New Paternity Rules Come Into Effect This Month

Mothers can now transfer leave to fathers. According to Nick Clegg, we are putting an end to 'Edwardian rules that patronize women and marginalize men'. Before this rule change, new fathers have only ever been entitled to two weeks' paternity leave at the statutory rate. While some claim that the change will have no detrimental effect on employers, or very little, if it does; others realize that that this will add to the administrative burden on small firms, and 52% of businesses interviewed by the British Chambers of Commerce (BCC) believe that additional paternity leave requirements will be detrimental.

For parental leave cover, call us now on 01582 516300 or mail info@babyinterims.com. 
 
 

Banks reveal 1-IN-10 small business owners are missing important tax deadlines and payments, while nearly one-fifth have lost out on grants and tax

A recent survey of 500 small businesses by Clydesdale and Yorkshire Banks showed that 19% had missed out on tax breaks and grants, while 10% said they had made late VAT payments or missed tax return deadlines.

Some 16% were unsure of where to turn for advice on regulation, while 15% said they struggled to understand new rules."

According to Gary Lumby , director of small business banking, every penny counts for small businesses, so the cost of falling foul of red tape, can make a fundamental difference to their ability to succeed," said Gary Lumby, director of small business banking at the banks.

"In extreme cases, the lack of understanding can lead to closure. It is worrying that a significant number of small firms do not know where to turn for advice on these matters and we hope to change that for our customers."

If you are unsure of the impact of current legislation on your business, or simply want to avoid penalties from missed deadlines and payments, speak to our commercially experienced finance specialists.

e-FM have been delivering an innovative approach to financial management solutions for SME businesses for over a decade enabling clients to utilise all levels of financial management expertise on a pay - as - use basis. The company launched its Interim Recruitment business (IMTB Limited) to provide fast growth companies with immediate access to specialist Interim Managers at competitive rates. IMTB provides specialist cover for maternity/paternity leave, long-term sickness and temporary projects, and operates without geographical restrictions.

For more information about our Interim Management services, and our interim brands (BabyInterims, CharityInterims and HealthyInterims), click on the 'Interim brands' tab above.

As the holiday period starts, companies are exploring various recruitment options in anticipation of temporary surges in demand and short-term staffing gaps resulting from employees taking time off. Ironically, while business may be booming, company directors and key management personnel are taking more cost conscious decisions in response to the harsh economic climate

Direct employment has in the past, been the preferred recruitment route for many employers, but the true cost of employment is the subject of recent debate amongst many business owners and directors, especially as legislation and costs steadily increase. There are obvious and hidden costs of employment which can dramatically increase a company’s overall expenditure, and many now question their current recruitment strategies, especially as the economic environment gets even harsher.

Over time, a considerable amount of research has been conducted on the effects of outsourcing and there are claims that cost savings of up to 15% can be achieved through outsourcing of non-core activities. This basic cost advantage as well as the increase in service quality and efficiency makes outsourcing a viable option for companies trying to save costs, penetrate new markets or stay within the ambit of the law.

Admittedly, today’s dynamic business world demands more than the traditional outsourcing benefits of low cost and high levels of expertise. These are a given- a natural advantage. The issues that demand attention currently are speed/instant results, constant innovation and focus, especially in highly competitive markets where too many players are fighting for too few clients or in regulated industries or practices, where legislation demands constant education and process improvement within companies.

Even though there is a gradual change in the dynamics of client demands, especially with the more business savvy clients, many companies have commonly cited focusing on core competencies as the major driver of their outsourcing decisions. Through this process, companies are able to redirect outsourced resources toward the activities of greater value as there is now pressure on companies to deliver superior value across all levels of the organisation, both in back office and front office transactions.

