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Yet, our working days are getting more demanding and the time we must juggle both our personal, and professional lives seems to be even more restricted.

Maintaining a positive work-life balance is a key factor for employee happiness. Because of this, and in order to better work around personal lives and work demands, dynamic working, which was once a somewhat unfamiliar term, is now a highly sought-after workplace benefit. Below Derren Bevington, Business Director at Michael Page Finance, explains further.

Dawnconsultancy offers full range of dynamic consultancy including Dubai offshore company in UAE, providing best innovative financing solutions to help troubleshoot any business problem with ease.

In fact, in previous research, we found that 66% of professionals working in banking and financial services would like to see flexible working hours offered by their employer and 53% also listed work from home options in their top three desired benefits. However, only 26% of those surveyed had actually been given the option to work from home.

Why is it important?

A recent study conducted by Michael Page shows that millennials expect flexible working to be offered as standard in the workplace and not as an additional benefit. However, this doesn’t mean that those who fall outside of this age group don’t equally enjoy the benefits of dynamic working or want them to be included as part of their working life. The ability to plan work around personal life events allows individuals to better organise their time, take care of their physical and mental wellbeing, and ensures that they are in the best position to manage a productive work schedule. As we are in a candidate-short market, it is important good people are retained. Being able to adapt to the changing motivations of employees to drive forward retention in later years is key.

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How to introduce dynamic working

What’s important to remember is that flexibility in the workplace is defined differently by everyone; what works for one person may not work for another. The key to success is to ensure that it is tailored to the individuals in the workforce and that they have the option to choose what is important to them.

Flexible working does not mean fewer working hours. It is a way to show employees they are trusted to do their job no matter the time or location they choose to work in.

Flexible working does not mean fewer working hours. It is a way to show employees they are trusted to do their job no matter the time or location they choose to work in.

These are my top tips for implementing flexible working successfully:

Ultimately, it’s important to define what dynamic working means in your business before implementation and ensure this is communicated to everyone in the company. The secret to maintaining a flexible working approach is to always make certain it remains adaptable to everybody’s needs. This working arrangement should be adjustable to the ever-changing schedule of people’s lives and encourage employees to produce their best work.

Below, Harpreet Singh, Executive Director at Brickendon, delves into some case studies and examples that point towards an evolving workplace, remarking on the financial services sectors and its need to conform or adapt.

In November 2018, tens of thousands of Google employees conducted a worldwide walkout targeting workplace culture less than a year after the internet giant topped Fortune magazine’s list of best companies to work for the sixth year running. The protestors’ main issue was how the company was treating women, but this wasn’t their only concern.

Following the protests, media reports cited Google saying it would increase transparency and improve its harassment policies, but it shouldn’t have taken a revolt of this scale for the issues to be acknowledged. Jose Mourinho, former manager of Manchester United, who was unceremoniously sacked in December, may have the answer to Google’s problems.

Speaking to the media in January, Mourinho, one of the most successful football managers of the last two decades, said: “Nowadays you have to be very smart in the way you read your players”. He then went on to compare current players with players from previous generations and spoke about the increased need to have the right structure in the club to support the players and the manager. Like football, employee demographics in the corporate world have changed significantly over the past decade. According to a recent study by Deloitte, 75% of the global workforce will be millennials by 2025. And therein lies the problem. In the same way as Mourinho believed Manchester United was not reading its players correctly, neither, if recent events are taken into account, are many businesses.

The expectation of flexibility is neither misplaced nor impossible

In addition to having been born and grown up in an online age, there are several characteristics that differentiate millennials from previous generations. Whilst they consider themselves equally as hardworking and as ambitious, if not more so, than generation x and baby boomers, they also require more flexibility, faster results and care more about their personal well-being. According to a report in US news magazine INC., more than half of all millennial workers would like the option to work remotely, while up to 87% want to work on their own schedules.

They also perceive themselves to be more socially aware and eco-friendly and expect these traits from their employers too. Luckily, with the significant improvements in technology over the past decade, this expectation is neither misplaced nor impossible to achieve, as long as employers are prepared to innovate.

