eFM's Survey In The Herald & Post - 'Half Work Here'

A LUTON company’s survey has proved the answer to the old joke “how many people work here?” The answer is of course, half.

Outsource specialists eFinancial Management (eFM), based in Maxet House, Liverpool Road, conducted its Efficiency Of Employment Survey 2011 and found that employees in finance roles are spending only 55 per cent of time on the job they are paid for.

Please read the full article here:
http://www.lutontoday.co.uk/news/business/half_work_here_1_3401748

The Christmas flop

More and more figures coming in are pointing to the same story: the expected revitalisation of the retail sector over Christmas has failed to appear. Although some well known names are reporting better than expected results: most notably John Lewis and Sainsbury’s, the wider picture is one of low sales, low expectations and struggling finance.

If there is one lesson for businesses to learn from the period, it is that the expected “good times” are not ever going to come back if they just sit and wait for them. Between squeezed pockets, outrageous parking charges and of course the internet, there is little to lure shoppers to the high street and all the neon SALE signs in the world will not change the fact.

So what should these shops do? It is clear that people, despite the troubles, are spending money: John Lewis is certainly not a bargain basement store, but people want to shop there. Businesses need to look at themselves to see where the problems lie.

So for your new years’ resolution, instead of asking “when will people start coming to us”, ask “why aren’t we attracting customers?”

eFM Survey Shows Low Utilisation Rate In Full Time Employment

The eFM Efficiency Of Employment Survey 2011 reveals low staff efficiency rates with employees spending only 55% on the job


Specialist financial management company finds that permanent employees in financial management roles are spending a significant amount of time on non-core jobs, and just about half their working time doing the actual job they were employed to do. According to survey results released today by e-Financial Management, employees in finance roles are spending only 55% of their working hours on core responsibilities. The results show how counterproductive full-time employment models can be with employers paying their staff not to work efficiently or in areas not relevant to their employment.



HIGHLIGHTS

Only 1% of respondents responsible for a finance function spend 100% of their working time on their core function. The average utilisation rate for the other ninety-nine percent is 55%

98% of respondents in finance roles take a holiday annually and of these, 35% take 30 days or more off work.

54% of those in financial management roles spend at least half an hour on internet usage not connected to their job during the day.

83% of financial management specialists including Finance Managers and Finance Directors spend up to one hour on administrative duties during the day including planning diaries, booking travel, making drinks and other such activities.

59% take sick leave during the year. It is worthy to note that 1% of respondents do not take any leave during the year and have never taken any time off during their working life.

88% of respondents in finance teams spend at least half an hour a day on banter, non-core communications, emails, letters and letters. Of these 2% spend about two and a half hours on this.

88% of respondents spend up to 20 days a year on self directed learning, courses and seminar and are away from work ‘for good reason’.


Direct full-time employment has in the past, been the preferred recruitment route for many employers, but with alternative routes becoming more popular, legislation becoming more stringent to the detriment of SMEs and employees increasingly having to multitask and spend less time on core responsibilities that outline the basis of their employment, many business owners now question the efficiency of employment. More favourable productivity-based employment models will now be of critical importance especially in the current economic climate. Gary Jesson, MD of the eFM Network commented that the results confirm that eFM’s approach to providing a flexible, scalable financial management resource focused on the core activity of running the finance function is the way ahead for growing companies. ‘It allows employers to avoid complex employment legislation and gives them a cheaper and more efficient resource than employing a full time member of staff.


e-Financial Management Limited is a financial management outsourcing company that offers a wide range of expert financial management solutions on a pay – as – use basis from bookkeeping to Finance Director levels. http://www.efm.uk.com .Contact number: 0845 129 9900, 01582 5163900. For a full copy of e-FM’S Efficiency of Employment survey, please click here or email chinwe@efm.uk.com




Tags: accountant, accounting, efficiency, efm, employment, finance, finance director, survey, utilisation, utilization, More…zoomerang




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Access to finance

A better understanding of the alternatives available and the different ways in which a company can access funds, will help directors and business owners secure the facilities they need to develop their business. Bank loans and overdrafts are not the only way; additional funds can be made available through better Balance Sheet management as well as through a variety of products including invoice discounting and factoring, asset finance, even inventory finance.

One of the key mistakes made by businesses is to mismatch their requirements with the type of finance they are asking for. This is where advisers can play an important role in helping Directors and Shareholders take a more strategic approach. For example, an important point to make is that banks are more likely to see cash flow as a deciding factor in a loan request rather than property values. For a number of years there has been a move away from overdrafts. Whilst a bank overdraft can be used for anything, it is not the best way to finance items such as a capital purchase. Such a purchase suits a structured product that is controlled, which in turn means that the cost of capital is lower. This is reflected in better pricing and allows for more availability of finance.

However, the first port of call must be managing the Balance Sheet to maximise the present facilities within the business. Make sure that the business is not carrying assets or inventories that are not in use, and very definitely control the debtors to ensure that your customers are not using you as their finance providers. Be strong when negotiating payment terms with your suppliers, but once terms are agreed make sure that you keep to these.

It is a good time for business to borrow for long term investment. While there has been a demand from government for banks to do more to help business, the reality is that many businesses are paying down debt rather than taking on new loans. However, with base bank rates at an historic all-time low of 0.5%, it is possibly the best time to borrow for long term investment. The overall cost of funds is presently low and, it is felt, unlikely to rise in the next year. Therefore potentially now is the time to consider borrowing over a three to five year period.

Contribution by Richard Keighley

07845 671204

Is a strong customer in a weaker position than they appear?

In the current economic climate it is a critical part of financial management to be able to spot the warning signs that things could be going awry at one of your customers. One bad debt can be the difference to your business having a profitable year, or suffering a damaging loss.

There are various ways of spotting potential issues with customers which an experienced Financial Director will pick up. One of the first signs with regular customers is when their payment pattern, established over time, changes suddenly. A delay in payment can be a sign that things are getting difficult. In this instance, the approach to take is to pick up the phone and pursue it – quite often it will be a mislaid invoice or dissatisfaction with a delivery. Always try to resolve any issues as quickly as possible.

If a customer changes their pattern of placing orders with you, this can be a sign that not all is good in their world. If your customer’s orders suddenly triple it could be a cause for celebration… or it could be that their other suppliers have stopped delivery. Don’t be afraid to investigate.

Next there are the delaying tactics, with unnecessary queries or unjustified complaints about product quality, delivery or invoice accuracy. Establish whether there is a genuine cause for complaint and ensure that after buying your products the customer isn’t now trying to buy time. Connected to this, if your regular contacts are suddenly “unavailable” to take your calls, alarm bells should ring. Communication here is key - a company refusing to engage in a dialogue with a creditor is normally in some sort of discomfort.

Finally, take note of unexpected changes. Whilst changes in personnel could be prudent efficiency or cost-saving measures, they can also be desperate acts to stave off business failure. Changes in bank could make good business sense, or may be due to their previous bank changing their terms of business.

Contribution by Richard Keighley
07841 504 079