to a time where they were working with likeminded individuals, with a shared vision of what success looked like. That vision would have been shared by a manager who inspired those around them, with strong management and leadership skills. So, it is likely that this manager created a strong culture, where people were empowered to make decisions and were supported in doing so.
If it is about the people, how do organisations know that those who are managing are the right people? For me, my first opportunity to manage came not because of any skill or talent in managing people but because I was good at my job. That led to promotion and before I knew what was happening, I was supervising a team and was responsible for the development and management of others. Therefore, spending less time doing the thing I was good at in the first place!
In my case, the role models I drew on were managers that I have experienced. Some had good habits and some less good habits. You learn from what you see and like many things you don’t start off being good!
Management and leadership: How do you get to be good?
Firstly, there is no one ‘best manager’. Of course, much has been written on this subject over many years. What is clear is that people can be trained to manage well. A relevant qualification will help aspiring managers to develop skill in this area.
The Chartered Management Institute (CMI) Diploma of Management and Leadership is a level 5 qualification aimed at those who are departmental or operational managers. Therefore, it covers elements including project management, stakeholders and reflective practice, to support managers in the development of core skills.
The CMI diploma of Principles of Management and Leadership introduces techniques and models that support working in a first-line management position.
Why do I need this?
A colleague of mine talks about those who claim to be qualified by experience, hence not being qualified! To possess a professional qualification, therefore, demonstrates that you possess the skills demanded of a chartered manager. At FI we deliver the CMI qualification using a blend of Online Live sessions and guided online study. We assess students skills through their completion of assignments. Also, the course includes our impact skills programme. This programme is a series of workshops where skills and behaviours can be practised. Therefore, this gives you the chance to learn and reflect, to try out your skills and to network with others from different sectors in your cohort.
If you would like to know more about how you can achieve chartered manager status please get in touch with us: landm@fi.co.uk
Maintaining a Team Ethos and Culture in a remote-working world.
For many employers, their ‘team spirit’ and ‘family feel’ are crucial parts of their identity. Many are concerned that this will be challenging to maintain if many staff are working predominantly remotely. We were lucky to hear from expert speakers C-J Green and Dyfrig Jenkins, plus insight from the accountancy awarding bodies.
How are people working now?
At the start of the session, Gareth ran a poll about how much different levels of staff will work from home in the coming months (October 2020 to March 2021). Here are the results of the percentage of the audience that gave each answer:
It is clear from the results that:
The vast majority of employers expect staff at all levels to be working from home at least three or four days a week.
Between 40% and 50% of employers expect that staff will be working from home all of the time.
This certainly made the purpose of the session extremely timely!
What are the reasons behind this?
After running the poll, the audience were asked for the reasons they would let staff work in the office, and we received a range of responses through the chatbox:
“We’re allowing people to work in the office if they are unable to work from home, be it the environment or IT connection. In addition, there are certain teams where they are ineffective from home so there is a requirement for them to be in the office.”
“Key office-based functions – telephone helpdesk, secure payments, IT support. Also, to support an individual’s mental health.”
“Systems dependent roles.”
“Exceptional circumstances to be agreed with the manager, printing, wellbeing, IT, customer-facing roles where essential services have to be provided.”
“Where they have a lack of space or IT to work from home. Where there are performance issues. Also just allowing people to see others for their own mental wellbeing.”
“Staff essential to maintaining the running of the office, e.g. admin team. New apprentices with their buddies, those unable to work at home. We have a third at home, a third full time in office, a third odd days. All under review depending and those wishing a break can request time in office.”
Our Speakers
This led nicely into hearing from our ‘dream team’, double-act of expert speakers Dyfrig Jenkins of YOU.DEVELOPMENT LTD and C-J Green of BraveGoose who both gave plenty of practical pointers for the listeners to implement.
In his fascinating talk Dyfrig referenced the ‘Engaging for Success’ report (link below) which highlights 4 enablers of employee engagement:
Strategic Narrative – visible and empowering leaders giving a clear narrative of where the organisation has come from and where it is going.
Engaged Managers – line mangers really make the difference by focusing their people.
Employee Voice – involve staff so that they are central to the solution.
Integrity – your values must be reflected in your day-to-day behaviours, don’t have a ‘say/do’ gap.