These days, financial outsourcing has especially become more common as price-sensitive companies look for cheaper and more effective solutions to bridge gaps in staffing without compromising skills. There are also the peaks and troughs of the business cycle, where demand can fluctuate rapidly and to such a large extent that it is an obviously bad business decision to keep staff in full time employment in order to satisfy temporary demands in staffing. For finance especially, input is needed in various degrees during a financial year, so it makes little business sense for some companies to have a full time Finance Director, or finance controller, or even a devoted credit controller all year round. If cost management is high on your agenda, here are a few considerations you can use to evaluate the efficiency and suitability of the employment route, especially as the holiday approaches :

1. Salary – If you are considering recruiting, in addition to the gross salary, you need to consider actual recruitment fees, selection and training and development costs. You also have medical insurance, share options, bonuses, profit sharing rewards, company cars, mobile phones, staff discounts, staff entertainment, critical illness, life insurance etc. On the contractual side, there is no guarantee on the investment you make in staff and stringent employment laws protect most employees.
    
2. National Insurance- This involves not just the cost of NI, but the administrative burden and the risk of non-compliance
    
3. Pension: Pension administration is becoming the biggest red tape headache for small companies including regulatory issues, if done wrong. From 2012, it will be compulsory for employees to contribute to employee pension schemes, thereby increasing employers’ liability even further.
    
4. Benefits: There is a huge cost associated with providing and managing staff benefits including some of those mentioned in (1) above.
    
5. Overheads: These include office equipment, IT., office space, management time, consumables, liability insurance (and the cost of getting it wrong in the first place), depreciation on capital equipment and administrative overheads
    
6. Recruitment- Procurement costs, management and interviewer time, personnel administration, recruitment fees- which are on average 15-30% of gross salary.
    
7. Utilisation: A typical utilisation figure is substantially less than 100%, and in most cases may be nearer to 60%. Employee distractions include company meetings, phone calls, emails, social media, surfing, banter and talking to co-workers, refreshment breaks, self directed learning, and other activities that result in unproductive time and significantly affect the utilisation figure.
    
8. Holidays: Holidays not only cost companies money, they usually occur at the busiest time. In addition to statutory holidays, downtime also includes paternity, maternity leave, jury service and sickness leave.

There are obviously many reasons to outsource and many companies are beginning to recognise this need, and are gradually reducing the use of full-time employees to manage activities or roles that require periodic input or specialist input that could be better delivered through outsourcing. Of course, outsourcing will probably never replace every employment activity, but it is worth considering which fits where within an organisation and companies ensuring they have the right kind of resource in place, especially this season.

Our core services are:

• Baby Interims- Our Executive Maternity Cover Service

• Healthy Interims- Our Long Term Sickness Cover/ Project Support

• Charity Interims- Our 3rd Sector/ Charity/ NFP Interim Management Service (15% rebated back)
 

It has recently been reported by researchers at University Hospital Basel in Switzerland that there has been a surge in cases of EAI- a rash which leads to irritation and skin discolouration-amongst remote workers!

This condition, 'erythema ab igne', also known as laptop thigh (this is true) , or fire skin, arises as a result of exposure to heat especially among workers who use laptops for 4 hours or more. Historically, this has been associated with people who worked with intense heat such as bakers and silversmiths , or the elderly who sat close to open fires and heaters.

Modern day technology has reduced some of the associated causes but also brought with it these new issues...

Prolonged and repeated exposure would cause a marked redness and colouring of the skin. This may result in the thinning of the skin and underlying tissue, sometimes developing into lesions. Some people may complain of mild itchiness and a burning sensation but often unless a change in pigmentation is observed, it can be overlooked.

Once noticed, avoid using your laptop directly on your skin. It is easier to solve the problem if the area is only mildly affected with slight discolouration and redness. In extreme cases, where this has gone unnoticed and the condition is severe, there may be a risk of squamous cell carcinomas and a biopsy should be performed to rule out the likelihood of skin cancer.

Medical experts have warned people who use their laptops for extended periods on public transport, at home to take frequent breaks and avoid resting their laptops on bare legs.
 

As public sector cuts hit the UK, It is expected that half a million private sector jobs might be lost, according to recent research by PriceWaterhouseCoopers.

It is easy to see how the losses will come as a knock-on effect from withdrawn public contracts and reduced public spending. However, it is expected that this will result in increased flexibility on wages and working hours due to companies struggling to reduce non-core and fixed cost operations.

This increase could in turn lead to a rise in outsourcing activities, contract opportunities and part-time jobs, and is likely to occur in spite of the current fiscal squeeze, as has been the case in previous situations.

There is hope yet, I think for the interim job market.