Technological improvements make remote working an easy option

Take flexibility, eco-friendliness and well-being for example. With massive improvements in communication-related technology, it is now possible to work remotely without any loss of productivity. Providing flexible working options not only reduces real-estate costs and lowers the firm’s carbon footprint but can also help increase employee motivation.

So, if done correctly, one single action or statement, such as allowing employees to start work earlier or later, or to take longer lunch breaks to facilitate participation in sporting activities, can lead to a chain of events that significantly improves the attractiveness of an employer.

But, the reverse is also true. What if a telecommuting employee needs to come into the office for a face-to-face meeting and realises that he/she doesn’t have a desk to work from? The obvious impact is a decrease in efficiency. However, research shows that not knowing whether you have a desk space can also lead to lack of motivation and stress and can in turn, have a serious impact on an employee’s overall well-being. In addition, it can create an environment of unhealthy competition due to a lack of information, in this case, related to desk space and employee whereabouts. Unlike employees from previous generations, millennials don’t tend to feel the same connection to their company and as a result will not stay somewhere they are not happy.

It’s all about work-life balance

As a result, it may be worth managers considering the way in which a flexible work schedule provides a stronger sense of work-life balance – a quality that is reported to attract millennial employees to a workplace in droves and keep them happier for longer than the two-year stint that has become the norm.

It may be worth managers considering the way in which a flexible work schedule provides a stronger sense of work-life balance.

Typically, desk space is the responsibility of real-estate management teams and doesn’t list as a top priority for senior operational managers. Desk allocations are usually managed on spreadsheets or similar static data-storage tools, which don’t allow for the constant monitoring required for effective desk-space allocation. Technology can again rectify this situation, with tools (such as HotDeskPlus, a new workplace optimisation tool and app powered by Brickendon Digital) that use mobile apps, sensors and QR codes to allow employees to view, reserve and check-in-and-out of specific desk spaces at a specific time.

Millennials may require more recognition and faster routes to promotion

Equally important is to foresee the problems that may arise as time evolves and millennials move through the ranks and take up senior positions. They may require more recognition and therefore faster routes to promotion. At the same time, incoming employees may prefer a more informal and non-hierarchical structure. This will require a shift in the organisational model and a willingness to embrace change in a way not seen before.

A quick look at the last couple of years reveals that many CEOs were either asked to leave their positions or forced to deal with discontented employees. These non-unionised breeds of relatively new organisations, such as Google, Microsoft and Uber, were expected to be torch bearers for the next generation of working practices, but their actions have largely been reactive. There is no doubt that what is thought to be an isolated incident can very quickly gain momentum and become a global phenomenon.

So, when it comes to millennials, you may want to count (and listen to) your chickens before they tweet, otherwise they may leave your roost sooner than you expect.

Nine out of ten workers are ‘financially sleepwalking’ into retirement, reveals new research.

Carried out by deVere Group, the research finds that 89% of all new, working age clients did not realise how much money they would need in order to fulfil their own retirement ambitions before they began working with an independent financial adviser.

More than 750 new and potential clients in the UK, the US, Australia, South Africa, Hong Kong, Spain, Qatar, France, Germany, and the United Arab Emirates participated.

Of the findings, Nigel Green, founder and CEO of deVere Group comments: “It is very alarming indeed that nine out of ten workers are financially sleepwalking into their retirement.

“The poll concludes that the overwhelming majority simply do not know just how much they will need to save during their working lives to fund the retirement they desire. Not knowing how much they will need for something as important as funding their retirement is worrying.”

He continues: “It’s particularly concerning in this day and age because we’re all living longer meaning the money we save has to last longer. Also, because governments are unlikely to offer the same level of support as they have done for generations before due to an ageing population and shrinking workforces; because living, health and care costs will increase significantly; and because company pensions are less generous, if they exist at all.”

How much people need to be putting aside now, and in the years to come, in order to be able to enjoy the retirement they want for themselves and their families does vary from person to person, of course.

