Is it a benefit to your business?
After attending a seminar on ‘dispelling the myths of Auto-Enrolment’ yesterday, I began to think about the future of my business and if I would ever be happy to employ somebody. Surely it goes against all the ideals of being ‘virtual’ but there can obviously be some advantages.
After hearing the experts of Cottons Financial Planning however, I seriously don’t think it would be worth it for such a small business as myself
Obvious benefits would be;
- Employee has a vested interest in the success of your business so are more likely to promote it
- They don’t spread their time between different clients (other than yours)
- Good to brainstorm with
- Consistency means you can take a break and know somebody is there to watch over the business
Along with the benefits also goes massive disadvantages;
- Overheads of multiple office equipment & software licenses
- Holiday Pay
- Sickness Pay
- Maternity Pay
- Paying for training of new staff
And the obvious one that is or will be on everyone’s lips
- Pension obligations
At the moment, this is a real grey area but under the new Government legislation that is “Auto-Enrolment” the implications on all Companies is massive. Research done by the Pension Reform almost 10 years ago has discovered that in 10 years time from now, there will be more people in retirement than working, leaving the state pension with a deficit.
The DWP have now invested £11m in an advertising campaign to ensure everyone is aware of the legislation, there will be a huge Facebook campaign and hundreds of new staff have been recruited to ensure this is run efficiently.
If you have at least one member of staff (certain criteria are in place), please contact your IFA or Cottons FP to find out what implications this will have for your Company and what you need to do, don’t get caught out and think “oh I have plenty of time, it won’t affect me until 2016” it’s never too late to get all the facts
On the flip side, using external consultants or running a ‘virtual team’ has big advantages
- You only use people when you need them
- You only use people who are experts in their field
- No additional outlay
- Easy to co-ordinate meetings through Skype etc
To find out how to source your unique virtual team, more information on hiring a Virtual Assistant or if you need a contact at Cottons or any other IFA’s, give Joanne a call on 07928 228764