Leading by example

A recent survey from accounting and business advisory firm, BDO, has forecast that the cost of living crisis will have a greater negative impact on businesses than the pandemic.

According to a report in The Times, BDO spoke to 500 medium-sized business owners and a fifth said that the biggest threats they were facing over the next six months are rising energy costs and inflation as well as disruptions to the supply chain, which have been made worse by Covid lockdowns in China.

The Bank of England has warned that inflation could exceed 10% in October, but the BDO is quoted as saying that the rise in national insurance contributions is also a ‘tipping point’ for many businesses, one that could ‘exacerbate’ the impact of inflation.

The pressure is certainly on for businesses not just to manage energy costs and supply chain issues, but also to look after their most important asset – their staff.

One company that is leading by example on this front, is Listers. The manufacturer is not only giving each employee a ‘Cost of Living Allowance’ of £1,000 but is also committed to the Real Living Wage as a minimum for new staff.

According to Listers, these measures will cost the firm over £400,000 but as MD, Roy Frost, explains “we cannot afford to jeopardise our service levels by losing our good people.”