Managing the financial impact of employment

The cost of living pressures and minimum wage increases is something we continually hear about in the news and from our clients. The impact of the current economic climate means business overheads are increasing and costs are being passed onto their clients, which is sometimes difficult to manage.

Every business will be faced with increasing wages at some point, and for many businesses the challenges that this presents can seem daunting and difficult to navigate. Here are some of the main challenges I see businesses facing when it comes to employment.

Increasing wages can signify a positive trend but it also presents a financial challenge that a business needs to address to ensure they can continue to operate as normal. Increases can be accompanied by the need to upgrade technology or machinery or be on top of existing debt.

When wages increase, the timings of payments into a business may not align, which means businesses may need to pay wages before receiving payments on their invoice, and this can lead to cashflow issues.

Whether it’s upgrades, invoice issues or paying off debts, businesses want to maintain efficiency and continue to meet debt obligations when their faced with wage increases, but it can be difficult to be prepared and manage effectively.

Employment doesn’t just pose financial challenges because of wage increases. Staff shortages can also make an impact. Shortages lead to decreased productivity due to the existing workforce being stretched thin and unable to meet demands.? To counteract this, investing in technology and automation might be necessary to increase productivity, but these improvements often require upfront financial investment.

Employment and finances can be complex to manage. For many businesses, having access to finance allows them to navigate the challenges of wage increases and seize opportunities for expansion and improvement. This is where Hexa is able to assist, whether it’s finance for equipment and technology of freeing up cashflow to help with invoicing issues, Hexa have solutions to help businesses manage their finances successfully.

If you would like to find out more, get in touch with me or the Hexa team.