< Previous40 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk OMS Q&A To what extent has the ongoing pandemic impacted the training and consultancy services you offer? During the pandemic we delivered virtual training using Zoom and MS Teams. We now offer both virtual and face-to-face training in our COVID- secure premises, where all the training rooms have forced ventilation and air- conditioning built in, and at customer’s premises. We have seen a big increase in the volume of training due to organisations we work with playing catch-up in developing their staff. The consultancy side of the business was very busy, during and since the pandemic, initially getting our customer’s premises COVID-secure and now ensuring that our customers have the support they need to meet increased demands. Will the future of training be completely digital, or will there always be a place for face-to-face? Many of our clients expect their organisations to focus on growth in 2021, and so they are focusing on building critical skills and competencies. We are working with several clients who need to close the skills gap which has been widened by the pandemic and they have identified the best way to do this is back to face-to-face training. Whilst digital training was clearly an imperative during lockdown, we are increasingly finding that our clients prefer the face-to-face approach, for the majority of their learning needs. Whilst there will always be a place for virtual delivery, or top up training via E- Learning, or as part of a blended offering, our preference, and that of most of our clients, is to move back to the classroom and to our practical areas, to maximise the learner experience and ultimately their return on investment. Specialist expertise can benefit any organisation. How do you tailor said expertise to each company? OMS realise that all organisations are unique and one of our strengths is listening to our customers and then developing a solution that works well for them. With training, we look at the change in behaviour required to achieve their goals and track back to identify what training needs to be given, and then the type of delivery, to facilitate the required level of competency. With consultancy, we look at how the organisation works and develop processes around the activities they carry out, so that they achieve their purpose and are simple, sensible solutions to use and maintain. What are the main HR issues facing companies in 2021? The main challenge at present is the real labour shortage out there - our clients in certain sectors are struggling to fill key vacancies. In addition to this, employers are having to adapt to the new normal and managing a long-term hybrid/remote business model and the challenges that this creates. Some of our Q&A OMS We spoke to Coalville-based training specialist, OMS, about the impact of the pandemic, what the future holds for training, and advice for businesses deciding between upskilling and redundancies. 40-41.qxp_Layout 1 30/09/2021 12:55 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 41 OMS Q&A clients are struggling to adapt to the new expectations of their employees, versus what is achievable for them and trying to ensure that remote working does not negatively impact on their productivity. Allied to that, our clients are more focused than ever on providing support to their employees in relation to the mental and emotional impact that the lockdowns may have produced, as well as their ongoing anxieties and concerns about the future. According to government statistics, key workers in the UK have consistently reported higher levels of depressive and anxiety symptoms, than non-key workers. Those organisations wishing to become an employer of choice, in an increasingly competitive market, will need to focus on building a culture that supports employees and embraces mental wellbeing at its core. Finally, Diversity and Inclusion has become an imperative in 2021, with many employees citing this as an important factor when looking for a new job. With the highly impactive #MeToo and Black Lives Matter movements, in particular, companies are re-designing and updating their policies and practices to emphasise Diversity and Inclusion. What are the advantages of training and reskilling existing staff verses hiring new staff? Allowing employees to upskill and helping them to develop their career paths has several advantages compared to recruiting externally. From a financial point of view, it is clearly expensive to recruit from scratch; from the loss of productivity, the cost of advertising, and the time-consuming interview and lengthy on-boarding processes. With the job market booming, employers should recognise that to prevent employees from moving on, they need to invest in their employees. This will not only increase their employees’ value to the company but also send them the message that they are worth the investment and that they have a place in the company’s future, aiding retention and enhancing morale. To find out more about OMS, visit www.oms.uk.com or call 01530 833 533. @OMS - Training and Compliance @OMStraining @OMS_training 40-41.qxp_Layout 1 30/09/2021 12:55 Page 242 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Increased National Insurance and tax rates on Dividends: How will the changes affect you? By Jennie Brown, Tax Partner at Streets Chartered Accountants The government has announced tax changes to fund £12 billion a year to be spent on the NHS and social