< Previous20 Business Link www.blmforum.net LEGAL SERVICES include reduced planning requirements and environmental impact assessments. This open ambition for deregulation has caused concern for many about the lack of protections that this could leave employees vulnerable to. EU law sets out strict protections on holiday pay, working hours and parental leave, amongst other rights that are currently enjoyed by UK workers. The Trades Union Congress, which represents 48 member unions across England and Wales, has called the legislation “reckless,” and believes that it opens the door to eroding workers’ rights. This leaves businesses in an ethical quandary as to how to balance operations and employee welfare moving forward. This deregulation could especially impact those who are hybrid workers. Hybrid workers are defined as those who spend part of their time at their workplace, and part of their time working from another location (most often their home). Research indicates that the majority of hybrid employees wish to continue working from home at least some of the time. If hybrid working is to continue for a business, ongoing review of policies and procedures is a must. This includes existing HR policies (it is recommended that a hybrid or agile working specific policy is introduced) which include how employees will be managed and supervised, as there is the potential for differential treatment. This is especially important if the business is making a push for a return to office working. Businesses should also check employer’s liability policies cover hybrid working, and that this is covered moving forward. Data protection policies and procedures should also be reviewed. It is recommended that regular training is provided on GDPR compliance and data security, especially for those who work from home. Currently, there is a statutory framework for hybrid working, which provides that employees should make a formal request for a flexible working arrangement. Despite the massive shift to flexible working during the pandemic, research shows that nearly half of all employees do not have flexible working in their role. As a response to this research, the Chartered Institute of Personnel and Development has launched a campaign to make flexible working requests a right from day one of 18-21.qxp_Layout 1 03/10/2022 13:41 Page 3www.blmforum.net Business Link 21 LEGAL SERVICES employment. However, home or hybrid working can be agreed informally without the need to formally alter the employment contract. This should be outlined as part of the flexible working policy mentioned above, and state that this is discretionary subject to business requirements. Consistent application of HR policies is important for employee morale – this could include a requirement to make a formal request to amend their contract or employing a discretionary hybrid working policy for all or part of the workforce. Essentially, employers continue to retain control. Employees are bound by their contracts so flexible working will always be at the discretion of the employer. The only way for employees to formally increase their flexibility is to have their formal flexible working request approved. Employers will have to be able to justify any decisions to decline the request. Before declining the request, it is important to consider whether it is reasonable to force a cohort to work at the office location. This inflexibility is quickly being seen as an old-fashioned approach to management. If the request is approved, best practice is to hold a meeting which details the responsibilities and restrictions of this change. If this is not explained properly to an employee, this could raise a case for a tribunal should a misunderstanding occur. Employers who seek to use flexibility clauses (like a mobility clause) to alter employee contracts should note that they cannot be relied upon unless the change is reasonable, or a minor © stock.adobe.com/Freedomz administrative change not detrimental to employees. Whilst these upcoming deregulations appear to be a gift at first glance, it does not come without downsides. The ability to take paid holiday and work regulated hours is not just important for morale, it is essential to avoid burnout and increased employee sickness. The ability to work from home gives workers a degree of flexibility with their work, which studies suggest makes for an overall happier and more productive workforce. These are vital factors to consider in the face of deregulation. First and foremost, however, it is important to review standard contracts with legal experts to determine what protection this affords staff before any amendments can be made. 18-21.qxp_Layout 1 03/10/2022 13:41 Page 422 Business Link www.blmforum.net WAREHOUSING AND DISTRIBUTION © stock.adobe.com/a_medvedkov Limited space Limited space 22-25.qxp_Layout 1 03/10/2022 13:42 Page 1www.blmforum.net Business Link 23 WAREHOUSING AND DISTRIBUTION G iven its central location within the UK, Yorkshire and Lincolnshire should be a warehousing and distribution hub for many nationwide suppliers. However, there is in fact a significant lack of warehousing space within the region, and the available space is so expensive that it prices many smaller businesses out of the market. Further to this, industrial units are gaining traction as trendy locations for leisure facilities such as gyms and