C-J was as inspirational as ever, some of her points really resonated with the audience:
Don’t convince yourself it’s a difficult situation. Ask yourself what’s great about it, think about what can be done differently.
Help team members identify their ‘mood hoovers’ and help them to deal with them.
Don’t spend all of your time in ‘stacked transactional output-driven meetings’. Create time for creativity and innovation.
have a proportion of ‘keep-free’ time to reflect, read, explore, learn.
Speak to at least one person (someone who gives you energy) each week with no ‘thing’ to achieve.
Connect people who wouldn’t normally have the chance to chat. Ten minutes talking to one of the senior leaders can make junior staff feel really connected.
Try ‘walk and talks’ on the phone with colleagues to give them and yourself the chance to grab some fresh air (and a break from video calls!).
An event calendar for cultural connections can give staff a sense of wider connection and gives ‘power over loneliness’.
We then welcomed additional insight from representatives from each of the min accountancy awarding bodies:
Fiona Hodgkin of ICAEW
Sharon Machado from ACCA
Trevor Robertshaw of CIMA
Anthony Clarke of the AAT
Our Session on Maintaining a Team Ethos was recorded. Please use the link below to access it:
You can watch the full discussion here
At the end of the session the audience was asked what key takeaways they had:
“One thing to explore is the notion of Airbnb experiences for your teams, one of our clients has adopted these with huge success.”
“I’m going to start making my “welfare calls” walking talks where possible and also ask each member of our management team to make contact with someone not in their team for a check-in.”
“I have just blocked out two hours of my calendar every Friday. And I have started organising a team-effort mega triathlon for Children in Need.”
“I’m going to check out those online tools (Nectar, Kazoo, Bonusly, Go Game) and save some time in my diary for planning.”
“We have already taken on 1-2-1s with staff, but making time in the diary for myself to reflect is something I will definitely do.”
Recruitment of the ‘COVID generation’ brings a new set of challenges for young adults entering the workplace, as well as for the employers hiring them. For the first time since WWII, there are massive changes to the way students study, are assessed, and in turn the skills they bring to the workplace. We believe it is important for employers to have information about these changes to ensure candidates are successful and the right recruit is hired.
Gareth invited a balanced panel of guest speakers, representing both students’ and employers’ perspectives on the topic. Exploring the impacts on the different parties involved, speakers discussed their answers to the following questions:
Questions for candidate representatives: Form the Future and Long Road Sixth Form College
1. What has the next generation of school and college leavers missed out on over the past 11 months compared to usual cohorts?
2. Which skills might these school leavers be lacking when employers encounter them?
3. What can employers do in their recruitment processes to help support these young adults to overcome some of the skills gaps and give the best impression of themselves?
Questions to the employer discussion panel: AstraZeneca, CBI, and Leeds City Council
From either your own experiences or from employers you talk to, have recent recruits already shown any skill deficits compared to normal school and college leavers?
1. Conversely, have any recent recruits shown any stronger skills since the start of the pandemic?
2. What allowances in recruitment have already been necessary to allow for these skills deficits?
3. What else can be done to plug these skills deficits when young adults join the workplace?
4. What advice would you give to employers who are currently undertaking their recruitment process?
Below are some highlight comments from the forum. You can watch the full recording of the forum by clicking the button below.
Employers should offer more virtual work experience and careers resources to help the COVID generation gain employability skills
Recruits should be considered on an individual basis as candidates will not have been impacted in the same way, this is especially true for disadvantaged students. Recruitment therefore may need a more tailored approach going forward
Students should be encouraged to think about relating their skills in interviews that have not been gained in the workplace
Employers could assist candidates by giving them ‘more scaffolding’ in applications to help students show what they are capable of. They can also give them tasks that let their natural skills shine, or give candidates a trial run
Mentoring can be beneficial for both new starters and the mentoree
Employers should not catastrophise the situation and should continue to encourage young adults into the workplace
Local employers can help schools in their area by providing career help and resources
Schools should tell all students about the apprenticeship route after school and college
Being more mindful of students needs may make the workplace more attractive, discouraging students to simply follow the university pathway
Promoting social activity in the workplace would help change the belief that university is the only way to gain those experiences
Key Comments
Candidate Representative: Anne Bailey, CEO and Co-founder of Form the Future
Anne helps young people to prepare for their careers, introducing them to different industries and jobs. Anne found that schools have had to squeeze their curriculum and cut careers resources since March 2020. For instance, Form the Future spoke to less than 5,000 students in the last year compared to the usual 20,000. Employers haven’t had the chance to go into schools let alone offer work experience; thousands of work experience placements have disappeared. Exposure to careers is too important for young people to miss out on, it’s too great a risk. Students can’t be what they can’t see.