care across the UK. What are the new rules and when will they come into effect? National Insurance contributions (NICs) will increase by 1.25% for one year only for employees, employers and the self- employed from April 2022. This will cover both Class 1 (employee and employer), Class 1A and 1B and Class 4 (self- employed) NICs. Those above State Pension Age are not impacted by the April 2022 changes. From April 2023, a new ringfenced Health and Social Care Levy of 1.25% will be introduced which will apply to those who pay Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs and will also be extended to those over State Pension age who are in work. When the new levy comes into effect, National Insurance rates will revert back to current levels. The levy will also apply to individuals What can you do if you are an employer or employee? For employees who are not shareholders, your employer may provide a benefits package that includes salary sacrifice and could enable you to also alter the way in which you are remunerated, which may be sensible to explore and ensure you have fully considered. As a result of this change, together with businesses having to assess their workforce with regards to aspects such as hybrid working, it may well be that employers address their remuneration offering. Company cars for example may be less attractive but putting in place a well-managed pension scheme may be more attractive and enable employees greater flexibility over how they take their remuneration. What can you do if you are a business owner or self employed? If you operate your own business, you may want to consider how you are remunerated moving forwards. For many business owners a combination of salary and dividends has been an effective way to pay themselves, however in recent years the tax rate on dividends has increased, the 10% tax credit removed above State Pension age with employment income or profits from self- employment above £9,568. The levy will be administered by HMRC and collected through the current reporting and collection procedures for NICs; Pay As You Earn and Income Tax Self- Assessment. Like National Insurance, levy contributions will apply UK-wide, people will pay the same in England, Scotland, Wales and Northern Ireland. From 2023-24, levy contributions will need to appear as a separate item on payslips. Where possible a generic message should be included in payslips for the next tax year (2022-23). More information on payslip requirements will be available in due course. In addition to the new Health and Social Care Tax, the government will also increase by 1.25%, from April 2022, the rate of income tax which is paid by people who receive dividend income from shares. As an employee how much more tax will you pay? To give an indication of what this means in terms of the additional tax payable, the increase will see an employee on £20,000 a year pay an extra £130, an employee on £50,000 will pay an extra £505 and an individual on £100,000 pay an extra £1,130. 42-43.qxp_Layout 1 30/09/2021 12:57 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 43 TAX and therefore the changes have bridged the gap between income tax rates on salary and dividends. The tax saving of dividends over time, has gradually been eroded. Not only this but many business owners who have opted for a lower salary and higher dividends, will have received support during the pandemic based on their salary alone, as the furlough support provided did not include dividend income. Dividends are also paid from profits that have already suffered corporation tax, unlike salary, and therefore the expense is not a tax- deductible expense for the business. In addition, other practicalities such as mortgage applications have in the past been more difficult to apply for with lower salary and higher dividend income, together with the requirement to make lump sum payments and payments on account where high levels of dividend income are paid, in contrast to the monthly collection of tax via PAYE for salary, which may be seen as an easier way to manage personal cashflow. The recent increase to the taxation on dividends may therefore see many business owners want to take stock of how they are remunerated. It may be where profits are being extracted above living expenditure requirements, instead the excess is used to make Pension Contributions, a tax-deductible expense and providing for the future in an Inheritance Tax efficient way. There are many options that business owners may now be well placed consider, taking into account the position for both the business and their personal circumstances, to assess the optimum way of being remunerated. Where there are a number of shareholders with different personal circumstances, naturally, having the ability to be remunerated in the most effective way is important. Whilst shareholders may have the same common goal and ambitions for the business, it is critical that as individuals, they can be remunerated in such a way as to optimise their personal position and this may give rise to planning surrounding a variation to share rights concerning dividends. For companies and sole-traders, really making sure you are aware of the expenditure you are able to offset against your income will be even more important. Having good records to ensure tax relief is claimed and understanding the rules around Capital Allowances and the new Super- Deduction is important to ensure you do not miss out. If you are a business looking at the shareholders remuneration or looking at the offering you provide your employees or if you are an employee with a remuneration package you are uncertain over, then do get in touch. The team at Streets are well placed to help advise you with the optimum remuneration for your circumstances. 