From 2012, it will be compulsory for all employers to contribute to a pension scheme for employees. All eligible workers, not already in a qualifying scheme will be automatically enrolled into the employers national pension scheme. Even though single director companies will not be affected by this new rule, their clients or suppliers may be affected, and this could have a knock-on effect on your own business.
Challenge Those Sacred Cows
For businesses who are struggling to make ends meet without bank support, it could be the final straw for many. Perhaps it’s a time to finally get radical. Challenge those sacred cows you’ve previously thought untouchable? Next year, you’ll need to find the cash from somewhere.
Do You Have the Right Staff?
Take a good look at the work needed to be done and skills required. Now map your current staff to it. I bet some staff are rushed off their feet and struggle with some of the tasks thrown at them, whilst others appear to have a comparatively easy existence. Is this the staff setup you want to keep and apply additional pension cost to?
Your ultimate target has to be for your staff cost to be as low as possible whilst having the staff at all skill levels. Both now and as the company changes in the future.
We’d be happy to perform a financial diagnostic review of your company. It would quickly identify cash that can be released and staff that can be better utilised. Contact Martyn Hodgson if you are interested.