How to Boost Your Bottom Line with Charitable Giving

Smaller businesses are able to enhance their bottom line courtesy of charitable donations. But only 20 per cent are actually giving regularly. Here’s why as a business, you should be seriously considering donating a proportion of your turnover to charity.

Research has revealed that the more a smaller business donates to charity, the better its business performance.

On average, small to medium sized enterprises give 1.8 per cent of their turnover to charity. That equates to £32,000 per year. Businesses that donate more than 0.5 per cent of their turnover are 20 per cent more likely to see a boost in profits. They are also twice as likely to enjoy a lift in reputation, and 50 per cent more likely to see and improvement in staff retention and recruitment.

In general, 67 per cent of businesses who regularly make charitable donations reported a positive impact on profitability. The trouble is, a lot of businesses are not aware of the advantages of charitable giving.

The research has been released on the back of the launch of a new giving platform called Work for Good. The platform makes it easier for businesses to make donations to good causes in such a way that proves beneficial to both the charity and the business.

These days there is a much increased expectation from customers to know that the companies they choose to do business with are actively making a difference and showing that they are socially responsible and community minded.

Work for Good empowers businesses to ‘give to grow’. 37 per cent of small to medium sized businesses claim that charitable giving has assisted them in attracting new clients.

Work for Good has been created to build giving into a day to day working routine. The platform makes it easy to give in whatever way suits a business best. All the legal and administrative burden is taken care of and Work for Good helps givers shout about the good they are doing. This helps businesses connect with clients, inspire their workforce and strengthen their brand. As a member you get to display the Work for Good mark which instantly demonstrates your values.

If you are unsure as to how charitable giving could benefit your business in any sense, including from a tax or reputation perspective, why not discuss it with your local bookkeepers?

How Technology can Help You Grow Your Business

Growth is one of the key objectives for most businesses, and without a doubt, one of the most effective methods of achieving growth is through the use of technology. Here we take a look at three great technology innovations that could really help take your business to the next level.

The Cloud

Most businesses have adopted cloud technology in some form or another. If you are using Dropbox, Google Drive, Office 365 or anything that allows you to logon and work any time any place via an internet connection, then you are already using the cloud.

But what about the wider possibilities? The cloud allows meetings to be held with clients and partners around the world without having to leave the office. Not only can you talk, you can have real time eye-contact, share and collaborate on documents and other types of files and even record a copy of the meeting to pass to absent delegates.

Interviews can be conducted via video conferencing and training can be provided via live streaming cameras, which means you can expand your workforce and your company outside of global perimeters without major investment.

The cloud is a major player in the realms of business growth, so it is well worth talking to your IT providers to ensure you are making full use of its benefits.

Customer Relationship Management

When was the last time you were in touch with any one of your clients? What was the last conversation you had with a prospect? Who is buying what and who could you cross or upsell to? Without this information at its fingertips, a business is never going to grow.

If you are still toiling over a basic spreadsheet or relying on file notes or diary entries to keep up with the current position with your clients and prospects, you are seriously missing out on what modern technology has to offer.

These days, businesses with their finger on the pulse of growth opportunities are all investing in customer relationship management (CRM) software. These are powerful database driven platforms that bring together all the information and data needed to keep a handle on what is happening at any given moment with clients, contacts, partners and prospects.

CRM systems such as SalesForce, Pipedrive, Zoho, Insightly and HubSpot vary in cost and features but all offer the same advantage of making it straightforward to manage your client contact programme. You’ll be able to see at a glance where opportunities lie and make sure that clients are adequately taken care of and prospects nurtured. Most systems will track calls, emails and progress automatically so that admin time is cut down. Some will allow you to assign tasks and attach files, schedule emails and track email opens and clicks.

With a CRM system, the power to grow your business is literally at your fingertips! 

Business Intelligence

How much money do you have in your bank account right now at this very minute? What is going out tomorrow? What is coming in? Who owes what? How much are you spending on IT support, stationery, postage, transport?

If you need to make an important business decision, you will find yourself in a risky position unless you have all the relevant and up to date information to hand. The trouble is, much of the information you need to access will be segregated across different departments and may take the form of reports that are not up to date.

Business intelligence platforms however bring all of this information together into one place, funnelling everything from sales and marketing, accounts and finance and operations and admin into an easy to navigate format that is totally up to date.

If you are not sure where to go next with your business growth plan, why not talk to your local bookkeepers? They will be able to steer you towards the innovations and contacts who could really help you excel.

Shared Parental Leave Campaign Follows Poor Take Up

The Government has launched a campaign to promote shared parental leave after statistics have revealed that very few couples are making use of the programme.

Figures published by the Department for Business, Energy and Industrial Strategy show that of the 285,000 couples eligible, only 2 per cent have actually used shared parental leave since it was introduced in 2015.

