Businesses have had to endure the ongoing challenges of the UK economy as global turmoil increases the pressures faced.
One area in which this seems to be manifesting is regarding the ability to hire more people, with many businesses struggling to find the funds to keep teams growing.
It is worth considering whether your team needs to grow in order for your business to do the same or if there may be other paths to growth.
Can businesses afford to employ people?
Across the board, it seems that businesses are avoiding taking on new team members as the number of vacancies is continuing to decline.
While unemployment only decreased by 0.1 per cent between April and June, the Office for National Statistics (ONS) determined that there were 0.9 per cent fewer job vacancies in the same period.
The drop affects all businesses, but those with fewer than ten employees have shown the greatest hesitation to take on new employees.
There is a chance that if growth plans for these smaller entities were tied to expanding the workforce, then they will no longer manifest as planned and the business could miss out on its full potential.
Zero-hours contracts have historically plugged some of the gaps, but the upcoming changes may reduce the effectiveness of the approach, as it is believed these contracts could cost employers between £350 million and £2.9 billion.
As such, a new way of facilitating business growth must be discovered outside of taking on new team members.
How do businesses grow without hiring new people?
Understanding how to allocate the funds available more effectively is the most vital part of business growth.
Data indicates that many businesses are already choosing to invest more in the people they have on the team, rather than bringing in fresh faces.
This has seen a 3.5 per cent increase in regular earnings, which, while the slowest rate of growth in six years, could suggest that better compensation might be the solution for businesses trying to do more with fewer people.
Employment decisions ultimately centre on the presence of talent within the team and a part of this is knowing when seeking external support could be more beneficial.
Outsourcing accounting to a professional can free up a business from the need to bring on extra staff while also providing the kind of financial versatility only accessible through expert support.
Our team can review your position and assist you with the budgets you need to keep your business growing.
If you are considering ways of supporting your team, we can explore different compensation options such as salary sacrifice and Benefits in Kind.
Many options may be more tax efficient than direct pay, so are worth considering as part of a wider strategy to keep your tax exposure under control and your overall costs down.
Should there be space in the budget to bring on a new member of the team, it is worth remembering that the competitive job market might present the opportunity to secure the services of a talented individual who is ready to apply themselves for the betterment of your business.
Understanding your financial position is the key to growth, so get in touch with our team today.