However, as Nigel Green observes, there is a consistent theme: “Before they have an initial meeting with an adviser, the vast majority of people underestimate how much they need to be putting aside for their retirement. This is the case across all incomes, working age brackets and nationalities.”

He adds: “People are typically shocked when it is revealed how much they should be saving now to realise their own retirement ambitions later on. They have usually considerably underestimated the money they will need.”

The deVere CEO concludes: “Despite the shocking poll, there are always methods to plan and maximise retirement savings at every stage of your working life.

“But it cannot be stressed enough that the earlier you start your retirement planning strategy, the easier the journey to hitting your goals will typically be. I would urge people to take their heads out of the sand and get informed.

“By putting in place a clear, workable plan, you’re laying the foundations to have a comfortable and financially secure retirement.”

(Source: deVere Group)

Less than 30 years ago, North Koreans were more than twice as wealthy as their comrades in China. Now, they're significantly poorer. Here's how it happened.

FinTech companies have been the foundation of innovation in the payments and financial services sphere over the past decade, whilst legacy financial institutions, such as banks, have struggled to keep up. Generally considered in competition with one another, what would happen if FinTechs and Banks joined forces? Prabhat Vira, President of Tungsten Network Finance, explains.

Recent research shows that financial institutions are increasingly forming partnerships with fintechs to create products that streamline and improve the customer experience and eliminate inefficiencies. In fact, when questioned by PwC, 82% of banks, insurers and asset managers said they expected to increase the number of fintech providers they work with over the next 3-5 years. So what is driving this trend and how can commercial banks follow the lead of their retail counterparts?

A symbiotic relationship

Over the last few years, fintechs have evolved the customer experience – prioritising the user experience to connect with and empower customers with alternative finance. Many banks are coming to the realisation that if there is a great opportunity to participate in fintech developments.

In light of this, instead of competing with fintechs, some banks are seeing the wisdom of embracing the dynamic nature of fintechs and are actively collaborating with them. It is a very positive step forward as each party has something significant to offer the other. Fintechs require access to capital, and Banks in contras, are looking for ways to innovate more quickly, provide a slicker customer experience and leverage data to mitigate risk. Collaboration with fintechs enables banks to outsource their R&D to them and bring new products to the market much more quickly and for less cost. Ultimately, the partnerships between banks and fintechs are creating a unique opportunity for the expansion of finance solutions, and thereby adding real value for customers.

Commercial banks following retail counterparts

However, this subject is not purely theoretical for us – we have recently teamed up with BNP Paribas, a leading international bank, to offer e-invoicing linked Receivables Purchase and e-invoicing linked Supply Chain Finance (e-SCF) to large corporates in the USA and Canada. Our customers can now obtain an attractive working capital solution through the same technology provider they use for e-invoicing and procurement activities. It is the first partnership of its type and a sign that commercial banks are following the lead of their retail counterparts in collaborating with fintechs.

By linking e-invoicing with supply chain and receivables purchase, customers are offered a one-stop solution that brings together process efficiency and working capital optimisation in a single portal. They are offered attractive rates in a straight-forward, hassle-free way. From the bank’s perspective, a lot of energy can be spent connecting clients and on the payables side, on-boarding suppliers onto the system. This creates friction in the relationship, and inhibits the supply chain. The advantage for a bank and for the customer is that by partnering with a fintech like us, these trade flows are already on our platform. Therefore, both do not have to onboard suppliers twice and deal with complex technology integrations. Ultimately, the partnership helps to make the supply chain process smoother for all.

We believe partnerships such as this are shaping the future for businesses and financial institutions alike. They are enabling us to work more smartly and offer added value to customers. Speed to market is of the essence in our fast-paced, consumer-centric world and fintech providers are agile by nature and best placed to bring innovations to the masses. As retail and commercial banks realise the mutual benefits of partnering with fintechs, we are certain we will see more and more collaborations that will delight customers around the world.