The campaign is being backed by a £1.5 million investment with the objective of encouraging couples to ‘Share the joy’ of parenting. Backed by social media and digital advertising together with advertisements along commuter routes, it will hinge on providing information and guidance on how the scheme works. A new shared parental leave website has also been launched.

Shared parental leave allows mothers to terminate their maternity leave and pay at a certain date so that their partner can make use of the balance of leave that has not been taken. Up to 50 weeks of leave can be shared, or up to six months’ taken off work together.

Business minister Andrew Griffiths said: “Shared parental leave gives choice to families. Dads and partners don’t have to miss out on their baby’s first step, word or giggle – they can share the childcare, and share the joy.

“Employers can reap the benefits too. We know that flexibility in work is proven to create happier, more loyal and more productive workforces.

“Providing truly flexible employment options is a key part of the Industrial Strategy, the Government’s long-term plan to build a Britain fit for the future by helping businesses create better, higher-paying jobs in every part of the UK.”

A 2017 survey by charity Working Families revealed that 25 per cent of fathers had never heard of shared parental leave. Sarah Jackson, chief executive of the charity, explained that a lot of fathers would be interested in using the scheme, but were either not eligible for it or decided not to use it as they would only be given the minimum statutory rate of £140.98 per week.

“The Government’s drive to raise awareness amongst parents about the scheme is a step in the right direction. Many fathers are excluded from the scheme because they haven’t been in their job for long enough. The Government should make shared parental leave a day one right for fathers in the same way that maternity leave is for mothers and extend the scheme to self-employed parents,” she said.

“Of those fathers who said they wouldn’t use the scheme, more than a third said this was because they couldn’t afford to. Those employers that can afford to should go beyond the minimum pay for share parental leave.

“But if the Government is serious about equality at work and tackling the gender pay gap, it should consider also introducing a properly paid, standalone period of extended paternity leave for fathers.”

If you are unsure as to how shared parental leave works or are interested in making the scheme more attractive to your employees, why not consult with your bookkeepers? They will be able to explain how shared parental leave works, the benefits to your workforce and how it will pan out financially for you.

Working Hours and Salary Main Drivers for Career Change

A poll undertaken by the Oxford Open Learning Trust has revealed that working hours are just as important as salary when it comes to seeking a new job.

The poll of 2,000 adults explored the main motivations that drive people to career change. It found that money was, predictably, the main reason for job moves, accounting for 64 per cent. However, 55 per cent said that working hours were important. This figure indicates that people are now more likely to seek a healthy work-life balance and will therefore look for roles that fit in with their lifestyles.

Enjoyment of a role was also considered important. Whilst the money side of things is always going to be a key consideration for job seekers, 50 per cent are clear that they would be prepared to put their personal interests and enjoyment first.

Job security was cited by 40 per cent of respondents as a key consideration when seeking a new position, and working environment by 37 per cent.

Generally, the poll revealed that 28 per cent of British workers are looking to change jobs within the next ten years, whilst 13 per cent are potentially considering new careers within the next four years. Three in five are prepared to retrain to land the career that fits with their key objectives.

Courses director and founder of the Oxford Open Learning Trust Dr Nick Smith says: “People often see the start of the year as a good opportunity to start afresh and plan for a brighter future. Moving jobs is one way of achieving a lifestyle shift and it’s really interesting to see the main reasons why people are looking to make such changes.

“While money is always going to be an important consideration, it is pleasing to see that the nation is looking after their own interests too, with things like location and enjoyment listed highly.”

If you are recruiting new staff, it is wise to take the results of this poll into consideration, bearing in mind the importance placed on various factors by job seekers.

Job Changes no Longer Seen as Negative by Employers

Traditionally it has been considered by employers that holding a position long term is something to be looked upon as positive in terms of a CV.

However, with today’s job market having become more fluid, it appears that the old concept of a ‘career for life’ could well be somewhat outdated.

Edology, a leading e-learning organisation, undertook a survey of 1,000 employers with a view to discovering whether there has been a shift in attitude around the subject of job changes. The survey revealed that, in actual fact, job hopping could be classed as a good career move with 82 per cent of employers stating that they would be willing to take someone on who had switched jobs within the last six months.

Perceptions Around Regular Job Changes have Shifted

This would suggest that general perceptions around regular job changes have shifted from negative to positive. In fact, 51 per cent of employers surveyed believed that people switching careers tended to have a higher degree of motivation.

Founder and CEO of Target Internet, Daniel Rowles, is in agreement, saying, “The fresh perspective of someone from a totally different industry often ends up providing a greater benefit than the relevant skills of someone who’s done the advertised role before.

