For many businesses in the UK, 2022 might be a rough year as the Bank of England (BoE) has predicted an incoming recession. Due to rising inflation, many households and companies have had to cut back on spending, which obviously poses a problem for the wider economy.
If you want your agency to thrive during difficult times, making your company more flexible and productive is essential to stay one step ahead of your competitors. This is why reinvesting profits back into your business can be hugely useful.
Read on to find out why digital agencies can’t afford not to invest in their workers, and some useful tips for how you can unlock your team’s full potential.
At the start of 2022, the UK was on track for strong growth as the country finally emerged from the coronavirus pandemic. According to the Guardian, the International Monetary Fund predicted that GDP would rise by 3.7%, the joint-highest level of all the nations in the G7.
However, in the past few months there has been an unexpected spike in the cost of living. Figures from the Office for National Statistics (ONS) show that the Consumer Price Index (CPI) rose to 10.1% in the year to July 2022.
This surge in the rate of inflation has forced many economists to reassess their predictions, and according to the Guardian, the economy is now predicted to contract by 2.1% by the end of 2023.
During economic downturns, companies are under tremendous pressure as consumer spending falls and they find themselves in fierce competition to win customers. If you aren’t able to adapt your agency to meet the new challenges, you run the risk of going under.
This is why it’s important to ensure that your team are able to work to their full potential.
If you want your agency to stay ahead of the competition, investing in your staff can be a great way to make your business more adaptable and productive.
By offering your team useful specialist training, fostering an employee-focused workplace, and ensuring your team are properly rewarded for their hard work can be hugely beneficial. While these measures may increase costs in the short term, they will help you build a much stronger business over time.
For a start, offering opportunities for further training can have several useful benefits. It can enable your employees to become much more specialised in their role, which can lead to them producing a higher quality of work.
When competition is fierce, this can make a huge difference when a potential customer has to choose between working with you or a rival.
Furthermore, offering training to your team can help them to have a well-rounded skillset. This means that when an employee takes some leave, or is sick, their colleagues can more easily cover for them to absorb their workload.
Additionally, employees appreciate the investment in their personal development, and so may be more likely to stick with your business if you’re providing useful ongoing training aligned with their career goals.
It’s also useful to build an environment in your office that helps your team work effectively. For example, while cubicles can offer more privacy when a team member needs to focus, an open office plan can be better for prompting discussions, which can be valuable in creative industries.
Of course, there’s no “one size fits all” solution to what makes your employees more productive at work. That’s why asking them directly, such as with an annual survey, can be useful.
A third great reason to invest in your employees is that as the word spreads, you’ll have an easier time attracting new talent when you want to grow your company. After all, people would rather work for a boss who cares and gives them the opportunity to develop their skills than one who doesn’t.
With the prospect of a recession on the horizon, it’s never been more important to invest in your business and make sure your team are working as effectively as they can.
In an economic downturn, when competition is cut-throat, inefficient businesses will fall by the wayside but the ones remaining will have massive potential for growth when the crisis blows over.
Of course, while boosting your productivity is a crucial part of building a business, it’s also important to protect it from unexpected shocks. This is why financial protection can be beneficial.
When you work with a broker, we can help you to fully analyse your business’s needs and find the cover that’s right for you. Knowing that you’re protected against whatever the future may hold can give you one less thing to worry about, so you can focus on growing your agency.