42-43.qxp_Layout 1 30/09/2021 12:57 Page 244 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk IT AND COMMUNICATIONS SPOTLIGHT Most businesses will have at least broadband in their premises and likely a half decent telecoms system in place, so they may be looking to augment their IT and communications rather than replace it altogether. Yet simple solutions such as file sharing services, software and apps still go neglected by many. WeTransfer and Dropbox et al enable companies and individuals to securely send – and in the case of the latter, store – documents, images and other important data. This can be accomplished in the office or remotely from a smart phone or tablet and both services are free-to-use up to a certain capacity whilst also offering paid- for subscriptions for businesses. The topic of Dropbox brings us on to cloud storage. At its simplest, the ‘cloud’ refers to software and services that run or are stored on the internet rather than locally on one’s computer. As with the internet itself, the cloud isn’t owned or managed by any one organisation but is rather a collective term for a variety of applications operated by different organisations. Though, it’s fair to say, that some organisations have more of a monopoly than others – big names being Google, Amazon and Microsoft. For businesses, this allows more flexible, accessible and trust-worthy storage than a hard drive or local servers – both of which can malfunction, be ruined in fire or flood or corrupt and erase data. Because of its inherent flexibility, cloud computing is perfectly suited to remote workers who can access everything they need from a home office. The same can be said for working on-the-go, with staff able to access files via a smart phone, tablet or laptop, whether that’s on the way to a meeting or during a networking session. Surely that’s preferable to the oft-forgotten memory stick. As businesses continue to adapt to home working, cloud computing has never been more critical to a company’s success and future trading. Constant evolution Updating an outmoded telecoms system not only helps to streamline and modernise a company’s internal process, but also improves competitiveness in an increasingly difficult marketplace. At a time when companies are facing economic pressure, bosses can’t afford not to update. 46 Á 44-47.qxp_Layout 1 30/09/2021 12:58 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 45 IT AND COMMUNICATIONS SPOTLIGHT © Shutterstock /Marko Aliaksandr 44-47.qxp_Layout 1 30/09/2021 12:59 Page 246 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk IT AND COMMUNICATIONS SPOTLIGHT Despite the obvious benefits to business, there are companies that still refuse to implement a cloud storage strategy into their operation. There are several reasons why, from misconceptions around the initial investment and subscription costs, to a simple fear of new technologies – something that many heritage SMEs struggle with. But perhaps the biggest fear concerns security. However, the security of cloud storage and similar services is improving all the time. Those regular updates on your smart phone usually contain security fixes, meaning they need to be installed as soon as possible. Compared with, say, the telephone, digital technologies are still very young, but it’s important for companies to be cognizant of security risks such as hacking and phishing and tool staff up with the knowledge they need to operate and work more securely. A robust suit of virus protection services is also a must. Some businesses may think they’re saving money by using a cheaper – or even free – virus protection but, ultimately, it’s a false economy. Businesses cannot afford to cut corners when it comes to cybersecurity, especially in this economy. Though hacks are never welcome, bigger businesses are often in a better position to endure them and may even have insurances in place to cover them in such an event. But for SMEs, a hack can be truly devastating and something they may not ever fully recover from. But the benefits outweigh the risks. Take, for example, video conferencing, which has existed in one form or another since the eighties. But now with web- based video conferencing, teams can convene in virtual meeting rooms. Most video conferencing solutions typically come bundled with online collaboration tools such as document sharing, text chat and screen sharing. The benefit, of course, is that teams can collaborate over distances and meetings can be hold from parties in two or more different countries. It’s all well and good saying that businesses should adopt digital communications and cloud technologies, but that’s often easier said than done. Given the size of the East Midlands and its vast rural areas, it’s no surprise that connectivity is a challenge for many businesses. It’s critical that businesses future-proof themselves where possible and sure-up their operations, and that means guaranteeing they have good broadband in place – after all. The continuing rollout of 5G connectivity is taking businesses to the next level with promises of lightning-fast uninterrupted connectivity. As major towns and cities across our region continue to enter the new age of digital connectivity, it’s important that our vital rural businesses are included. One of the biggest business communication trends tipped for growth is unified communications – that is the integration of real-time and near real-time communications systems. This means bringing together chat services, phone, video conferencing, messaging, feedback and commenting systems into a unified system which reduces infrastructure and boasts more features for a more responsive experience. What has taken place with video conferencing becoming near inseparable from other collaborative communication tools will happen right across the sector as companies bring their communications increasingly into one unified solution. 