A big impact on the COVID generation has been mental health. The opportunity to have a ‘terminal exam’ as a reflection on their progress and their futures has been swept out from under year 11’s and 13’s causing huge anxiety and uncertainty. Furthermore, part-time jobs in customer-facing, dynamic environments haven’t been available. These can be the making of young adults and a big boost to their confidence and developing self-awareness. There haven’t even been opportunities to evidence transferable skills such as teamwork through playing on a sports team, or organisational ability by holding a play.
Anne recommends that employers’ give ‘more scaffolding’ to help students better conduct themselves in interviews and stand out in a competitive job market. This includes allowing candidates to reach further back to link to examples of transferable skills. Furthermore, students should be taught how to talk about the transferable skills they have developed during the pandemic, like time management, working alone, and using online programmes. Interviews can favour extroverts and employers should give tasks and ‘work trials’ that favour the natural skills of introverts. Additionally, new starters could be paired with other young and relatable employees as mentors who can offer support.
Candidate Representative: Steve Dann, Vice President of Long Road Sixth Form College
Steve Dann, Vice President of a college of 2,500 students doing a range of level qualifications, gave insight from the perspective of the student. Steve believes the effects of the pandemic is going to ripple through the education system for several years. He states that it is likely to be younger children who are the most affected, impacting reading and writing. This is particularly the case for disadvantaged children. College students have been in the education system for most of their life and are more resilient to change. The educational impact is minimal compared to the effect on interpersonal skills.
2020’s college leavers had learned the majority of the syllabus by the time the first lockdown started. 2021′ college leavers will have had two academic years of disrupted learning, particularly in 2021. They have also missed out on the usual way of being assessed and graded through exams. This uncertainty and unfamiliarity has helped contribute to mental health problems, as well as changed the relationship between student and teacher. Teachers assess students based on their work throughout the year, meaning every piece of work is now held against them.
However, Steve does report that some benefits have come out of the changes to learning over the past year. Some students have thrived as they have gained extra hours in the day by not commuting. As well as able to work in their own time instead of around a teacher’s schedule, and generally had fewer distractions.
Steve advises that employers should not catastrophise the situation and should continue to encourage the COVID generation into the workplace. Employers should be wary about how grades are predicted in 2021 as it is still not yet confirmed how students will be assessed.
Employer Representative: Emma Wood, Talent Acquisition Partner at AstraZeneca
Emma reported that AstraZeneca has not seen any skills deficits in the young adults they are recruiting in 2021. They have seen a huge rise in applicant numbers for this round of recruitment with double the applications than usual and great feedback from virtual events they have hosted. However, she believes we will not see the full extent of the impacts of COVID-19 for a couple of years yet.
Mental health again came up as a top concern for the COVID generation. Students worry they will have nothing to show for their years of education without exams. Employers and teachers should be encouraging young adults to see the other benefits and years of hard work have brought for them. Including a strong work ethic and self-motivation that is essential in the workplace.
Emma agrees that there is going to be a considerable lack of work experience in candidates’ applications. She encourages recruits to think outside the box when discussing their skills without work experience. For example, helping someone in the community, or managing workload when studying at home.
Employer Representative: Alex Hall-Chen, Education Policy Advisor at CBI
Similar to Emma, Alex has not seen too much impact on this year’s cohort of recruits’ skills, she agrees it is likely to be more of a problem for next year. She is more concerned that the COVID generation will be lacking soft skills rather than subject knowledge. Soft skills like communication, time-management, problem-solving, and team working are what employers really look out for when recruiting. Students may also choose not to take education further due to their lost learning, which would help gap some of those missed skill bridges.
Alex advises that employers consider that no young person will have had their learning disrupted in the same way. Recruitment therefore may need a more tailored approach going forward. She also believes that new employees would benefit greatly from mentoring and peer support in place to help students adjust. Engagement with government programmes with learning on the job could be powerful in overcoming some of the issues.