“In this age of exponential change, every candidate will require ongoing training to stay up-to-speed. With careerists arguably losing their skills advantage, and job roles becoming more creative and strategic, career changers are starting to look like the smartest hires.”

63 per cent of employers believe that changing jobs could be beneficial to a career and 53 per cent say it helps aid personal development.

Dr Jeremy C Bradley, executive director at Edology, has this to say: “Until recently, job hopping was considered career suicide, but things have changed. As job longevity becomes a thing of the past, employers and recruiters are beginning to have a different outlook on job hopping, as our research confirms.”

So, if as an employer you have been concerned about taking someone on who has a career history of job hopping, or who has recently switched roles, it could be time to look on it as a positive rather than a negative.

Tax Exempt Bonuses Could Boost Staff Morale

A survey of 1,500 UK workers and business leaders has revealed that an increasing number of UK businesses would like to regularly reward their staff with bonuses, but feel they are being held back by budgets.

The survey, conducted by One4all Rewards with a view to raising awareness of HMRCs Trivial Benefits Allowance, uncovered that 83 per cent of British business leaders would like to give their employees regular bonuses and rewards so as to boost productivity, morale, loyalty and motivation. However, 53 per cent of them said they do not currently do so because the business does not have sufficient budget available.

Businesses can now benefit from HMRC tax exemptions

In April 2016, HMRC altered the workplace benefits rules, allowing businesses to benefit from the exemption and reducing National Insurance contribution and tax charges. However, 90 per cent of businesses are missing out.

With 48 per cent of workers saying that their morale would be lifted by receiving even just a small bonus, 35 per cent stating that they would feel more loyal and 31 per cent saying they would be better motivated, it really does demonstrate the importance for employers of making use of these tax exempt bonuses. In addition, the fact that 62 per cent of workers reported that rewards such as gift vouchers or experiences would have a significant impact upon their attitude towards work, certainly backs this up.

Bonuses and rewards appreciated by staff

The survey also revealed that 47 per cent of UK workers would appreciate a non-performance related reward or bonus at Christmas and 32 per cent would like to receive a bonus following a busy time at work. 26 per cent would appreciate a birthday bonus.

Alan Smith is UK managing director of One4all Rewards. He comments, “There is lots of potential for British businesses to offer non-performance related benefits to their staff under the latest HMRC changes to the workplace benefits rule.

“The changes to the workplace benefits rule have been introduced to help businesses similar to those we surveyed, who have limited budgets to reward their employees.

“We can see from the research that only a small proportion of businesses are currently making use of the tax exemption on trivial benefits, however, 11 per cent of UK bosses are intending to make use of the tax exemption before the end of their tax year.”

If you are considering giving your workforce bonuses or rewards, be sure to discuss it with your bookkeepers to ensure you are keeping within the tax exempt limits.

How to Protect Yourself as a Director or Company Officer

Under the Companies Act 2006, directors and company officers are subject to over 200 areas of statutory liability. A breach of any legislation has the potential to lead to civil or even criminal charges. Directors and officers of companies can be held personally liable for these charges and could face significant fines and possible custodial sentences.

Regulatory compliance is an ever-growing challenge, and the powers of regulatory bodies are becoming increasingly onerous. Risks are also apparent in the workplace in the form of employees who are these days well aware of their rights and do not hold back in taking action where they feel those rights have been violated.

Keeping your head above water amidst all this is an exceptional challenge for any business owner, particularly when the business is a smaller one that doesn’t have its own in-house legal department.

Personal Risks for Company Directors and Officers

Directors and officers face a raft of personal risks. These include health and safety failings; employee claims; data protection breaches; advertising standards violations and company activity irregularities.

In some cases, convicted directors can face sentences of between two and ten years as well as being banned from running a company for up to 15 years.

Thankfully there is a way to protect yourself from these risks if you are a company director or officer.

How to Protect Yourself from Personal Risk as a Company Director or Officer

If an investigation is launched against your company you will obviously need to put up a solid defence. The legal costs involved in this can run into tens or hundreds of thousands of pounds, even if the outcome is favourable. This will obviously put a significant strain on both company and personal finances.

The way to protect against this risk is by taking out a Directors and Officers Liability insurance policy, also known as D&O insurance.

These policies take away the financial risks faced by directors and officers, protecting them in the event of claims or allegations needing to be defended.

D&O insurance provides cover for key officers and directors of a business, protecting them by covering legal defence costs in cases of regulatory inquiries; environmental mismanagement investigations; employee claims; licensing breach actions, corporate manslaughter allegations and more.

Most directors and officers taking up new positions have an expectation for such cover to be in place to protect them in their new role. This cover is not expensive and premiums are based on a sliding scale according to turnover.

If you think in terms of the potential costs involved in NOT having the cover, it has to be considered a wise move.