As a business owner, one of the biggest challenges you face is managing your time effectively. With the constant changes in the UK economy, it's becoming increasingly difficult to keep up while also ensuring your business runs smoothly.
The rise in maximum wages has added to this challenge, making it hard to hire the right in-house talent while keeping costs low. However, there is a solution - outsourcing. In this blog post, we will explore how outsourcing can help your business tackle time management and hidden resource drains.
The UK Economy and Its Impact on Businesses
The UK economy has been facing several challenges in recent years, from Brexit to the COVID-19 pandemic. These events have caused a decrease in consumer spending, increased business uncertainty, and decreased productivity. The UK inflation rate was 4% per cent in December 2023, up from 3.9% in the previous month, as a result, businesses need to ensure that they are using their time effectively and focusing on their core business operations. Outsourcing is a practical solution that can help businesses achieve this by providing access to skilled professionals in various fields, such as marketing, accounting, and IT, allowing business owners to focus on their core competencies.
The Increase in Minimum Wages
Another challenge businesses face is the increase in the minimum wage, which has led to increased labour costs. This increase can make it harder for businesses to hire and retain the right in-house talent. Additionally, the high cost of labour can lead to cash flow problems and hinder business growth. Outsourcing can help businesses reduce labour costs by providing access to a skilled workforce at a lower cost.
The Problem with Hiring the Right In-House Talent
Hiring in-house talent can be a time-consuming process, and it can be difficult to find the right people for the job. A report by Glassdoor found that the average job opening in the UK takes 27.8 days to fill. Even when businesses do find the right people, they may not be able to afford to pay them the wages they deserve. This can result in businesses hiring less experienced and less qualified employees, which can lead to decreased productivity and lower profits.
Recruitment Costs for In-House Bookkeepers
According to research by the Association of Accounting Technicians (AAT), the average salary for a bookkeeper in the UK is around £25,000 per year. When you factor in additional costs such as National Insurance, pension contributions, and holiday pay, the cost of hiring an in-house bookkeeper can quickly add up. Outsourcing bookkeeping services can provide you with cost savings while ensuring accurate and timely financial reporting.
The Hidden Drain on Resources
One of the biggest problems with time management is the hidden drain on resources. Many businesses don't realize how much time is being wasted on non-essential tasks until it's too late. A study by Rescue Time found that the average employee spends 2 hours and 48 minutes per day on non-work-related activities. This can lead to decreased productivity and lower profits, as well as increased stress and burnout for employees.
Let's look at some facts and figures
According to a recent study, outsourcing non-core business functions can reduce operational costs by up to 60%, while also increasing productivity by up to 40%. This means that businesses can save a significant amount of money and time by outsourcing tasks that are not part of their core competencies.
Outsourcing is the key to unlocking your business's full potential. By outsourcing tasks such as accounting, marketing, and customer service, businesses can increase efficiency and productivity, reduce overhead costs, access expert services, and enjoy flexibility and scalability. Don't let the financial burden of hiring additional staff and investing in equipment hold your business back. Consider outsourcing today and take your business to the next level.
Book a No obligation call to know more.
Comments