Employer Representative: Tracey Greig, Employment and Skills Senior Manager at Leeds City Council
Tracey has seen a considerably larger number of students attending their virtual careers festival, implying they are thinking about employment opportunities. She says the main missing skills have been a lack of confidence and issues with resilience.
Some employers may be looking at GCSE grades instead of A-Level for comparison purposes and understanding a candidate’s capabilities. However, local employers can help schools in their area by providing career help. Including helping to put together a CV, virtual work experience, online interview preparation, and other employability skills to help young adults build a virtual portfolio. Equally, businesses can help young adults with interview preparation so that they can show the best of themselves.
This has proved invaluable for students when implemented in the past and can be great for a company’s brand identity. Employers should give students the opportunities to gain alternative skills to bring to their applications other than work experience. Tracey also argues all students should be introduced to apprenticeships, not just those who are unlikely to go to university.
Sophie at AAT comments that as a small employer, recruitment has been lower than normal with notably lower quality applicants. They are looking at adapting how they assess their new recruits accordingly, with competency interviews and tests that can assess the skills candidates might have but are not visible in a CV or interview. Employers should be prepared for gaps in CVs, recognising why it there and looking for potential. As well as taking into consideration external factors like limited access to WiFi and computers when assessing applicants. It must also be remembered that some people will never have actually been in a physical office environment.
Lucy from ICAEW points out that employers should be mindful of judgement about the COVID generation and those who have not achieved as much throughout lockdown. Sometimes just surviving is enough. It is therefore important to get to know how the candidate is as an individual. How you question students is going to be important to avoid unconscious bias.
Aleksandra from ACCA agrees with this more personal and tailored approach. It will be important going forward for employers to look at employees on an individual basis as they will suffer from differing gaps in knowledge. As well as different perceptions of work, and differing wellbeing and mental health concerns. Furthermore, younger employees and the COVID generation are tending to jump to technology for solutions rather than their accountancy training. Employers, therefore, need to think about bridging the skills gap between different ages. Inter-generational coaching can offer big benefits for both parties.
Trevor from CIMA argues that he has seen resilience in students who have been able to adapt quickly to the move to online exams with no change to pass rates. He agrees that the benefits of mentoring programmes are notable for both the mentor and mentoree.
Further Comments from the Audience
More applicants and lack of work experience
On the whole, members of the audience agree that a larger number of applicants have come in this year than usual. Not only are CVs more likely to lack work experience, but applicants are also coming from further afield. Furthermore, a large number of applicants graduated in 2020 and are now starting their career a year later than they would have done. Perhaps because they were unable to find a grad role last year.
Fewer careers events
Some employers have found they haven’t had as much interest from local schools with regards to careers events. One employer notes they normally help schools with interview and advice sessions but have done none this year. As a result, they have not seen as many school leaver applicants as yet. Schools do appear to have prioritised getting students through online learning and careers events have been pushed back. CV building and general awareness of apprenticeships and alternative routes into employment seems to be lacking still in many schools. There are however lots of insight programmes and resources available virtually to provide career information.
Skills gained
The COVID generation does have some advantages they can articulate to employers. The ability to cope with online working, study, and socialising without requiring excessive or disproportionate hand-holding and time investment from line managers. Demonstrating that they can be trusted to be efficient, effective and economical in terms of their work.
Concern for wellbeing
The audience agrees that wellbeing is a major concern as remote working can be a challenge to younger people, and often domestic arrangements may not be ideal for home working. Lack of social engagement without the office environment is cited as a major issue. Similarly, the anxiety of constant assessment and therefore the requirement for high performance on an ongoing basis is as well. However, a positive is that this form of assessment is more replicated in the workplace so maybe better for preparing students. It may open up a conversation to change the current exam system that can be an unreliable way to test performance.
Widening the disparity gap
With a move to online, digital exclusion and how some young people have limited access to computers and WiFi is likely to become a bigger problem. This will greater impact students from low SES backgrounds putting them at a further disadvantage. More widely, the impact of lost learning has been greater already for disadvantaged groups; if that isn’t explicitly accounted for in recruitment then workforce diversity may suffer.