pubs – meaning that the competition for space is growingly fierce. The Amazon business model has overhauled the way many distributors operate today. Many businesses now choose to store vast quantities of stock in centralised hubs, which can easily be selected and sent out within hours of an order being received. Due to this, the largest issue is the lack of vacant units within the region. This equates to a vacancy rate of only 1.4%. In fact, there are just three vacant units within the 200,000-360,000 sq ft range across the region. This has resulted in larger companies contracting the construction of built-to-suit units, but in the face of increasing construction costs and lengthy lead times, this is costly in both time and money. There are currently 27 units under construction, totalling a further 5.06 million square feet of space. However, a majority of these are already under offer or have multiple companies competing for them. Despite the extra units, if these were to be counted as vacant, this would only increase the vacancy rate to 5.45%. In other words, the demand for larger Yorkshire and Lincolnshire has all the hallmarks of a distribution powerhouse, but limited warehouse space – and fierce competition for more – hold the region back. 24 Á 22-25.qxp_Layout 1 03/10/2022 13:42 Page 224 Business Link www.blmforum.net WAREHOUSING AND DISTRIBUTION units continues to far outreach the supply. Many businesses are choosing to outsource space in neighbouring regions instead. The massive demand for space has caused rent to skyrocket for top-quality units. This has even had a knock-on effect for lower quality space, many of which are undergoing comprehensive refurbishment to maximise profitability and secure renters. With only 3% of transacted space in 2022 being second hand, companies are willing to pay top dollar for good storage. In fact, the trend preference is for better quality units. This year, 49% of space transacted was speculatively developed, 28% of which was let before practical completion, and 48% of this was built-to-suit space. With all the available units being considered Grade A, there is no need to offer incentives to prospective renters. This pushes the net-effective rents to new heights for owners, making a rent- reprieve unlikely. To further confound the problem, industrial units are in demand for increasingly diverse purposes. Small businesses are now commandeering these units for use as trendy gyms and pubs, leaning into the recycled buildings as a quirky feature. This is increasing the competition for small units of less than 5000 sq ft, which provide more flexibility for smaller businesses. This competition is making it more difficult for smaller businesses to get themselves off the ground. The demand for space is so competitive that businesses may be forced to take smaller units than they would prefer. So, what can be done to maximise the space that is available? Generally, using the vertical space of a warehouse is just as important as the floor space. This could be done by installing a mezzanine or using tall shelving. This largely depends on whether staff will be picking the items out, or robots. It is also important to ensure safe retrieval processes are in place, such as vertical lifts or picking robots which can auto retrieve and store. Vertical storage could also extend to adding beams across the aisles, which can be excellent for additional pallets. This includes space above the dock doors. To maximise over-door storage, a simple pallet rack can be added, or over- dock systems can be specifically © stock.adobe.com/Duncan 22-25.qxp_Layout 1 03/10/2022 13:43 Page 3www.blmforum.net Business Link 25 WAREHOUSING AND DISTRIBUTION Tel: 01482 325676 • Email: sales@kingston-engineering.co.uk • www.kingston-engineering.co.uk Kingston Engineering are specialists in precision engineering, based in Hull. As one of the region’s leading companies in their sector, Kingston Engineering can provide specialised power screw products, specialist leadscrew and ex-stock power nuts and screws. In addition, they can provide expertise and guidance in factory and production machinery installation, commissioning, maintenance and repair. designed for a particular unit. Another way to maximise space is to reduce the size of the aisles, which allows more stock to be added. This is easily achieved by switching handling operations from a sitting to a standing system. Stand up trucks require 96’’ aisles, whereas traditional sit-down equipment often needs as much as 168’’. Another consideration is storage type, as not all products are likely to be suited to shelving. Diversifying storage types could include carousels or racking instead of shelving. To identify optimal storage types, companies should identify which stock is fast moving. These are less likely to need shelf space and may even be able to be floor stacked. The simple fact is that if Yorkshire and Lincolnshire is to retain its status as a central distribution hub, more purpose- built warehousing space is required. Given that outsourcing to other regions has already begun, this has the potential to encourage investment in those regions instead. There is also significant opposition from locals to be anticipated whenever new warehouses are proposed, given their purpose-built nature often leaves much to be desired with their appearance. The key takeaway is to