< Previous28 Business Link www.blmforum.net 2022 BUSINESS PREDICTIONS Dr Edward Ziff, Chairman and Chief Executive of Town Centre Securities PLC One of my predictions last year was that we hoped that the general public would return to the high street to support local and national businesses and for us to see a return to normality as soon as possible. Whilst we are still a far cry away from ‘normal’, it is encouraging to see the high street opening with many of our hospitality tenants flourishing as customers crave an experience finally outside of their own homes. With this in mind, the government, local authorities, local employers and large organisations all have a responsibility to encourage their staff to safely return to the office to fill our public transport, our shops, restaurants and coffee shops and encourage the collaboration and innovation that fuels our growth and builds our future. Town Centre Securities remain committed to our strategy and will continue to actively manage our assets, sell certain retail assets to maximise our available capital, invest in our development pipeline and acquire assets to improve our portfolio. COVID-19 of course remains the big risk as any further lockdowns would create further damage, and the need for the Government to communicate its plans clearly in advance is crucial. I am confident that our focus on the two growing and exciting cities of Leeds and Manchester, where we are helping to create a sense of place and purpose for living and working, will enable us to generate value for all our stakeholders as the world returns to normality. As we take further steps towards returning to normal life, I wish everyone the very best for 2022. Graham Edward, Managing Director of Edward Architecture Our experience of the property sector looking forward to 2022 remains buoyant and will hopefully remain so whilst bank rates remain low. A recent RIBA study has found that UK based Architecture workload remains steady in key sectors like infrastructure, residential and logistics. At Edward Architecture we have a solid and exciting order book for the next 18 months. The industry is, however, having to work through supply issues in construction, materials, consultancy, legals and the planning system, which will hopefully ease as we cope with some industry inertia brought about by Brexit and Covid. To be resilient to this continued workload and retain capacity, consultancies like ourselves are working hard to both retain staff and train new blood. I think the lockdown has let down a generation of graduates, by a reluctance to employ and too much remote working. We have invested in staff training and have taken on more graduates and try to give them good office exposure. Consultancies like ourselves have also introduced flexi time and hybrid office / home working to give an optimum work life balance and a good learning environment. Another evolution as we go into the new year is digitalisation. Clients and consumers have a heightened expectation for the digital experience, much more design is BIM based and led by ‘golden thread’ central information software products such as Operance, which collates all design and build information right through to a built package stage. 18-21.qxp_Layout 1 10/01/2022 07:56 Page 3www.blmforum.net Business Link 29 2022 BUSINESS PREDICTIONS Richard Heslop, Managing Director of DE Commercial The first half of 2022 will be dominated by Covid, supply chain issues and the increasing costs of construction. While Covid has been with us for 2 years now, the latter two came to the fore in the second half of 2021. What is certain going forward into 2022 is the uncertainty created by these issues. Having said that the commercial property market remains resilient. We expect to see the warehouse/industrial market continue to make the gains witnessed over the past 12 months which has seen development land deals exceed £1million per acre with freehold and leasehold values gaining more than 20%. A cloud will remain over the office market which is now dominated by “work from home.” Going forward we expect more companies to develop their strategies of employees mixing home and office working. This will have a dampening effect on the growth potential for this market. The investment market remains robust and the supply shortages will continue to hold back this sector at the smaller end. Property yields continue to outstrip other asset classes and private investors will be loathe to sell if there is no alternative home for their capital. Demand from institutional investors, particularly for warehousing/distribution buildings, will ensure yields harden further as they look to strike deals off plan or during the early stage of construction. With regard to the retail market, the two overriding factors affecting demand will continue to be the high level of rates payable coupled with the inexorable rise of internet shopping. As work from home spills over into 2022, the internet will continue to win out. Eamon Fox, partner and head of the office agency department at Knight Frank The death of the office in Leeds is a myth. The market has proved incredibly resilient in the midst of the pandemic and I am looking forward to 2022 with genuine optimism. Headline rents are currently £34 per sq ft and, all being well, I can see them hitting £36 per sq ft by the last quarter of next year, given the high standard of some of the new office space which is coming on to the market. There is a flight to quality, which has accelerated during the past 12 months, as occupiers look for space in which employees feel comfortable and safe. The long-awaited arrival of Channel 4 in Leeds has proved to be a tremendous boost to the city, underlining its potential. The knock-on effect is already being felt with Leeds becoming a magnet for bright young tech, media and creative companies, with state-of-the-art buildings such as Platform, 1 City Square, 34 Boar Lane and Concordia Works welcoming some of the best in class. The education and academic sector will also have an increasingly strong presence in the city centre, with students moving in from the universities for vocational reasons. 