End of default retirement age confirmed
After much discussion and speculation, the government has finally confirmed that the Default Retirement Age (DRA) will be phased out this year.
From April 6 to October 1 2011, employers will only be able to enforce retirement upon those who a) were informed of this decision prior to April 6 and b) will be retiring before 1 April. From October 1 onwards, employers will be unable to enforce retirement due to DRA.
The change in policy has been implemented by the government, largely to counteract pension shortages caused by an ageing population. Ed Davey, the employment relations minister, has commented that this is “great news” for older people, business, and the economy and feels that the change will boost the labour market overall.
Davey’s thoughts will ring true for Age Campaigners who have been battling for the end of DRA for some time, arguing that many mature workers are both able and willing to work past 65.
However, not everyone is pleased by the scrappage; concerns have been raised from various employment bodies, for example John Cridland from the CBI, who states that “There is not enough clarity for employers on how to deal with difficult questions on performance”. With many individuals and organisations publicly voicing these concerns, it is assumed that the government will be forced to provide both employees and employers with greater clarity in the forthcoming weeks.
In addition to the DRA announcement, today brings the publication of the Pensions Bill, which states that companies will be required to enrol staff in pension schemes. For many large firms this will mean reducing their contribution to current schemes as they will be making contributions for far more employees. For smaller firms, many of whom are already facing a worrying year ahead, this may be another financial concern to add to the pile.
Latest Carrington Members’ Offers
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Your home may be repossessed if you do not keep up repayments on your mortgage.
For Residential and Buy to Let mortgages we charge a fee of £695 for advising on and arranging your mortgage. This fee is payable in 2 stages: £195 non refundable application fee with the balance due on production of an offer and payable on completion of the mortgage or 60 days after the date of the offer (whichever is the sooner). The lender may also pay us commission.
Alternatively, we can work on a pure fee basis of 1% of the loan amount for our services and we will refund to you any commission we may receive from the lender, subject to a minimum fee of £1500.
For existing clients we charge a review fee of £85. The lender may also pay us commission.
For Commercial mortgages we usually charge a fee of 1.5% of the loan amount. The fee is negotiable and is dependent on the loan amount and the complexity of the proposition. If we receive a commission from the lender we will let you know the exact amount, and may refund an element of this to you.
We do not charge a fee for insurance advice; we only receive commission from the provider.
Granite Transformations
All Carrington members will receive a 10% discount off all quoted prices for our full range of products which can be designed to your bespoke requirements (not available in conjunction with any other offer).
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Jenny of JRL Coaching is offering free 1-2-1 90 minute coaching session to 10 Carrington Members who would like to learn and experience what coaching is about, and develop a strong 2-way relationship.
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Jenny Lamski
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NJL Consultancy
Nigel Leonard of NJL Consultancy will write all existing life insurance policies into trust for the possible avoidance of Inheritance tax and probate FREE OF CHARGE. No broker fees charged for mortgage or insurance advice.
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• Free Site Survey to discuss CCTV security options.
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Watch Out World
Watch out world is offering a 10% discount for Carrington members on their one-day interactive seminar on how to speak in public effectively with greater confidence held on Tuesday, 9 November.
Normal price: £245.00 pus VAT, discounted price £220.50 + VAT.
Contact Details
Vanessa Ugatti
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Baby Boomers Retirement Plan
Those born at the beginning of the Baby Boomer period (1946 – 1964) are starting to reach the age of retirement, however, with the current economic climate how will this group of experienced employees fund their retirement?
Heyday, a research group set up by Age Concern, conducted a survey on 1,770 people finding 58% of those in their 50s and 60s who are currently working want to continue a level of work beyond retirement, with one in ten not wanting to retire at all in order to support their retirement.
Despite many of those heading towards retirement wishing to continue working, in accordance with government wishes, many employers are keen to retire their senior executives at 50 due to the rapid rise in management trainees and younger staff. Employers are failing to recognise the vast knowledge and experience that this generation hold and are quick to trade them in with what they value – younger and more knowledgeable staff. Therefore, the Government should be encouraging a business culture where older workers are valued and retained by firms.
Baby Boomers are generally cash and asset rich and need to invest their money as they wind down to retirement or seek alternative opportunities to supplement early retirement. Recent trends are showing that alternatively to continuing as employees, the Baby Boomer generation are increasingly buying businesses as they approach retirement age to support their financial framework. It is a known fact that buying a business with a proven track record is safer than starting a new enterprise and investing in shares and pension funds. This explains why when BusinessForSale.com conducted a survey they found that 27% of those browsing are aged 55 and over. By investing in a business with stability, Baby Boomers will have a reliable and consistent source of income to support their retirement.
Alternatively, retirement is an opportune time for a number of business owners to sell their business in order to support a healthy financial retirement. These businesses are usually well developed and secure, making them an excellent choice for those looking to invest in business to support retirement.
The lack of loyalty employers are increasingly showing to their older employees is a wake-up call for those approaching retirement to invest their money and follow the new pattern of retirement that the first wave of Baby Boomers have created.