Sustained economic growth and the fall in the Sterling exchange rate have put record pressure on British businesses to increase the amount of money tied up in working capital, leaving them at risk if growth were to weaken in the months ahead, according to the latest report from Lloyds Bank Commercial Banking.

Firms across Britain now have around £535bn tied up in excess working capital – up seven per cent from £498bn since the last report was released in May – meaning that firms could struggle to free up cash either to grow or to weather turbulent financial conditions.

The sustained growth seen in the past 12 months – particularly in manufacturing and in the services sector – has increased the amount of cash tied up in the day-to-day running of businesses, with the impacts from the fall in Sterling, forward purchasing of inventory and a rise in input costs, being fully realised.

At the same time, one in four businesses said their customers had taken longer to pay during the past 12 months, increasing the value of firms’ outstanding invoices.  This comes as businesses are continuing to rapidly build up inventory, leading to more cash being locked up in stock, which is then unable to be used for growth.

With as many as one in three firms saying they are concerned by economic uncertainty or a fall in sales during the next 12 months, these factors could spell trouble for British businesses if economic conditions declined.

Adrian Walker, managing director, head of Global Transaction Banking at Lloyds Bank, said: “Increasing pressure for British businesses to hold more working capital has to date largely been driven by economic growth fuelled by the fall in Sterling. But, if there were any economic obstacles on the horizon this could be a double-edged sword.

“By locking up cash in this way, it stops investment in other more productive areas of the business, whether that be investing in new people, creating new products or targeting new markets.

“With as many as one in three businesses telling us that their greatest concerns for the next 12 months are economic uncertainty or a fall in sales, this reliance on future growth prospects is concerning.”

The findings come from Lloyds Bank’s second Working Capital Index, a six-monthly report that uses Lloyds Bank Regional Purchasing Managers’ Index (PMI) data to calculate the pressure British businesses are under to either increase or decrease working capital.

Working capital is the amount of money that a company ties up in the day-to-day costs of doing business. Growing businesses tend to use more working capital, while pressure falls when firms realise they are facing challenges.

The current Index reading of 108.0 is an increase of almost four points, from 104.1 at the end of 2016, and is just below the highest point seen since the research started in 2000.

The Index highlights that with the UK’s domestic outlook looking weaker, businesses are increasingly going to need to rely on exports for future growth.

While the current relative weakness of Sterling makes conditions for international trade benign, the practicalities of exporting mean that it often places even greater stress on working capital through shipping times and slower payments.

Mr Walker added: “Whether businesses expect to grow through exporting, or they anticipate challenges due to weakening domestic demand, UK firms could benefit from the operational efficiency and cash flow boost that comes from working capital improvements.

“In the past, previous highs in this Index have coincided with improving financial conditions. The fact that the Index is currently climbing while financial conditions remain relatively low means businesses are taking on more and more risk.

“Our experience is that businesses that undertake a programme of working capital improvements can typically release around three to five per cent of turnover in additional cash, allowing them much more freedom to invest in growth, trade internationally, expand their product set or to give themselves a buffer to see them through more troubling times.

“But doing so successfully isn’t easy. It requires change across a number of business functions, and so the time to undertake that work should be done ahead of embarking on further growth, a new exports programme, or before any possible future storm hits.”

Manufacturing under pressure

The manufacturing sector has been a source of hope and opportunity for the British economy in recent months as the fall in Sterling made British manufactured goods more competitive overseas.

But the sector’s growth, together with rising import costs and pre-purchasing of materials in expectation of inflation, has pushed the sector’s working capital index to 126.1, which could be hampering growth amongst manufacturing businesses.

This compares with readings of just 105.0 and 104.8 in the services and construction sectors respectively.

Regional variations

The pressure to increase working capital grew in every region apart from the East of England, where the Index fell from 112.0 to 107.8. Although, the East of England still saw high pressure on businesses to hold more working capital.

Scotland, where a reading of 99.5 indicated pressure to reduce working capital six months ago, saw the biggest increase, with the Index reading rising more than five points to 105.2.

Wales remained the region with the highest pressure to increase working capital with the Index climbing from 113.7 in April to 114.3 now.

