Keep your valued employees by giving them a stake in the business

employees employment Jul 04, 2022

The numbers of employee-owned businesses have more than doubled in a year, according to the Employee Ownership Association (EOA).

There are now more than 1,000 Employee Owned businesses in the UK, it says, compared with 500 in 2020.

As trading conditions become increasingly difficult thanks to a combination of factors, including the war in Ukraine, post-Covid supply chain disruption and the difficulty in recruiting skilled people, employers have turned to EOTs (Employee Owned Trusts) as a way of both spreading the risks in business and in keeping and rewarding staff for loyalty during the pandemic.

There are also tax benefits from turning a business into an EOT.

But there are a number of things to consider in structuring and formalising an EOT and it is important to understand exactly what a business is getting into.

The questions, according to accountants Price Bailey include:

  • What is the commercial purpose of an EOT?
  • Is it suitable for my business?
  • Who will be the controlling...
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Are there situations where process automation produces a worse result?

A shortage of candidates amid a high demand for staff has for some time been a complaint made by businesses.

The competition for suitable people has led to their offering higher starting salaries for new staff.

But the question has to be asked: how are they going about the recruitment process?

For several years now, candidates have been assessed using AI (Artificial Intelligence).

This method has become increasingly sophisticated as candidates are now being asked to answer standard interview questions in front of a camera while the software behind it notes thousands of barely perceptible changes to posture, facial expression, vocal tone and word choice.

Some companies selling AI recruitment tools even offer a reactive, AI-powered chatbot that will conduct the entire interview process.

But there have been examples of eminently qualified people being rejected at the first hurdle by these methods and in one recently-reported case and employee with a long track record of work with...

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Are you a good employer?

It may not be high on your list of priorities with Furlough ending and the struggle to survive and return to peak activity foremost in your mind.

Even if you have had to make some people redundant your reputation as an employer matters.

As your business hopefully returns to more normal levels of activity there may come a time when you will need to recruit more people, and that is going to be a challenge when there is a shortage of workers in many sectors.

While redundancy may feel like a brutal process to those on the receiving end, how it has been handled can make all the difference to your business reputation. 

Did you keep staff fully informed? Did you follow all the correct procedures? Did those affected feel that you cared about them and their concerns?

K2 explained how to do it properly in this article:

https://www.linkedin.com/pulse/planning-redundancies-after-furlough-discontinued-tony-groom/?trackingId=YDCO8nDCs6wYlCRNM2wlKw%3D%3D

But we were reminded that there...

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Is A Lack Of People With Suitable Digital Skills Affecting Your Business Future?

employment strategy Apr 01, 2021

Fewer than half of British employers believe young people are leaving full-time education with sufficient advanced digital skills, and 76% of firms think a lack of digital skills will hit their profitability.

The Learning & Work Institute also calculated that the number of young people taking IT at GCSE has gone down by 40% since 2015.

It has been predicted that the future of successful business post pandemic will be in the increasing adoption of robotics, AI and remote digital solutions such as cloud storage and video conferencing.

But is it fair for employers to employers to place responsibility on the education sector? In a fast-changing landscape, how do schools and colleges judge exactly what practical digital knowledge will be needed, especially in such a diverse sector?

There is also an argument that at least some of those skills are best learned “on the job” rather than in an exclusively academic environment.

Should employers become more hands on in working...

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Retrain to do what? The jobs of the future

employment planning Jan 28, 2020

A national government retraining scheme was proposed in July last year to help those workers whose jobs will become obsolete because of Artificial Intelligence (AI) and automation.

Whether it will materialise following the Brexit mayhem and subsequent election remains to be seen.

Research by Oxford Economics has found that 1.7 million manufacturing jobs have been lost to robots worldwide since 2000, including 400,000 in Europe, 260,000 in the US, and 550,000 in China and that a further 20 million manufacturing jobs will be obsolete by 2030 although most of these will be abroad.

There is no doubt that the future world of work, especially, but not only, in the manufacturing sector will look very different.

The drive towards aver more automation may conflict with concerns for the future of the planet and the environment but both will doubtless mean a radical rethink of economies, especially those that are dependent on consumer activity.

Demographics too will play their part as many of...

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Addressing the UK skills shortage must be high on the new Government’s to do list

Businesses’ difficulties due to the UK’s skills shortage were high on their list for prompt Government action in the run-up to last week’s General Election.

The skills shortage was said to be inhibiting SMEs’ efforts to compete in global markets, particularly in areas related to digital and new technology.

A quarterly study by the BCC (British Chambers of Commerce) published in November found that 73% of firms that attempted to take on extra workers faced recruitment difficulties in Q3, up from the 64% recorded in Q2.

The skills shortage was compounded, according to Grant Thornton, by a low take-up of the cash available to businesses from the apprenticeship levy with almost half of eligible businesses having not yet spent the money available to them for workplace training.

This week, the Evening Standard carried a letter from Andrew Harding, chief executive – management accounting, at the Chartered Institute of Management Accountants, urging the new...

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Work experience – between a rock and a hard place

employment Aug 15, 2019

Earlier this year the Federation of Small Businesses (FSB) called for compulsory work experience to be reintroduced for all children aged 14 to 16.

The Government ended schools’ obligation to provide compulsory work experience in 2012.

Since then, although many schools do still try to arrange some work experience, the responsibility for finding placements has rested largely on parents and pupils themselves.  In fact, according to the organisation Changing Education “Ofsted has identified that 75% of schools are failing to provide adequate work experience programmes”.

In 2015 the British Chambers of Commerce (BCC) questioned the wisdom of the 2012 decision, following a study of members that found that “most firms and education leaders believe secondary schools should offer work experience for under 16-year-olds”.

John Longworth, who was then the director general of the BCC, said: “Business and school leaders are clear – we won’t...

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