Additional Resources
Join our upcoming FITT Forum:
Equality, Diversity, and Inclusion in the Workplace – Wednesday 5th May 2021 8.30am to 10am.
Stress awareness month – 5 ways to help staff avoid burn out whilst working from home
Lovewell Blake
With teams working remotely it can be increasingly difficult to spot the signs that a worker is suffering with stress or nearing a point of burnout. According to the Mental Health Foundation 74% of UK adults have felt so stressed at some point over the last year they felt overwhelmed or unable to cope. The following points help identify the warning signs, enabling you to take action and provide support as required.
1. Ensure they are taking breaks
With teams working remotely it’s harder for managers to identity if staff are working through lunches. It can be tempting for a worker to eat at their desk and continue with tasks rather than taking a break. Managers should encourage the team to continue taking breaks whilst working from home and remind them of the importance of these breaks. Taking a break away from work and the screen is proven to improve productivity following the break.
2. Regular calls
Having regular communication with workers is not only important for their wellbeing and the flow of communication, it also allows managers to assess workload and help a worker delegate tasks if required. These calls also allow the manager to spot any differences in the worker’s characteristics which could be a sign of stress or low mood.
3. Encourage staff to take holiday
Whilst annual leave cannot currently be used for trips abroad or weekends away it’s still important for workers to take a break away from work to rest and relax. Managers should look to encourage staff to be booking holiday to help avoid burnout. This will also help prevent a build-up of holiday impacting staffing levels and business operations once the economy and borders open up again.
4. Monitor workload / working hours
The lines between work and home life can easily become blurred whilst working from home. Workers may stay logged on later as they no longer have their commute, evening routines or social plans prompting them to leave the office. You may be able to spot if an increase in working hours through increased levels of overtime, or maybe the time of day which emails are being sent or documents are saved.
5. Signpost to support
Lockdown and adapting to working from home has been difficult for many for a number of reasons. Look to provide information signposting staff to where they can access support, such as their GP or NHS wellbeing services. Aim to create a working environment where workers feel able to speak about any concerns they may have. It may be that you look to implement a wellbeing or mental health policy so workers know how to get support should they need it.
With the threat of an impending mental health pandemic impacting the nation as a result of lockdown restrictions it is important, now more than ever, to take a proactive approach with regards to workers’ health and wellbeing. Following the tips above will help ensure your workforce stay well and continue to be productive in the coming months.
If you require assistance with managing workers and their health and wellbeing, including drafting policies or training line managers then please get in touch with the HR consultancy team.
The original article was shared by Lovewell Blake and can be viewed here
If you have any specific questions or would like to speak to a member of the Lovewell Blake team, get in touch via email info@lovewell-blake.co.uk
Last year was a mixed year for the UK M&A and private equity markets. With the announcement of the first lockdown in the spring of 2020, the country and all its dealmakers held their breath, and acquirers stepped back to see how the market and opportunities would develop.
Consequently, deal volumes and values dropped as some decided to wait, while others accepted a lower price. Yet, adapt is what we did and come the second half of 2020, the M&A and private equity market made moves back toward recovery, as news of the vaccine and the temporary easing of lockdown measures bought with it some renewed confidence. Now, in the early stages of 2021 and living in reintroduced lockdown measures, we look at the lay of the transactional landscape and notice, among other trends, the increasing interest of overseas buyers on the UK horizon. In this article, we look at the growing trend in overseas investment in and out of the UK and provide our thoughts on what to do if you are the object of overseas interest.
According to a recent LexisNexis report on UK Public M&A in 2020, of the 42 firm offers announced, 62% involved overseas bidders, including 8 of the ten deals that were valued at over £1bn each. We have observed that this growing trend in the public markets is also being mirrored in the private mid-market with a growing number of overseas to UK deals vs UK to UK.
Interest from Euro and Dollar corporate buyers and funds is due to various reasons, including Brexit and the continued impact of the COVID pandemic. We look at some of these in further detail here:
Playing to our strengths – it is unsurprising that both the impact of Brexit and COVID are dominating UK business news; however, it is also important to keep in mind the reasons the UK has been and continues to be an attractive place to do business.
• A top European economy – despite the noise surrounding Brexit, the UK is still one of the biggest economies in Europe, second to Germany. The UK continues to provide a key gateway to Europe for US and Asian purchasers. For US purchasers, there can also sometimes be an easier language and cultural fit with businesses in the UK than in other parts of Europe, increasing the attractiveness of UK businesses.