(Source: Working Capital)

We gave our Software Engineers and Analysts a list of stereotypes around working in Finance. Here's how they reacted.
More information: http://www.ubs.com/careers

With the impending prospect of Article 50, how should the savvy prepare? Here Finance Monthly benefits from an expert answer, authored by István Bodó, Amaury DeMoor and Karan Lal of REL, a division of The Hackett Group.

The British referendum vote makes a mark in the European Union’s history, as the United Kingdom has taken the decision to leave the EU and will become the first nation to ever leave the union.

Brexit’s impact on remaining EU countries

This slightly unexpected outcome of the vote prompted jubilant celebrations among Eurosceptics around the continent and sent shockwaves throughout the global economy causing a new “Black Friday” across the major European financial markets. Stock exchanges in Germany and France ended down 6.8% and 8% respectively. Since the British, Italian and Spanish stock markets also had losses above 12%, this was the worst drop in a day since the 2007-2008 global financial crisis.

Though financial markets soon recovered, uncertainty remains amongst both the European Union and United Kingdom, as a big question mark lies on the future of their relationship and the synergies that lie within.

From the perspective of the remaining EU countries, the United Kingdom has been a very strong and influential member. The UK is often considered to be the bridge between the EU and the rest of the world due to its historic Commonwealth and political strength around the world. With this relationship now at risk and major decisions in the hands of politicians, this is creating nervousness amongst organisations. Failure to sustain current relationships and trade deals could be damaging for both sides.

Many argue that the EU is a more important trading partner for the UK than the UK is for the EU. However, with the UK’s strong demand for imports from the EU, with special emphasis on the pharmaceutical and manufacturing industry, this is an important factor that needs to be taken into consideration.

In value terms the trade surpluses with the UK are concentrated in a small number of EU countries – Germany, in particular, as the UK is its third most important business partner with 120 billion euros in different goods and services being sold to the UK. Trading with the UK after a formal Brexit may become difficult and more expensive for German and other European companies as new customs and regulations may be implemented. This could have significant impact on the German automobile and engineering industry, considering that every fifth car sold abroad goes to the UK.

Whether the long-term impact of Brexit will cause a shift in European Union business to the rest of the world or will result in a genuine loss in business is unclear for the time being. It is therefore imperative for organisations to be strategically flexible and prepared for either outcome. By capitalising on opportunities to release working capital, organisations can weather economic downturns, as well as fund new opportunities that may be on the horizon.

Importance of working capital and cash

Working capital is the amount of cash that is tied up in a company’s day-to-day operations. It is important that all three components (accounts receivable, accounts payable and inventory) receive focus to realise maximum cash benefit opportunities and identify and tackle inefficiencies in processes and procedures (Fig. 1).

Organisations across Europe have significant opportunities, not just to strengthen their balance sheet but also to move towards world-class working capital performance – in fact, companies could release more than 229 million euros within their receivables, payables and inventories per 1 billion euros of sales.

By highlighting days inventory on-hand and days payables outstanding, median- performing companies have an above 50% improvement opportunity, which can yield and support substantial cost optimisation opportunities, whilst also releasing cash to help fund acquisitions, product development or other investments (Fig. 2).

Another important aspect of shifting from median performer to world class is the higher focus on continuous improvement and sustainable results that becomes part of the company culture, making the whole organisation more effective and efficient. Companies achieving world-class working capital performance are likely to be high performers in other operational areas as well. They are the businesses that not only respond and adapt to changes in competition and customer preferences, but they are also leading the change and capitalising on emerging growth opportunities.

Although the unknown potential impact of Brexit cannot be directly compared to the global financial crisis of 2007-2008, key lessons can be learnt from that period, as poor total working capital management was a key factor in several liquidations. In these situations, cash reserves were not sufficient enough to run operations and whilst at the same time banks were reluctant to increase credit.

How will Brexit shift business?

Britain leaving the union could lead to a shift or loss in business for EU companies. The pound falling to historic low levels against the euro has significantly dented the purchasing power of the United Kingdom. It is for this reason that many UK companies will look to source domestically, as well as outside Europe in an attempt to hedge against the fall in pound sterling.

