In this week’s Money Matters – Ask the Experts column, from Goldwyns Accountants, based in Southend, Thomas Robinson, a chartered accountant and manager at the company at the company, provides his thoughts on trouble-shooting a fall in profits by asking ‘could it be a staffing issue?’.

Dear Goldwyns – I read a previous column about identifying financial problems, but I still feel my business should be doing better. Are there any other areas I need to consider?

Thomas Robinson explains:

When looking at a business, it is easy to just look at numbers and chart movements, but sometimes you have to put the results to one side and instead look at the resources you have. For many businesses, their most important resources are the people they employ.

The news media often report on high street brands or large corporations which have gained reputations for poor treatment of staff; reputations which can prove easy to acquire but hard to leave behind. Conversely, names such as Richard Branson and John Lewis Partnership are raised when thinking of leadership styles that create a workplace culture that makes staff feel more than just employees; but such cultures are a reflection of years of work.

There is no ‘one-size fits all’ approach in staff management but the best leaders are those who can alter their style to any situation. Some styles may be a reflection of circumstance: some trades are so specialised staff have little alternative but to endure any directive handed down from senior management, whilst others experience high levels of staff turnover, making it hard to get to know those you employ. But how much these factors are true obstacles and how much they are convenient excuses is for each individual employer to decide.  

It is especially important to consider your staff when making any business decision which will cause significant change for them. Most directors are used to having to ask the tax implications or final cost of any new strategy but only the best remember to also consider who it may affect and how any transition can be made to run as smoothly as possible.

Simple steps such as keeping staff informed of future plans and allowing them opportunities to speak freely and ask any questions, will help to maintain morale. It only costs a little of your time and you may find that people have useful suggestions to improve efficiency. Similarly, office socials where all levels of staff mix do not have to be limited to the annual Christmas meal.

Also, ask yourself how well you actually know the staff you see most often – do you know anything of them, their families or their interests outside of work? A boss who takes an interest, however brief, is likely to be spoken of kindly, whereas a director behind a closed door who never mingles with those below them further entrenches any feelings of “us and them”. Combined with understanding more about how staff view their roles in the business, this process can really help improve profitable outputs.

The fact remains though; a happier workforce is almost always a more productive workforce. Some bosses may treat staff well due to principles, some may only do it because of the return it provides, but regardless, a business owner needs to ask if they can afford to have an unhappy workforce.   

This article was first published in the Southend Echo on 19 September 2017.