Taking on new staff has become a top priority for businesses as they continue to recover from the imact of the pandemic, according to a survey conducted by Time Finance, the Bath-headquartered alternative finance provider.
It found that one in three firms were planning to expand their workforce, with 90% aiming to start the recruitment process within the next six months.
The findings have brought a welcome degree of optimism following the end of the government’s furlough scheme on September 30.
Alongside recruitment, the survey's respondents also cited marketing (30%) and new products and services (27%), as well as operational and technological advancements (21%), as priorities for immediate investment.
Ed Rimmer, chief executive officer of Time Finance, which offers a range of alternative finance solutions, including asset, invoice, loans and vehicle finance, said there had been a real concern about a spike in unemployment as furlough ended.
“There are, however, some clear indicators of business confidence that paint a much more optimistic picture," he said.
“A considerable number of businesses are focusing their time and resources on the future and with a third of businesses planning to invest in new personnel, the coming months will bring an invaluable lifeline to those without work.
“It is encouraging that our survey mirrors new figures from the ONS that have shown that UK job vacancies have reached a 20-year high of 1.1m.
“To me this suggests that the real challenge won’t be unemployment, but how businesses will compete to recruit the available workforce.”
Mr Rimmer, pictured, said the survey gave a powerful glimpse into the shift in business confidence over the past few months.
The previous survey in July had shown that businesses’ plans for borrowing had a greater emphasis on stablising cashflow and now, in just a few months, this has shifted towards investment for growth.
“Respondents to our recent survey described their current outlook as optimistic despite much of the government’s financial support drawing to a close, and to me this represents an important shift away from survival mode,” said Mr Rimmer.
“Although recruiting new staff has become a top priority for businesses, interestingly many also have their eyes on additional means of growth, giving us a more detailed picture of businesses’ expansion strategies.
“Financial solutions therefore need to respond to these nuances. Finance should never attempt to provide a one-size-fits-all approach and our survey shows us that now, more than ever, businesses need a broad range of flexible finance solutions that can be tailored to their investment plans.
“There are, of course, going to be some challenges along the way. Investment in new personnel will be no mean feat when the UK is also facing a stark shortfall in the workforce, particularly in haulage, retail and many construction trades.
“A lack of available talent is a huge obstacle the UK faces and I would caution that alongside planned investments must come investments in training to ensure we up-skill at the rate UK businesses require.”
Time Finance offers a range of alternative finance solutions and in June this year became an accredited lender under the government’s Recovery Loan Scheme via the British Business Bank.
Since its launch in 1998 it has grown rapidly and has provided and arranged £150m of funding annually to UK businesses to support their growth.
As well as Bath it has offices in Cardiff, Abingdon, Manchester and Warrington.
