Euro Projects Recruitment Business Leaders Zoom Call
For Manufacturing, Engineering, Technology, Transportation & Logistics Professionals
Summary of Key Points: 26th May 2020
- Furlough Update
- The furlough forecast is more details later this week, possibly on Thursday with anticipated changes including:
- Partial furloughing and it will be between 20 and 30% contribution from employer
- CBI this morning mention that whilst full furlough will run to end of July and will be replaced by partial furloughing as planned, the partial furlough may be brought forward to encourage people back to work sooner.
- 1.2. Detailed clarification on Government Job Retention Scheme is regularly updated but not often advertised, keep looking on Government UK website and follow Irwin Mirchell Updates:
- Financial Support:
- David Tomlinson – HSBC – funding landscape – bounce back sub £50k loans – unprecedented / significant demand – close to meeting it now – money gone to the market at a very significant pace
- A second peak in CBIL (Coronavirus Business Interruption Loan) requests anticipated as people return to work and working capital requirements increase.
- Recommendation is to apply ahead of needing funds before funding closes in September. So far 2500 SME’s have applied locally with HSBC and CBIL applications from 35%. 40% of bank customers not requested any funding yet but next 6-8 weeks expected to do so.
- The level of detail required – integrated P&L & Cash flow forecast, with the ability to repay on the level of profitability on forecast for a year hence.
- Main criteria are eligibility and viability – Most applicants are usually eligible. Viability is more subjective, if your business was able to repay a loan pre-Covid19, it is assumed it will be ok post Covid19.
- Those businesses who provide good financial data and forecasting and Integrated cash flow modelling are always recommended for support.
- SME’s require less detail but needs to be broadly realistic
- Normal funding request £250,000 as personal guarantee kicks in after this.
- Largest funding provided by his office so far is £2m for a business with £17m t/o
- Most businesses looking to cover fixed costs for 6 months give or take.
- Useful resources for preparing your funding application include British Business Bank website:Or, seek a professional advisor or accountant to make your application (Euro Projects Recruitment have several Interim FD’s currently working on loan applications, call 01530 833825 for an introduction).
- In your forecast you don’t need to build in repayments for first year as loan doesn’t need paying back in first 12 months.
- Returning to work & Employee Safety:
- Stuart Caller MD of Korbond, have continued working as products in demand for crafting, wellbeing and make do and mend. They supply major retailers and fortunately revenues not dramatically impacted. They furloughed quickly as some roles diminished.
- They communicated very openly with those that were staying and not and reasons why. They are all about supply chain accuracy and operational efficiency. They see this an opportunity to come out stronger, faster more agile.
- They have reviewed each member of staff and if that role is diminished to look at redeployment.
- Redeployment is a spotlight magnifier to look at where value add is actually taking place. Whilst some roles may become less important, they are not necessarily looking at redundancies but how to reshape the business. A unique opportunity to review business and challenge are we fit for purpose? All businesses have lag / deadwood / inefficiency – This is great opportunity to address it.
- Practical measures to get people back onto site have followed a Covid19 return to work programme of risk assessments, Standard Operating Procedures, Government guidelines but also best practice from peers and what employees want.
- Resulted in a full re-induction of all employees into the new world. Reintroducing any previously furloughed employees to a Covid19 Secure environment. It has been like on-boarding a new employee
- Maintaining the Mental Health of Furloughed Employees
- Joanne Bekis, Change Management Consultant and Mental Health First Aider with Pick Everard, employing over 500 people across 13 sites.
- Adopting a Person Centred approach. Created a People Hub on their intranet where all employees, including those who are furloughed come together and share whatever we are doing; DIY, fitness, volunteering, crafts etc.https://www.linkedin.com/feed/update/urn:li:activity:6668084935640915968/
- They receive weekly line manager calls a regular briefings from their MD.
- As a predominantly public sector contractor, they are keeping everyone informed about contracts, the 5 year strategy and taking an approach to look at agile working.
- Having spent years recruiting good talent – furloughing is there to retain their talent, with people being their biggest asset and the team who will drive the business forward.
- When bidding for work, how they treat people now will be closely reviewed by their client base.
- You don’t have to be a big business to be people orientated
- Businesses need to maintain an awareness of the mental health of their furloughed employees and bring unity between furloughed and non-furloughed employees to avoid a them and us. The message has to be “Be a team. We want to be strong with all the change going on and build an “Everybody matters” ethos.
- Upgrading Talent
- Euro Projects Recruitment now seeing an upgrading of talent, Some people are being redeployed but this crisis has exposed some gaps. The crisis has allowed businesses to recognise if they have the right people in place. In particular right now Finance and HR are the key frontline roles.
- A number of businesses spotting chinks in their armour are seeking to upgrade now, so they will have the right people to help lead them out of the current crisis and into the future.
- We are also hearing that many businesses with large reserves are sitting on war chests of cash, waiting to see where the bottom of the market will be (which will be more apparent after furloughing support is withdrawn) to then engage in company purchases / acquisitions etc. M&A activity will increase the likelihood of interim roles in HR, finance, sales, systems and commercial executives.
- The recovery is expected to be driven by a large contingent of people on a fractional or partial basis.
- If you haven’t already claimed your FREE copy, Euro Projects Recruitment is also delighted to bring you a new resource: https://www.europrojects.co.uk/covid19-business-revival-plan
Euro Projects Recruitment, Supporting you and your business until you are ready to recruit again
Euro Projects Recruitment, 1 Cartwright Court, Cartwright Way, Bardon Hill, Coalville, Leicestershire, LE67 1UE