• Growth industries – whilst some markets are experiencing challenging and uncertain conditions; many sectors continue to experience growth that is likely to be sustainable. To take full advantage of this, companies need a physical presence in the UK, and overseas buyers need to acquire established local businesses to increase their footprint to benefit from that growth.
• Intellectual property (IP) – the UK is one of the major global creators of IP. In a global market, being the cheapest supplier is not sustainable in the long term. We have seen overseas buyers, particularly those from low-cost markets, look to acquire UK businesses to gain control of IP to safeguard the longevity of their own business.
Capitalising on uncertainty – we cannot ignore the turbulence caused by both the ongoing COVID restrictions, particularly in the UK, and the final severing of ties with the EU. From a UK business perspective, there have been significant winners and losers over the last 12 months. Across every sector, the focus has been on how business owners adapted their business models, cut discretionary spending and preserve profits. For acquirers, market conditions over the past couple of years have resulted in the weakened pound making UK assets more attractive to overseas buyers. COVID has led to expectations on values reducing in some situations. What this creates for strategic buyers looking to enter the UK market or expand their existing presence is an opportunity to do so at a lower cost.
Continuation of UK trade – in other instances, the UK’s departure from the EU at the end of last year has caused some overseas corporates to acquire in the UK to continue trading here with fewer restrictions. Interestingly, we are observing the reverse being true with UK businesses acquiring businesses in Europe to enable the continuation of Eurozone trade post Brexit.
Availability of cash and lower borrowing costs – the cost of debt globally is at an all-time low at present, and there is plenty of cash in financial institutions that need to be deployed. Access to cheap cash is helping to fuel acquisitions.
New work practices removing barriers – as in other sectors, technology is making the transaction easier to manage remotely and, thus, cross-border deals easier. With travel restrictions across the world, it’s now common to buy a business without visiting the site or meeting the management team face to face. In the longer term, this raises challenges for physical and cultural integration.
Interest from overseas buyers and funds has been steadily increasing since 2016’s referendum result, and we believe we can expect to see continued interest for the next 12 months. Where acquisitions are strategic and not hostile, this may provide a much-needed boost to the UK economy. Nevertheless, every potential opportunity to sell (whether to an overseas and domestic bidder) should be assessed on its individual merits. Below, we provide some of our thoughts on what business owners should consider when considering selling to an overseas buyer.
What to consider if an overseas buyer approaches your business
Businesses can often be subject to unprovoked interest from acquirers. Whether a business is actively looking to sell or not, an approach, particularly one from an overseas buyer, can often incite more questions about the future of the business than it does answers. As Corporate Finance advisors, we advise businesses looking to acquire on or off-market opportunities and businesses looking to sell. We have provided below our top 5 tips for what business owners should consider if an overseas buyer approaches them:
Understand what you want from the deal – First and foremost, it is important to have a clear idea of what is important to you and the business’ shareholders both in the deal and for the continuation of the business. This is not necessarily just about the offer price; in fact, sometimes money is of lower importance relative to other things, such as exciting growth prospects, continued employment for loyal staff or maintenance of the family name. However, the point here is that having a clear idea of what is important to you and the business in a sale will help you to identify the right offer, aid in negotiations and avoid you being blind-sided by an attractive price when there are more important things at stake.
Tax planning – almost as a natural progression from knowing what you want from the sale, it is also important to ensure you are in the best possible position from a tax perspective before sale and that you also understand the tax implications of different deal structures (e.g., assets vs share deals). If you haven’t sought advice from a tax advisor, it is recommended that you do so as there may be an opportunity to improve the tax position. They can ensure that consideration has been given to the tax implications in the sale. Any required clearances with HMRC are factored into the sale process to avoid any unnecessary hold-ups.
