The UK job market has not been in the best shape recently. Many experts are now seeing this sector of the UK economy as entering a delicate period – firms are looking to hold onto staff in order to keep skill levels high, despite low output and demand. However, if output doesn’t pick up, then it looks like redundancies might start to ramp up, despite lower redundancy figures for 2012.
The Chartered Institute of Personnel and Development (CIPD) has shown that more than 1/3 of private sector firms have maintained their staffing at a higher level than the current level of output requires. This is fuelled by the desire to maintain the skills base of their workforce, despite not being able to make full use of all their manpower due to low sales or orders. Fewer firms are looking to make redundancies in Q3 of 2012 compared to three months ago – encouraging news, but something that could be lending false hope to many.
In fact, if business fails to pick up, 62% of private sector businesses interviewed said they would have to make staff redundant in the coming year. This indicates that if the economy continues to stagnate, unemployment levels could increase even further. Though businesses at the moment are mostly content to hang onto their staff – showing that they value the skills they bring to the workplace – it’s unlikely that they’ll be able to maintain this unless business starts to get back on track.
If your business needs a way to reinvigorate your daily running, then it might be worth looking into invoice finance. Factoring and invoice discounting can unlock money tied up in unpaid invoices, giving you access to up to 90% of their value within 24 hours, with the remainder paid when the customer clears their debt. This could allow you to have the necessary cash flow for growth, helping your business make the most of your staff’s skills.