Press Release
Businesses cite staff absenteeism and cashflow troubles as their biggest problem
04 January 2006 - More than half of the UK’s small and medium-sized companies cite staff absenteeism and cash flow concerns as their biggest headache. These two issues are regarded as more troubling than maternity/paternity leave or IT issues according to research released today, 22 November, by leading accountants and business advisers Tenon.
A clear 50 per cent of UK businesses feel that staff sickness has an impact on their business and almost one third see it as a dangerously significant impact. The second highest concern, funding and cash flow, affects 48 per cent of UK businesses.
Surprisingly, business owner-managers did not see obligatory maternity/paternity leave as a problem despite recent legislation to assist fathers requesting paternity leave. 75 per cent of businesses felt that maternity or paternity leave had no impact on their business.
With increasing dependence on IT, it is astounding that more businesses did not rate IT issues as a greater worry. Only eight per cent felt IT issues had a significant impact on their business over the past 12 months.
The bi-annual research conducted by GfK NOP on Tenon’s behalf, questioned managing directors, financial directors, and senior directors of 500 small and medium sized businesses for analysis by the Tenon Forum, an independent think tank of entrepreneurs.
Andy Raynor, Tenon CEO, comments:
"In small to medium sized businesses, the overheads are constantly looming and there are a large number of issues that can have an impact but it is unsurprising that these two issues factor so highly. The loss of staff to sickness can really drain resources and the need to satisfy all your suppliers and subcontractors, particularly in industries where staff are paid weekly like construction, can cause great concern."
SMEs from a broad spectrum of sectors, including manufacturing, transport, communication and construction, were asked which of these issues had the greatest impact. The research was divided into regions of the country and size of business.
Interestingly, larger companies seem to have suffered more than small firms with staff sickness. In businesses with less than nine employees, 46 per cent said that staff sickness was an issue while in companies with between 200 and 499 employees, a phenomenal 62 per cent said it was a problem.
Andy Raynor continued:
"Our clients with smaller companies seem to have less trouble and we would put this down to compact organisations being able to induce increased work ethic and a stronger feeling of individual responsibility amongst employees through regular contact with the owners."
Since the last wave of research undertaken for the Tenon Forum there has been a marked decline in concern over maternity/paternity leave. In May 2005, NOP research revealed that 50 per cent of businesses had faced additional costs because of maternity, paternity or disability rights legislation.
Andy Raynor added:
"There is no way to circumvent human nature. The plain fact of having senior staff is that they have families and the business needs to accommodate that. Taking a positive attitude towards this can in fact improve the culture of the business."
Ends.
Notes to Editors
About the Tenon Forum
A regular survey of SMEs is carried out every six months for the Tenon Forum by GfK NOP. These findings, combined with the analysis by an independent think tank of entrepreneurs, form the Tenon Forum report. The Tenon Forum is an independent think tank made up of leading entrepreneurs from the UK’s small and medium sized business community. The Tenon Forum Think Tank meets to analyse issues arising from this research.
About the research
GfK NOP interviewed 500 MDs, FDs and other senior directors of small and medium businesses – firms with between 5 and 499 employees. The survey covers all business sectors across the whole of England, Scotland and Wales and the results have been weighted to provide a representative sample of the British economy.
Contact
For more information, case studies or to arrange an interview, please contact Ali Gee (0207 025 8516, email ali@3-monkeys.co.uk), Angie Moxham (0207 025 8513 angie@3-monkeys.co.uk) or Joe Winters (0207 025 8514, joe@3-monkeys.co.uk).
