2018 looks set to be another year of challenges for regional businesses according to business and financial advisers Grant Thornton UK LLP.
David Hillan, practice leader at Grant Thornton in Birmingham, says there are five significant issues that lie ahead for West Midlands-based businesses:
Gender Pay Gap Reporting
New regulations require all organisations with 250 employees or more to publish their gender pay gap data by 4 April 2018.
Despite early reporting being encouraged, the majority of qualifying employers still haven’t filed their figures. Whilst there are no penalties as such for failing to comply, those organisations which do not accurately publish their information are at risk of reputational damage and being publicly ‘named and shamed’.
General Data Protection Regulation (GDPR)
From 25 May 2018, all organisations handling the personal data of individuals in the UK or EU will need to meet the new General Data Protection Regulation (GDPR), introduced to give people greater control over their personal data and how it is used. Businesses must ensure they are ready to comply by the May deadline or they could face a hefty fine and, once again, damage to their reputation.
Social Mobility
Employers have a crucial role to play in social mobility and by looking at how recruitment, operational and community activities can be adapted they can help to achieve this vision. Investing in social mobility is not only the right thing to do, it enables businesses to access an otherwise hidden pool of talent alongside diverse perspectives so they can better meet the demands of the clients they serve.
Last Year, Grant Thornton was recognised as the number one employer in the UK for its action to improve social mobility in the workplace, and its work in this field will continue throughout 2018.
Deal or no deal
With the final terms under which Britain will exit the EU still unclear and ongoing political instability, it’s unlikely the uncertainty which has dominated the business environment for so long will subside in the short term. Whatever the outcome, both challenges and opportunities will inevitably arise so it’s more important than ever for local firms to plan for each likely scenario.
Trading markets, processes, supply chains and workforces all need to be considered and those businesses with the right foundations in place and the flexibility to adapt will come out as clear winners.
Interest rates and inflation
November 2017 saw the first interest rate rise for over a decade with further small increases expected next year to help bring inflation back down to its 2% target from the current six year high of 3.1%.
Although borrowing would become more expensive, interest rates are still expected to remain historically low, encouraging businesses and consumers to borrow and spend more.
David Hillan concluded: “Despite these challenges looming on the horizon, the main message we are hearing from local businesses is one of positivity. There is a feeling that although there is much that is outside their immediate control, the majority are looking at what they can do to place themselves in the best position to take their businesses forward. This resilience and willingness to adapt will be vital to achieving future success.”