2022 promises so much. MRP’s City Square House, next to the station, is going to be another game-changer, with 83,000 sq ft already pre-let to leading global law firm DLA Piper, but there is still another 55,000 sq ft of Grade A brand-new office space available. Meanwhile prestigious developments by Bruntwood, Boultbee Brooks, Kinrise, CEG and Opus North will underline Leeds’s burgeoning reputation as the most progressive city in the north of England. 2022 will be the year of the true pre-let. There are a number already in the making and there will be some wonderful news to share next year. © stock.adobe.com/metamorworks 18-21.qxp_Layout 1 10/01/2022 07:56 Page 422 Business Link www.blmforum.net EMPLOYMENT LAW As the connective tissue between employers and employees, employment law is never static. This relationship is constantly evolving as the wants and needs of workers evolve, bosses must therefore remain vigilant of the changes taking place in terms of legislation, but also of the issues impacting the lives of their staff. One of the big changes on the horizon is the forthcoming Employment Bill. The intention is to make provisions about the rights of workers on issues such as negotiating pay and joining trade unions and employee associations. Moreover, it will make provisions about the employment rights of members of the armed forces and about employee representatives on company boards. There’s also an issue of semantics, with the bill intending to amend the definition of ‘worker’ to provide “a single employment status for workers and employees for the purpose of employment rights and employer responsibilities in the workplace.” Inspired by the bill – which, as of writing, is still being read in the House of Commons – companies can use the opportunity to be more accommodating when it comes to employee benefits. Not only will this make a company a more attractive prospect for new employees but will boost staff retention and help make public policy fit for modern times. At a time when employees are letting flexible hours and homework act as their compass for new careers, this approach can prove incredibly valuable. Parents make up the majority of the nation’s workforce, but the system currently favours workers without children. Data from the Office for National Statistics based on Labour Force Survey and Annual Population Survey found that, since 2000, fathers have consistently had a higher employment rate than men without dependent children. During this period, the rate of mothers in employment has overtaken the employment rates of women without dependent children. Almost 28.5 per cent of mothers with a child aged fourteen years and under said they had reduced their working hours because of childcare reasons. The proportion of parents who faced an obstacle fulfilling responsibilities decreased as the age of the child increased; from 34.9 per cent of parents whose youngest child was aged between zero and four years to 20.4 per cent of parents with a child aged eleven to fourteen years. Now, with the Employment Bill in Parliament, there are calls for extending statuary sick leave. In a recent survey undertaken by Mumsnet in partnership with Labour MP Harriet Harman, more than 1,000 parents across the UK were asked how they managed when their primary school aged children were ill before the pandemic. Eighty-eight per cent of parents reported having taken time off work to care for a sick primary COVID as catalyst Whether it’s bosses mandating that their staff be double jabbed, the right to request flexible working, or calls for extending statutory sick leave, businesses have many employment law issues to contend with as we continue to transition out of the pandemic. 22-24.qxp_Layout 1 10/01/2022 07:58 Page 1www.blmforum.net Business Link 23 EMPLOYMENT LAW school aged child. Of these, thirty-nine per cent have taken holiday/annual leave; twenty-nine per cent have taken paid leave with twenty-nine percent having taken unpaid leave; ten per cent have reduced hours or dropped work; seven per cent have taken sick leave, and two per cent have left their job. It will come as no surprise to learn that parents largely supported provision to be able to better manage their children’s sick days without losing pay or holiday time. When asked if they would support extending statutory sick pay to cover a parent when a child of primary school or nursery age is sick, only six per cent opposed it. “Public policy is completely out of date,” says Harriet Harman MP. “Mothers are working now and not at home to look after a sick child. You can’t leave a young child on their own when they’re sick. But there’s no right to take time off, let alone sick pay. Of course, this hits hardest at those on lower paid jobs. The forthcoming Employment Bill is our chance to insist that we put this right.” Ensuring that employment law is fit for purpose and reflects the reality of modern life is never-ending. The pandemic led to a spike in the number of people working from home and, whether due to the flexible furlough scheme or because of other measures put into place by employers, many staff experienced their first taste of flexible working. In many cases, these provisions have become permanent and now people are seeking homeworking and flexible working when looking for and starting a new job. Research from the Chartered Institute of Personnel and Development (CIPD) found that while the pandemic has driven an increase in remote working, forty-six per cent of UK employees still do not have access to any form of flexible working in their current role. That same research found that those without flexible 24 Á © stock.adobe.com/successphoto 