GATELEY HOLDINGS PLC (LON:GTLY) REPORT REVEALS RED TAPE TOP OF CONCERNS FOR UK BUSINESSES
Increasing regulation and the negative impact it will have on business over the next three years is the top concern for company bosses, a new report has revealed.
Listed law firm Gateley Plc’s ‘How UK businesses can successfully transform’ report found that 94 per cent of companies surveyed said red tape is the biggest threat to their business. Of the 94 per cent, 36 per cent believe it will have a major impact.
The prospect of potential interest rate increases over the next three years was the second biggest concern (83 per cent), followed by a downturn in emerging markets (78 per cent).
Nick Smith, corporate partner at Gateley Holdings Plc London office, said: “Red tape has long been a major issue for businesses in the UK and this doesn’t look like changing any time soon, with concerns remaining over the negative impact it will have on business in the medium to long- term.
“However, with much of the regulation set by Brussels, Britain’s exit from the European Union could represent an opportunity to ease some of the bureaucratic burden on businesses.”
According to the Gateley report, more than a third (35 per cent) of those surveyed said investment in people was a key strategic priority in 2016. However, businesses are still finding it difficult to recruit the right people, with filling job vacancies and staff retention cited as two of the main barriers to implementing strategic priorities.
Nick said: “Companies are placing great importance on investing in people to successfully drive change within their businesses. However, the skills gap and difficulty in recruiting the right people for the right job continues to be a major issue.
“For businesses struggling to keep up with the pace of change in their sector, recruitment will be a bigger challenge in the future. Talent is attracted to dynamic businesses, which creates a negative spiral for those that are underperforming.
“Resistance to change and employee engagement/motivation were also cited as two of the main barriers to implementing strategic business priorities.”
Gateley’s ‘How UK businesses can successfully transform’ report provides an insight into how business leaders across the UK are implementing change within their own businesses and the challenges they face.
The specially commissioned report explores a number of themes including how companies set strategic priorities, achieving growth, transforming ways of working, and breaking down the barriers to change.
When asked about setting strategic business priorities, 50 per cent of respondents said sales growth and profitability is their main aim over the next 12 months, with 47 per cent citing it as a priority over the next three years.
Differentiation and productivity were also cited as main priorities over the next three years but the core focus of many businesses remains, unsurprisingly, on prioritising sales growth or profitability over the next 12 months.
Other key findings in the report
- Of the companies surveyed, 40 per cent claim they are transforming faster than the average in their fast moving sector, while 36 per cent of companies admitted to just keeping up with the average pace of
- 44 per cent of companies believe they will grow a lot faster than the average growth rate in their sector over the next three
- More than half (51 per cent) said regional devolution will have little or no impact on their
- 69 per cent of participants said they were very (33 per cent) and extremely likely (36 per cent) to recommend the company’s primary law
- Inadequate resource and cost/budget constraints are the most commonly encountered barriers to business