44-47.qxp_Layout 1 30/09/2021 12:59 Page 3www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 47 IT AND COMMUNICATIONS SPOTLIGHT © Shutterstock /kirill_makarov Necessity in the wake of the pandemic has driven the widespread adoption and use of video conferencing applications such as Zoom. Likely, these tools will simply become part of a business’ toolkit rather than just being a means of surviving the coronavirus crisis. Though none of us would have asked for the pandemic, we can use it is a catalyst to usher in step changes in outdated IT and telecoms systems and usher in an age of more unified, interconnected business communication. 44-47.qxp_Layout 1 30/09/2021 12:59 Page 448 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PUBLIC RELATIONS I’ve just got back from my first fortnight off in four years. My word I needed it! Now, I’m fortunate in that I get to work where I like (to an extent) but that does come with a cost - it is TOO easy for me to work, even on holiday. This time, however, I did not read ONE email. Of course, right now, I know that lots of readers will be weighing up the pros and cons of flexible working and the ‘back to the office’ debate. The ‘4 Day Week’ concept is HUGELY popular in the media and I’ve had tonnes of requests for case studies from reporters on the subject over the last 3 months, so let’s address this debate from a PR and hound and my phone went mid-walk. It was a client and in my line of work this is often urgent. I didn’t want to ignore it but I didn’t want to sound distracted either, let alone breathless. So I went for the honest approach: “Morning. I’m not going to lie, I’m in the park with the dog but if I can help you right now I will. I’ll just find a bench.” Now, my client also LOVES dogs and we spent the next 5 minutes or so chatting about his hounds until we got back to the point in hand. Cue the irony music (no Alanis, cutlery problems are not ironic), my client wanted to talk about flexible working. They are doing some great things When it comes to flexible working, great PR is in the bag By Greg Simpson, founder of Press for Attention PR and the PR and Communications Ambassador for the IoD in Nottinghamshire and Derbyshire perception perspective. Think PR is all glamour? Think again. At approximately 7.30am today I was mid-swim after my Monday guilt- assuaging workout when I noticed two strange black bags floating towards me. Small, black bags. My instant reaction was disgust, why wasn’t the pool cleaned first thing? Then slowly it dawned on me, they were MY bags. Or to be more accurate, my dog’s. I think we all know what I mean by that. Mercifully they were empty and had fallen out of my shorts after being stowed there yesterday. I bring this up not to make YOU bring anything up (sorry to any queasy folk), but because I’ve just got back from walking said 48-49.qxp_Layout 1 30/09/2021 13:00 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 49 PUBLIC RELATIONS around supporting their employees with the ‘new normal’ and he wanted to discuss how we might leverage it in terms of attracting and retaining new talent and also new business partners. Of course, we will be shouting loudly in the press about this and using this angle when we enter awards this year. We chatted for a good 15 minutes, came up with a plan and now I am back in the office about to work it up for them once I finish this column. The dog is asleep on my feet. This didn’t take place in a trendy PR office, replete with ping-pong tables, beer fridges and uni-cycling creatives. Nor did it take place in their boardroom, during the token hour-long meeting most folk seem wedded to. It came in the park, at no notice, with a dog in one hand, a phone in the other, and of course some small black bags in my pocket. I have a new angle for my client, they have a great opportunity to position themselves as a forward-thinking firm with a great organisational culture, and, crucially, Bear got his walkies even though I was ‘busy’. Take a look at how flexible your working culture is. If you embrace it, shout about it. It conveys great messages about your brand. If you don’t, consider whether it is holding you back from attracting clients and top talent. Take care, my flexible friends, and happy headlines. A former business journalist, Greg Simpson is the author of The Small Business Guide to PR and has been recognised as one of the UK’s top 5 PR consultants, having set up Press for Attention PR in 2008. He has worked for FTSE 100 firms, charities and start-ups and conducted press conferences with Sir Richard Branson and James Caan. His background ensures a deep understanding of every facet of a successful PR campaign – from a journalist’s, client’s, and consultant’s perspective. 48-49.qxp_Layout 1 30/09/2021 13:00 Page 2Next >