Although Article 50 has not formally been put into motion and formal negotiations with the EU have not yet begun, the UK already is turning towards her Commonwealth, as Prime Minister Theresa May has already visited India in late 2016. The British prime minister was also the first to formally visit US President Donald Trump in January 2017, as part of the special and historical relationship both nations share with each other. Meanwhile, the EU has also turned its attention to the rest of the world by entering a free trade agreement with Canada in October 2016.

With such sudden political shifts, European-based companies are at potential risk to face a loss of business, as the majority of UK imports currently come from Europe, with Germany, Netherlands and France being the top three exporting countries to the United Kingdom (Fig. 3).

Whether Brexit translates to a shift or loss of business for European-based companies, in either scenario it is imperative for businesses to have a well-managed working capital programme and a well-embedded cash culture that enables smooth adaptation to the new economic environment Europe will face. Achieving a healthy level of total working capital proves to be the less risky option, especially in times of economic uncertainty, and provides companies the ability to stay flexible and resilient against sudden changes. Therefore, initiating total working capital improvement programmes covering accounts receivable, accounts payable and inventory are strongly recommended.

Bracing for industry impact

London is heavily backed to remain the top financial centre in Europe despite exiting the EU. This is largely due to the fact that other European cities such as Frankfurt, Paris and Dublin simply do not have the capacity, resources, culture and educational infrastructure to become a London-like city. With the United Kingdom’s strong political connections to the rest of the world, London also remains the stronger candidate for foreign capital investment.

It is for this reason that the shift in jobs and business is likely to remain minimal for the financial services industry but might be different for core European industries such as manufacturing and pharmaceuticals. With the United Kingdom largely importing from both the manufacturing and pharmaceutical sector (Fig. 4), these industries, in particular, are likely to face either a decrease or loss in business, assuming the risk that the United Kingdom will no longer be part of the single market and the continuous weakening of the pound.

Due to its capital intensive nature and sensibility to economic swings, the working capital requirements of the manufacturing and pharmaceutical industries are generally higher in comparison to industries such as consumer goods and services. This is largely driven by the complexity of the supply chain and the varying working capital performance across sub-sectors, such as plastics, metals, machinery, fabricated products, building products, etc. In addition, the high cost of goods sold directly affects payables and inventories, making working capital performance even more important. To withstand the potential impacts ahead, detailed analysis and assessments must be made in the receivables, payables and inventory areas in order to implement strategies to optimise working capital and use the extra cash to cushion volatility.

Low inflation within eurozone

On the path to recovery from the global financial crisis, interest rates in the eurozone have hit their lowest point in recent history. The decisions made by the European Central Bank (ECB) and backed by ECB president Mario Draghi are largely driven to encourage borrowing across the eurozone, in order to grow and stimulate the economy following the financial crisis. Though the eurozone has by a close margin recovered from the crisis, interest rates have remained low due to inflation targets of 2% not being met.

The currently low price of oil is a major contributing factor to low inflation, as oil is the eurozone’s biggest import; thus, a future increase in oil prices could put the eurozone back at higher inflation rates and increase the likelihood of higher interest rates.

With interest rates currently low and business loans looking attractive, many businesses take the easy route to borrowing money, instead of optimising their working capital. Though many organisations benefit from such a low interest climate in the short run, working capital optimisation proves to be a more sustainable path for the long term, as it shows managerial efficiency, attracts investors and, most importantly, frees up cash. Having the ability to free up cash by improving internal processes always adds value, as it allows organisations to eliminate inefficiencies and remain flexible and dynamic in facing economic uncertainties such as Brexit.

Summary

The unknown impact that Brexit will have on the European Union and the United Kingdom further adds to the uncertainty and nervousness of businesses affected by the move and may lead to delays in investment decisions. Though the UK will hope to retain access to the European Common Market, major European companies will be watching closely as this could have significant impacts on the products they export to the United Kingdom.

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