Are you ready to go through the process? – This may seem like an obvious question. Still, particularly in situations where you are the party being approached to sell, it can often be tempting to get swept up in considering the offer and finding out more detail before considering whether the business and you as owners are ready to enter into the process. The sales process can be lengthy, and for a prolonged period of time, both you, your fellow stakeholders and the business are under the microscope. Therefore, it is important first to consider whether you are mentally prepared to undertake the process and, secondly, if the business is in the best position to sustain detailed examination. For example, are all your records, processes and procedures up to date? Do you have a relevant and up to date financial forecast? Are there any skeletons in the closet, e.g., outstanding disputes or litigation? The level of detail an acquirer will require to complete due diligence is more than owners typically use to manage their business. Ensure that you are on the front foot when the acquirer and their advisors scratch below the surface. This is particularly relevant if you are in talks with US acquirers as their due diligence procedures are notoriously detailed.
Think twice, strike once – Building further on the point above; it is vital to ensure that the information you share with prospective buyers shows the business in the best light, is correct, accurate and up to date. Once a buyer sees it, it’s difficult for them to un-see it. Sending information that is out of date, incorrect, or overly negative or optimistic could be detrimental to the continued interest of the purchaser or your negotiating position. It is also wise to be thorough and provide both numbers and words. When preparing information, always consider:
a. What message do you want to convey? Sharing information during due diligence is still part of the sales ‘pitch’; therefore, ensure that everything you share fits into the story, e.g., if you are sharing financial information and forecasts, it can be helpful to provide supporting commentary that explains any unusual items, or assumptions made so that they can follow the narrative told by the numbers.
b. Don’t assume the purchaser has pre-existing knowledge of your business or that what is publically available is suitable.
Are they right for you? – You will spend a lot of time providing information to the potential buyer. Before you engage too deeply, you need to confirm:
a. Does their offer meet our objectives for a deal?
b. Do they have the capability and resources to deliver it?
c. Does their business fit, strategically, with ours?
d. Is the person we are speaking to the key decision-makers, or have they got delegated responsibility to deliver the deal?
This list is by no means exhaustive, and the last question may seem strange, but we have seen several situations where division heads have not got the group’s authority to act.
We also suggest that you speak with your financial advisors, who will be able to assess the approach to appropriately support and advise on how to proceed.
A recent example
We recently advised Cambridgeshire-based Comtec on their sale to French-based Euro Techno Com Group (ETC Group).
Founded in 1978, Comtec Group is one of the UK’s largest value-added distributors of telecom and IP equipment to both the carrier and enterprise markets, and a specialist in supply chain management for telecoms operators and systems vendors. It serves most major telecom operators and installers in the UK and the Middle East, including BT, Virgin Media, Sky and Ooredoo. Since its inception, the company has experienced continuous growth and has scaled through targeted acquisitions and sustained international growth. Comtec has seven offices across the UK, Oman, Qatar, the UAE and Hong Kong.
Since completing a management buy-out, the business has continued to develop. Revenues have more than doubled over the past five years to over £70m.
The acquirer, ETC Group, has operations across six countries in Europe and North America. It is regarded as a global leader in product design, procurement, supply chain management and the distribution of passive and active telecom equipment and materials with best-in-class technical and logistics solutions for communications service providers’ network deployment and maintenance. Its 2,000+ customers include major American and European cable operators and telecoms service providers, as well as large and small independent installers and sub-contractors.
The transaction provides ETC Group, which Carlyle acquired last year, a strong foothold in the fast-growing UK market. All major telecom operators and alternative networks have started a long-term deployment phase of fibre across the country to support the ever-increasing demand for high-speed connectivity. The acquisition also allows ETC Group to serve the growing IP infrastructure market for enterprise customers and further expand its offerings and expertise in data centre supply and maintenance.
You can read more detail in our press release here.
This article was written by Phil Sharpe, Corporate Finance Partner at Price Bailey. If you have been approached and would like to speak to our specialist Corporate Finance team, please contact us on the form below.
We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide, and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.
You can view this article in its original setting with Price BaileyHere
With their eyes on the prize, it’s easy for SME owners to overlook some of the outgoings that can seriously dent the bottom line. Here are eight ways to make smart savings.
1. Don’t be a supplier’s cash cow
“SMEs rarely invest in procurement training, so you have people making quite significant buying decisions without knowing anything about negotiating,” says Chris Aston of cost-management experts Expense Reduction Analysts. These staff are often not motivated or incentivised to make sure they’re getting the best value for the business, he says, which means you may well be a ‘cash cow’ to your suppliers.
“You’d be mortified to hear this,” says Aston. “You’d obviously rather have suppliers feeling that they have to work really hard for your account and that you get the best value of all their clients.”