22-24.qxp_Layout 1 10/01/2022 07:58 Page 224 Business Link www.blmforum.net EMPLOYMENT LAW working are around twice as likely to be dissatisfied in their job compared to those who do. The association found that flexible working provided clear benefits to both employers and employees from improved wellbeing and work-life balance to greater productivity. Flexible working was especially useful for parents who are able to take their children to and from school or nursery whilst also still being able to get their work done. Against this backdrop, CIPD is calling on organisations and government to make the right to request flexible working a day-one right. “Flexible working practices in the UK aren’t fair,” the association said. “Those in lower paid, more manual occupations often don’t have access to the same flexible working opportunities as those in higher paid, managerial professions.” At present, UK law states that employees can only request to work flexibly after twenty-six weeks of employment, with a limit of one request per twelve months. To try and change this, the association launched its ‘Flex from 1st’ campaign in February 2021 (when the UK was a month into its third national lockdown). In short, the campaign is encouraging employers to support flexible working for all and the right for employees to request flexible working from the first day of employment. In September of that year, the government published a consultation on making the right to flexible working a day one right for all employees. Although the rise in interest in flexible working can largely be attributed to the pandemic, it isn’t itself a COVID issue. Yet there are many coronavirus concerns when it comes to employment law, especially where vaccination is concerned. At the time of writing, the only employees that are legally required to have both doses of the COVID-19 vaccination are those working in care homes. Yet companies in every sector are keen to keep their staff safe and avoid any disruptions and downtime caused by potential outbreaks. From that perspective, bosses may be keen to motivate staff to get vaccinated. There have already been cases of bosses taking provisions to get staff jabbed (although, to date, more than 49 million people in the UK have received at least one dose of a coronavirus vaccine). This includes new terms in any new employment contract or contract renewal stipulating that the employee agrees to be vaccinated with the advised two jabs as a condition of their employment. However, employers in sectors outside of care homes risk tribunal claims if they make vaccinations mandatory amongst their workforce. There are several legal grounds that staff could resist mandatory vaccinations including human rights and indirect discrimination. Bosses therefore need to be careful in how they approach staff with this issue. Employment law provides a framework to foster and support communication between employers and their staff. Perhaps more than any other time in recent decades, both bosses and staff have been pressured by a seismic shift in attitudes, wants and needs. The forthcoming Employment Bill should help to address these issues, but it won’t be a cure-all or a silver bullet. Businesses can themselves be vehicles for change in this regard. As can be seen in almost every other area of business – where one goes, others will follow. © stock.adobe.com/V italii V odolazskyi 22-24.qxp_Layout 1 10/01/2022 07:58 Page 3www.blmforum.net Business Link 25 NEW YEAR, NEW SUPPLIERS With so much to do in the new year it can feel daunting to look at suppliers, and easier to just go with what you know, but that attitude could lead businesses into trouble. Loyalty is its own reward, or so the saying goes, but 2021 has been a difficult year due to COVID-19 and lockdown, and as we start 2022 in another lockdown the question has to be asked – should we hold to our old suppliers for loyalty’s sake? It’s not always an easy thing to assess. Straight back after the holidays, most businesses already have a hundred and one things to get onto in the new year and looking at all your suppliers may seem an extra task unworthy the effort. That is flawed logic, however. We all know that we should shop around for car insurance each and every year, and that we should never let it tick over to an auto-renewal as we will lose money. The same goes for phone contracts, broadband and other household bills, so why is it that so many businesses are content to do the opposite? © stock.adobe.com/Krakenimages.com New year, new supplier 26 Á 25-27.qxp_Layout 1 10/01/2022 07:59 Page 126 Business Link www.blmforum.net NEW YEAR, NEW SUPPLIERS For the most part, it’s all about stability. The years past have been choppy to say the least and it’s easy to see why businesses might appreciate a less complicated relationship with suppliers. For many, there are also good relations with suppliers to consider, perhaps friendships or times where their directors have wined and dined you. Keep in mind that this is intentional, however. We all do it – you may as well! Key customers are worth taking the time to ingratiate yourself with, and it’s ultimately nothing more than a means of insuring loyalty. You should never feel beholden or indebted to a supplier because their service has already been repaid with your money. That is how business works. With 2022 set to be as turbulent a year as 2021, at least at first glance, big questions need to be asked as to how your suppliers handled the last lockdown. Was it smooth sailing? Were they available to help with any problems? If yes, then that’s a good sign they’ll be just as capable through this one, but if there were problems, glaring or otherwise, then it might be time to ask if those problems will repeat this year. There may be suppliers better able to meet your demands, perhaps even at a more cost- effective rate or to a higher quality. It’s no secret