Get ready for “the most dynamic and entrepreneurial decade in our history”
Yesterday, David Cameron made a speech in Manchester, as part of his regional tour to promote jobs and growth, stating that the government is working to make the next decade “the most dynamic and entrepreneurial decade in our history”.
This drive for Britain to become a more entrepreneurial nation in the forthcoming years is all part of the Government’s plan to pick up public sector slack through growth in the private sector - with SMEs and start-ups playing a huge part.
However, with money tight, loans hard to secure and a VAT increase to boot, the thought of expanding or starting a business for many individuals may seem impossible. So what is the Government going to do to support this entrepreneurial initiative?
Apparently the Government will be “laying out the red carpet” for smaller companies through the creation of an “entrepreneur visa”, support of innovative companies and web start-ups, an increase in the new enterprise allowance and by cutting bureaucracy.
This all sounds like good news, however, much support will be located away from London and the South in order to make sure that growth is more balanced across the whole of the UK which will be disappointing news for those based in southern regions.
On a more positive note for small businesses in the South, Peter Ibbetson, small business chairman at NatWest and Royal Bank of Scotland has some reassuring words with regards to access to small business loans,
“Many SMEs have been in survival mode, and will have exhausted all credit lines, so there’ll be demand for working capital as they look to restock and re-staff,” he says.
“Whether SMEs are looking to regroup or invest, we have the funds available to meet demand.”
Will the increase in VAT affect SME’s input on the economic recovery?
With the increase of VAT raised yesterday (04/01/2011) by 2.5% to 20%, the Federation of Small Businesses (FSB) conducted a survey on 1,600 business owners, finding that 71% believe the rise will be detrimental to their company.
The increase in VAT is measured to generate £13billion a year of extra revenue in order to tackle Britain’s record level debts however will the increase on SME’s in the private sector affect the economic recovery?
The government stress that SME’s in the private sector are vital to strengthen the economic recovery however the following statistics recorded by the FSE show that the rise in VAT will restrict the input and pace of the recovery. The survey conducted by the FSB found that 52% of SME’s expect to increase their prices, 45% expect a fall in turnover and 36% expect a loss of customers as a result.
Additionally the internet giant Ebay conducted a survey of online businesses finding that only 24% of SME’s will absorb the entire costs of the VAT however 39% will avoid passing on the whole cost, yet most won’t increase prices in fear that an increase in price may scare off customers.
To help lighten the stress on SME’s the FSB want to increase the threshold at which they begin to pay VAT from £70,000 to £90,000, this is estimated to put back almost £900 million in the pockets of small businesses.
Further to the VAT increase, National Insurance will be increased by 1% in April which will no doubt put more strain upon SME’s. Despite the increase in VAT and national insurance the government are positive that SME’s are capable of playing a definitive role in the recovery of the economy albeit at a slower pace than expected in 2010.
SMEs putting themselves at risk this winter
The recent severe weather conditions have caused many implications to office life as staff have been unable to reach the office as the roads are impassable. Despite the warnings from weather forecasts, YouGov found in a survey, conducted on behalf of NewVoiceMedia, that senior decision-makers in SMEs admitted to not having a comprehensive disaster recovery plan in place in the event that the office is inaccessible.
A minor 17% of those surveyed had a disaster recovery plan in place that enables landline calls to be routed to individuals within the organisation, so that business could carry on as usual. Further to this 14% of businesses admitted to having nothing in place for rerouting calls, meaning that should a customer try and call into the office the phone would ring continuously.
With the advances in technology available at present, it is no longer acceptable for a business to shut down if staff can’t make it into the office. There is technology available for companies to route all their incoming calls to staff mobile phones or landlines so they can work effectively away from the office and maintain a seamless level of service. Alternatively there are businesses who provide a paid for answering service if staff are unable to manage calls from the office.
In addition to re-routing calls, SMEs should ensure staff can access their email accounts from their personal computers at home along with a selection of documents that can be sent to the personal computer to be worked on in the home whilst absent from the office.
Many SME senior decision-makers ignore disaster recovery, believing it is an extra expense and inconvenience that rarely gets used. However it is possible that the loss of customers through not being able to answer calls can exceed the costs of investing in a disaster recovery plan.
Closing shop for Christmas
It’s coming to the end of the year, days are short, the weather is miserable and colds are spreading like wildfire. In short, we could all do with a break, so a few days off with friends and family will be just the ticket to revitalise us for the New Year. However, a few words of warning, poor planning before the holidays often leads to the New Year beginning with more of a bust than a bang. So just like St Nick, before you close up your office, you should make a list and check it twice. Here’s one I prepared earlier to get you started:
1. Make sure that all client work has been completed, or if this is not possible, that you have agreed new deadlines for the New Year. No one likes to come back to host of angry emails/answer phone messages from irate customers.
2. Make sure that all of your work is organised for your first week back so that you don’t get hit with any nasty surprises when you’re trying to ease yourself back into ‘work mode’.
3. It may be a good idea to nominate someone from your office to keep tabs on emails or be on call in case of an emergency.
4. Make sure that you have contact details for all key members of staff in case of emergencies.
5. Let any key clients/suppliers know that your office will be closed and provide them emergency contact details just in case.