The answer may be to bring in procurement consultants to negotiate better deals – but educating staff is a good place to start. “You have to get employees spending company money as if it was their own,” says Aston.
2. Claim capital allowance relief
“Tens of thousands of businesses could be sitting on a potentially significant tax windfall in the form of capital allowances relief,” says Mark Tighe, MD at tax specialists Catax. “It concerns the ‘intrinsic fabrication’ of a commercial property, and qualifying items typically include pipework, cabling, air-conditioning, heating, lighting, security and communications systems.”
Tighe says, in his experience, the average net tax benefit to a business is £46,000, but that nine out of 10 SMEs have never made a claim for it. Why wait? An expert firm will often tell you for free whether or not you’re eligible for tax relief.
3. Don’t waste money on pay-per-click
That’s unless you know exactly how it works. “I’ve seen companies that almost seemed addicted to it,” says Andrea Sexton, director of Andrea Sexton PR. “There’s a certain buzz that comes from seeing your brand on the first page of a Google search and above all the organic results, but when every click is going to take cash out of your bank account, it’s imperative you’re confident visitors have a very real chance of buying, and that your margins are sufficient to make the cost of the advertising worthwhile.”
While pay-per-click does work when used correctly, there are probably other basics that need taking care of first – such as making sure your website is truly reflective of what you do, says Sexton.
4. Make sure freebies are being used
Peter Fleming, director and adviser at Business Doctors, used to work for a major car manufacturer and says the company saved £90,000 a year when it got rid of free vending machines that were barely being used.
“A kettle and some tea bags were just as good for the staff,” he says.
Another top tip of his is to outsource debt collection. It can cost as little as £20 an hour, which is a fraction of what you may have to pay running up your overdraft, making late VAT payments and dealing with other cash-flow issues.
“When every click is going to take cash out of your bank account, it’s imperative you’re confident visitors have a very real chance of buying, and that your margins are sufficient to make the cost of the advertising worthwhile”
Andrea Sexton, director, Andrea Sexton PR
5. Do it for a ‘Fiverr’
“The gig economy enables small business owners to find services online at much reduced rates,” says Archna Tharani, director of the newly launched Small Business Finance School, which helps SMEs make sense of their numbers. “You can find freelancers on websites like Fiverr and People Per Hour to get jobs done quickly and cheaply – but it’s always a good idea to get recommendations, as it can sometimes be a false economy when you end up paying again to get the work done if it’s not up to scratch.”
Fiverr in particular can be a boon for those in need of low-cost visuals like logos, but even complex areas into which you might want to make a tentative foray – such as market research and SEO – may be worth a look when just £5 will buy you a short contract with someone whose feedback suggests they know what they are doing.
6. Make pension contributions through your limited company
Tharani’s second tip is that your company can make employer pension contributions for you. “The pension contributions are an allowable deduction in calculating the profit of the business,” she says. “This will lead to a saving in corporation tax.”
As a result, you get extra in your pension and the company pays less tax. “It’s a win-win,” says Tharani.
7. Find partner brands
“As an early-stage challenger telco brand, we needed to generate product awareness with UK SMEs and start-ups,” says Damian Hanson, co-founder of online phone system CircleLoop. “But we found the cost of traditional advertising channels very prohibitive. Instead, we’ve focused on developing key partnerships with businesses that target similar customers with non-competing services.”
Hanson says these mutually beneficial relationships can generate faster volume at a lower cost. CircleLoop tends to seek out two distinct types of partnership. The first is the promotional partner, such as a business that serves the same or a similar customer base and can benefit mutually from joint campaign activity. “The second is the integration partner, a business that offers complementary software-as-a-service-based products into which we can integrate our service,” says Hanson.
8. Bootstrap until you’re 100% ready to expand
The best way to not waste money when starting out is to forego the trappings usually associated with running a business (office, staff, hardware and so on) – something Barnaby Lashbrooke, founder of virtual assistant platform Time Etc, discovered too late when launching an earlier business. “I burnt through cash by hiring staff and renting office space before I needed to – a mistake I’ll never repeat,” he says.
“My advice to other SME owners is to outsource tasks, use freelancers you trust and don’t leave your home office/kitchen table until you’re really ready to expand.”
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