that companies will fight harder to win your business early on, leading to a honeymoon period where you hold all the power, and they will be loathe to upset you. Are such methods exploitative or damaging to the economy? Not at all. In fact, the opposite may well be true. While remaining loyal to the same suppliers time after time will help their bottom line, new businesses enter the market all the time and some of them may have the potential to be large players in the future. Denying them the opportunity to sell their services to you solely because it is “easier” to stick with old suppliers could do both them, and yourself, a disservice. Instead, we should all be more attentive to suppliers, and the first few months of the year are the best time to take a look at this. Ask your staff who © stock.adobe.com/ntinai 25-27.qxp_Layout 1 10/01/2022 07:59 Page 2www.blmforum.net Business Link 27 NEW YEAR, NEW SUPPLIERS Businesses across the UK are looking at their day to day operations, asking how they implement best practice as they begin to recover from this pandemic. For those in the hospitality industry, food safety plays a key role in protecting your customers and staff, as well as gaining consumer confidence. Speak to your local Chemex Expert for support and guidance on reopening safely, without breaking the bank! Contact Peter Cussans at Chemex Lincolnshire for friendly help and advice. peter.cussans@chemexuk.com Tel 07941733201 deal directly with the suppliers what their experiences have been, how helpful the suppliers have been and whether there were any issues. It can sometimes be a surprise to discover just how difficult things have been; or that staff have had numerous problems with suppliers but have simply dealt with it on their own and not felt the need to inform management. To them, it may feel like it is their job to work around the issues, when in reality this could be taking valuable employee time away from more profitable work. It may well be that a business already has the best suppliers it can have, that nothing is discovered and that the suppliers have been both attentive and capable. Discovering such is not a waste of time or effort, however. Efficiency in any aspect of business can only be attained if manufacturing lines are quantified, if employee retention is monitored, and if sales teams work to targets. In business, everything should be quantified and measured at all times. How else will managers know what can be improved? Don’t take the attitude that the same does not apply to suppliers. They are a key part of your business focus, and their performance must be measured. If they’re not good enough, it may well be time to look for new service providers. © stock.adobe.com/Seventyfour 25-27.qxp_Layout 1 10/01/2022 07:59 Page 328 Business Link www.blmforum.net IT AND COMMUNICATIONS Avoiding obsolescence Avoiding obsolescence 28-31.qxp_Layout 1 10/01/2022 08:06 Page 1www.blmforum.net Business Link 29 IT AND COMMUNICATIONS © stock.adobe.com/Corona Borealis Despite the removal of financial aids introduced to ease the burden of COVID-19, many businesses are still struggling. Whether that’s down to a loss of clients and customers during the last two years, or because they’re still trying to cover losses accrued during successive lockdowns, it’s no exaggeration to say that businesses are keen to cut costs. There’s a myriad of ways to reduce overheads – from making redundancies, moving to smaller premises, and outsourcing certain duties – yet one area that’s often overlooked is a company’s IT and telecoms systems. As an area where major cost savings can be had, as well as gains in security and efficiency, businesses ignore it at their own peril. Arguably the main reason why companies don’t upgrade their IT and telecoms systems is under the pretence of saving money. Not only are they allowing themselves to be beset by constant connectivity issues but, ironically, by not upgrading they risk letting costs rise as much as fifty per cent. Prices skyrocket when a company is breached by hackers, ransomware, or any other kind of malware which becomes almost an inevitability when using legacy IT. When computers reach a certain age, they become incompatible with system and security updates and fixes, making them functionally obsolete and vulnerable to data breaches. Businesses with old, out of date software are more than twice as likely to suffer a data breach. There’s no two ways around it, good cybersecurity needs to be paid for, yet it will be cheaper than the financial fallout of a ransomware attack. However, there are ways to minimise the costs of cybersecurity. It’s critical not to wait until a cyberattack. Book a consultation with a trusted, reputable provider to understand your business’s needs and what levels of protection it requires. Any company that uses a smartphone or computer is vulnerable to attacks, but different levels of protection will be required for different companies. A builder’s merchant that uses a few computers for sales and inventory won’t need the same levels of protection as, say, a digital marketing firm. As we’ve already touched on, there are understandable reasons why a company would choose not to invest in modern IT and telecoms technology. Another reason is a fear of not being able to use new systems. As business becomes increasingly digital, staying relevant, being able to connect with clients and customers more easily, and gaining a competitive edge in an increasingly crowded marketplace means moving with the times and embracing digital transformation. A McKinsey Global Survey of executives found that their companies have accelerated the digitisation of their customer and supply- chain interactions and of their internal From robust cybersecurity measures to efficiency gains, Business Link explores the many benefits of updating IT and telecoms systems. 30 Á 28-31.qxp_Layout 1 10/01/2022 08:06 Page 2Next >