Employees

Finding quality staff resources - how is it for you?

I reckon we are now experiencing our greatest challenge in our 20 years history in finding more quality Sage and Xero staff as we expand. This is especially the case in London although Bristol is almost as bad. Recently we received 33 serious applications for a book-keeper position. We narrowed that down to four good enough for interview, then speaking on the phone reduced this to two. The best candidate took a position before our planned interview, leaving one who just wasn't good enough. So we start again!

We've even had the same experience in recruiting a seventh qualified accountant for thoroughly checking of the work of the book-keepers at each month end - a unique feature of BookCheck. At least our clients are shielded from this task which is part of our attraction so this encourages us to succeed.

I have a feeling that this will be an ongoing challenge, probably becoming more difficult so we'll have to find other methods. We're so used to our standards, they're imbedded in all we do. It's clearly pointless compromising on quality as we'll suffer down the road. It's not even a pay issue, although wage rates are climbing steadily, that's hardly surprising. It's really a shortage of quality. We'll just have to try harder.

Speaking to other professionals it seems this is a common problem. How is it for you?

Anthony Pilkington FCA      Managing Director, BookCheck Ltd

This entry was posted in Business Development and tagged in Sage, Xero, Employees, BookCheck, Bristol, London by bookchadmin

SME - so why is this not a good term to use?

http://www.dreamstime.com/royalty-free-stock-photos-sme-services-image29012258 We're all very familiar with the term SME and hardly anyone needs reminding that it stands for Small Medium Enterprise. It's used everyday somewhere or other. Today's article in my paper reported "about 63% of loan applications from SMEs secured a loan" so what's the problem? Of the 4.8 million private sector businesses in the UK what percentage are SMEs? Is it 40% or 60 % or more? Would you believe it's 99.87% and that's the problem as this covers such a huge range of different types of businesses all lumped together in just one heading. Here's the BIS Summary of Private Sector Businesses  

  Employees

Businesses

 

Employment

 

Turnover

 
       

thousands

 

£   millions

 
               
solo None

3,557,255

74.20%

3,902

16.33%

207,805

6.64%

               
micro 1-9

1,022,695

21.33%

3,848

16.11%

416,162

13.29%

small 10-49

177,950

3.71%

3,471

14.53%

454,327

14.51%

medium 50-249

29,750

0.62%

2,909

12.18%

450,384

14.38%

               
  SMEs (0-249)

4,787,650

99.87%

14,130

59.14%

1,528,679

48.82%

               
large 250 or more

6,455

0.13%

9,763

40.86%

1,602,870

51.18%

               
  All businesses

4,794,105

100.00%

23,893

100.00%

3,131,549

100.00%

               
  All employers

1,236,850

25.80%

19,991

83.67%

2,923,744

93.36%

               
Source   BIS Department for Business   Innovation & Skills  
    - Business Population Estimates 2012    

Just about all private sector businesses are SMEs so it's a meaningless term.  A great deal of policy is focused on SMEs - you don't have to look far to see this. But focus is the wrong word because SMEs cover all the way from the 1 person business (74%) up to 249 employees. To make any sense, policy needs to be focussed on a minimum breakdown of solo (1 person), micro (up to 10), small (up to 49) and medium above this as obviously these are very different businesses in many respects. All of our clients are SMEs yet they vary enormously across the size range - just about everything is different, including their needs. This begs the question - does Government or indeed large business understand the difference between the solos, the micros, the small businesses in our economy? If not then this has implications for their successful development. The more focused the policy is then the more likely of course it will be successful but do policy makers really differentiate, do they have a real understanding of a solo business looking for finance, do the statistics break it down - it's doubtful and there's very little sign of this information being published. SME however is such a convenient term so how do we wean ourselves away from something that is meaningless - I would love to know your thoughts and suggestions.  

This entry was posted in Accounting, Business Development, Funding and tagged in SME, Employees, Business Development by bookchadmin