Business News Round Up (01/04/2021)
Find out more about Where Now Consulting. We update our business news daily.
More employers reporting increased productivity benefits from homeworking compared to last summer, new CIPD research finds
The productivity benefits of homeworking appear to have increased during the pandemic, with employers now more likely to say that the shift to homeworking has boosted productivity (33%) than they were in June 2020 (28%). This is according to new research by the CIPD, the professional body for HR and people development, based on a survey of 2,000 employers and in-depth interviews with seven organisations in different sectors. The survey found employers are also less likely to say that increased homeworking has decreased productivity (23%) compared to last summer (28%), suggesting employers have had a significant net productivity benefit over the period. 38% of employers say productivity has stayed the same (unchanged from June 2020). Overall, more than two thirds (71%) of employers say that the increase in homeworking has either boosted or has made no difference to productivity. Perceptions of productivity differed between organisations that had offered line manager training in managing remote workers and those that hadn’t. Of those employers who offered such training, 43% said productivity had increased during homeworking, compared to only 29% that hadn’t offered training.
https://www.cipd.co.uk/about/media/press/010421homeworking-increased-productivity#gref
A quarter of Scottish businesses have expanded during the pandemic – Rathbones
More than half of high net worth individuals and business owners are optimistic about the future of the Scottish economy, according to new research from Rathbones. The investment management firm revealed that 59% were optimistic about the state of the economy over the next 12 months, while 44% said that the easing of restrictions was a key driver behind the relative strength of the Scottish economy. During February, Censuswide surveyed 504 high net worth individuals – those with over £250,000 of investable assets – and business owners across Scotland. More than a quarter of Scottish businesses have been able to expand during the pandemic, with a third of businesses in Orkney and Shetland having done so – followed by those in Dundee, Perthshire, and Angus. Some businesses adapted their business models, with many moving to online sales in order to generate income, while 16% founded a new business during the last 12 months. However, 37% reported that their business had suffered during the coronavirus crisis.
https://www.insider.co.uk/news/quarter-scottish-businesses-expanded-during-23829884
North West confidence rises again – Lloyds
Business confidence in the North West rose during March, according to Lloyds, with optimism continuing to spread across the region. Companies reported higher confidence in their own business prospects month-on-month, up five points to 15%. When taken alongside their optimism in the economy – up 20 points to 36% – this gives a headline confidence reading of 26%. The figure is the highest total recorded since February 2020. Martyn Kendrick, regional director for the North West at Lloyds Bank Commercial Banking, said: “Business confidence has risen for the fourth consecutive month in the North West, and as we mark the first anniversary of lockdown, it’s encouraging to see firms feeling more optimistic now that the end of restrictions is in sight. Whatever the coming months may bring, well remain by the side of businesses across the region as they look to recover and create new growth opportunities.”
https://www.insidermedia.com/news/north-west/north-west-confidence-rises-again-lloyds
Vaccine impact awaited as short term remains tough
The longer-term impact of COVID-19 on the Scottish economy is becoming clearer as we get more and better data uncovering the scarring effects of twelve months of lockdown on businesses, communities, and workers. Key sectors of the Scottish economy, especially for rural communities, have been among the worst affected. According to official Scottish Government data, two out of every three workers in accommodation & food services and arts, entertainment & recreationremain furloughed. Although the vaccine rollout and hope for a strong summer recovery has sent business optimism surging to record levels, the short-term outlook remains tough. Many businesses are still battling for survival. The Scottish Retail Consortium reports that the total volume of retail sales is nearly a quarter lower than a year ago. Uncertain consumers are putting off non-essential purchases. The Office for National Statistics says 28% have no or less than three months of cash reserves. Only 53% seem certain that they will survive the next three months.