6. Turn on your ‘out of office’ and answer phone and if possible add a note to your website, including information such as when your office will reopen, emergency contact details and if your email is being checked or not.
7. Ensure that any outstanding invoices/bills have been paid so that you don’t run into cash flow troubles in the New Year.
8. Make sure that all computers and lights are turned off so that you don’t run up the electricity bill.
9. Enjoy your time off!
Networking tips for the holiday season
We are deep into the holiday season with plenty of parties on the agenda and continue into the New Year. However the main objective is to remember that it’s not just a party, it is still an opportunity to make new connections or strengthen existing ones.
Circulating and speaking with a variety of people, dressing appropriately, behaving appropriately and drinking in moderation is still of high importance to avoid any embarrassment or destruction of existing and potential relationships. Most importantly know what you need so you can work it into your conversations.
Holiday parties are no different when it comes to planning. It is important to think who is likely to be at the party and which of them you can help and help you, then make it a priority to speak with all of these people. It is not necessary to revise a script as a holiday event tends to hold more casual conversation however think about what you would like people to know about you and be ready to say it.
As tempting as it is to meet as many people as possible, it is best to meet a few people and connect with them than to meet everyone and not have any of them remember you and vice versa. It is very tempting at a more relaxed holiday party to spend time speaking to close contacts and strengthening the relationships however it is important to extend this conversation with several new people to start forming further connections.
With these tips, the business parties you attend throughout the holiday season will be a breeze and you will be well on your way to making additional contacts to start the business New Year with, and remember don’t forget those business cards.
Time for small businesses to grow
Small businesses have been at the heart of the economic recovery however small firms must have flexibility in order to expand, strive forward, increase and add to the growth within their region.
For those businesses who have managed to survive through the recession and participate in the economic recovery, now is a great time to stay ahead of the game and take action and advantage on expansion and growth in 2011.
Those who chose to take their current market situation as an opportunity to grow, will achieve long term achievements; making expansion a viable and strategic move. A move like this will allow small businesses to no longer be at a cost disadvantage in comparison to their larger rivals enjoying economies of scale.
Despite small businesses having the advantage of future prospects in expansion, there are many issues which may be faced that will hinder the potential in growth. A survey conducted by the ‘Voice of Small Business’ on 4,000 members, found that broadband speeds, availability of finance and red tape all contribute to the delay in potential growth.
Further findings within the survey are as follows; 75% want the UK tax system to be simplified, 57% are keen to go green and believe that doing so would provide cost savings, 33% believe too much red tape is hindering the growth of their business and 63% are unhappy with the speed of their broadband connection and want to see accurate advice from service providers. In addition promised financial backing from banks is not being received which is slowing down or completely halting the process of growth.
Even though small businesses are faced with the addressed issues above, if these can be conquered then small businesses have the opportunity and are set to expand in their industry and gain a strong market share with the big companies.
Small Business Marketing Trends for 2011
There are several emerging issues and trends surrounding the process of networking that are being created out of the need to find an effective way to develop business from entrepreneurs and sales people. Addressed below are the three most leading trends that are believed to become more important over the coming year.
Online and face-to-face networking will both continue to flourish
Online networking sites such as LinkedIn and Ecademy are both two very successful tools to network and market however even with the advance in technology, networking should not stop here.
Referrals are the foundation of successful and reliable business; they have and always will be dependent upon a strong and well maintained relationship that can only truly be built face-to-face. People will only refer those they know and trust and these characteristics cannot be achieved through online networking, hence referrals cannot be achieved purely through this method.
Online networking sites provide a forum to exchange ideas, share knowledge and increase visibility which will increase in popularity over the next year and play an essential role in business development. However it is yet to provide the same quality of relationship building and trust as face-to-face networking does.
Face-to-face business networking is increasingly growing; if you were present at the Carrington Breakfast on the 9th December you would have experienced a result of this. Both trends are developing however at no time in the foreseeable future will online networking dominate face-to-face contact.
To maximise your success and relationship stability; combine the two networking tools by adding those you meet face-to-face to your online network as a way to stay in touch and build the relationship for the next encounter.
Networking & Social Capital Education
Currently there are only two colleges in the world that offer regular, core-curriculum College courses on networking and social capital, both located in America.
A future trend looks set in the emergence of private professional training organisations in networking, social capital and referral marketing for small business owners who want to learn how to utilize the power of word-of-mouth-marketing.
Small companies utilise networking more efficiently than big companies
Large companies tend to be oblivious to the power networking has to offer when growing a business. Not only do you build awareness of your company but strong relationships lead to referrals and the generation of business.
Small businesses have the understanding that networking is a two way street; you only get out what you put in. Large businesses tend to remain in the mindset that large advertising campaigns and vast amounts of money spent on traditional marketing methods is the only way to grow. However networking is certainly a trend that many large businesses will soon understand the concept of and adopt.
At Carrington there is proof that networking gives enough power to grow without a costly advertising campaign, to see this please click here to member’s success stories.
Business networking will continue to grow over 2011 and beyond but will only do so with encouragement and inviting of guests from current networkers. With the three top networking trends listed above, networking will flourish throughout 2011.
