There’s not a huge amount of good news at the moment for small businesses, what with the ongoing Eurozone crisis, increasingly stringent bank lending requirements and the generally gloomy UK economy. However, there is evidence that businesses are starting to look on the bright side, showing a certain boost to business confidence. According to a survey by the recruitment agency ManPower Group, the majority of businesses are not planning to make redundancies in 2012 – great news not only for the employees themselves, but also an indication that businesses are starting to cope with cash flow and financing issues better.
Of the 900 small and medium companies interviewed, 81% indicated there would be no redundancies whatsoever in the next 6 months. Though there are still the 4% who say there will be significant cut backs, this is still a good indication of the healthier state of many of the country’s small businesses.
However, 41% said that they do not plan their workforce and have no overarching strategy, perhaps showing that it’s a case of seeing how things go – understandable in the light on a continually tumultuous economic state in the UK and Europe. There were an additional 23% that stated human resources took little or no precedence in their business strategy.
Though this could all be a sign that businesses are becoming more resilient to tough times and managing their resources better, it could also show that there have already been significant cut backs. Many companies are becoming more agile in the way they manage their work force – this makes up part of a workforce strategy, even if it’s not recognised as such.
For businesses who feel they need to make cut backs, it’s important to understand why it’s necessary. In some cases, it can be due to lack of available cash flow to pay wages – in this event, invoice finance can help. Your business can release cash tied up in unpaid customer invoices so that you can meet your wage bill at the end of the month. While it’s important to address the lack of cash flow at its core, invoice finance can give you some breathing room if you need it.