ensure that space is utilised wisely, via storing as much information as possible digitally (implementing a paperless initiative) and employing space saving storage techniques. © stock.adobe.com/zhengzaishanchu 22-25.qxp_Layout 1 03/10/2022 13:43 Page 426 Business Link www.blmforum.net SUPPORTING BUSINESS GROWTH The reason why the term “supporting business growth” has meant finance for so long is because there were few problems that could not be solved with the application of enough money. Need skilled staff? Advertise to recruit and hire them. Need new facilities? Simply buy them. Need to expand into a new market? Buy out a company already in it and use their expertise. The problems may have been myriad, but the solution was simple – money. We live today in a different world. The stagnant economy that has seen limited wage rises for years or even decades; the soaring inflation after a pandemic, after a recession after a credit crunch, and more and more globalism adding new competition for jobs, customers and market share. All of these have led to harsher trading conditions and a wealth of competition. Furthermore, at a time when wages simply aren’t rising and where companies and people are struggling to earn enough to survive, the focus for employees is on getting the best deal possible. Before, the unemployed were desperate for work and there weren’t enough jobs going around, placing recruiting power in the hand of the employer. That simply isn’t the case today as labour and skills shortages are impacting many sectors, and local businesses are seeing the best and brightest poached by big city firms willing to offer unrivalled packages including not just money, but gym memberships, more breaks, flexible hours, working from home and more. Growing a business in today’s economy is not as simple a matter as borrowing money and expanding; now, thought has to be put into how to expand, where, how staff will be sourced, how expensive new property might be and – in sectors involving manufacturing or logistics – how few commercial properties are available on the market. There are undoubtedly many businesses in a position to expand who feel it isn’t feasible because recruiting staff would be too difficult, or In support of growth It used to be that supporting business growth meant gaining more money, finance or capital, but changing working conditions and a new economy have flipped the table. 28 Á 26-29.qxp_Layout 1 03/10/2022 13:44 Page 1www.blmforum.net Business Link 27 SUPPORTING BUSINESS GROWTH © stock.adobe.com/ink drop 26-29.qxp_Layout 1 03/10/2022 13:44 Page 228 Business Link www.blmforum.net SUPPORTING BUSINESS GROWTH © stock.adobe.com/Prostock-studio 26-29.qxp_Layout 1 03/10/2022 13:44 Page 3www.blmforum.net Business Link 29 SUPPORTING BUSINESS GROWTH because rental costs of a new office would be inhibitive, or simply because there’s too much uncertainty in the current economy, and sometimes – especially now – having a large cash flow to fall back on if yet another economic disaster should occur is perhaps a better idea than expanding. We know from conventional business wisdom that it is not. Money wasting time doing nothing is inefficient, and those who do not grow are swallowed up by others willing to take the risk and put in the effort. The stagnation felt by many is, perhaps, more a case of decision makers not moving with the times. Business growth is no longer just a financial matter and shouldn’t be looked at as such. All departments must be involved. When it comes to HR and recruitment, there is increased focus on expanding workforces via training up unskilled employees and apprentices now. It’s hard to compete with the biggest companies, and many local businesses can’t afford to offer working from home or reduced hours as part of their package. In that case, it is better to let the skilled worker pool go rather than compete in an arm’s race with the giants. Instead, consider apprenticeships or even training courses for new employees who might not initially fit the bill. This isn’t a simple matter for accountants and solicitors who need to recruit from universities, but many other companies can involve trainers in bringing new staff up to standard. There are plenty of business schools, independent training groups and programmes available in the region to help with this, and many of them come with regional or Governmental support in terms of financial packages to incentivise their use. On issues of property, modular and virtual office space has grown in popularity in recent years for good reason. While it may not be as impressive from a branding angle to share a building with other companies, the financial savings are monumental, and leaving all the issues of owning and maintaining the property in someone else’s hands can help limit the number of plates a business needs to juggle. Finance still is an important factor of business growth, and so the issue of how to raise it remains, but there is a wealth of alternative options to bank loans today, including angel investors, crowdfunding, and securing funding from online groups like Funding Circle or, for start-ups or new innovations, even consumer sites like Kickstarter. Many entrepreneurs have raised millions from these sources, all the while dodging the intense paperwork and oversight that most banks will demand. In a sense, business growth has not changed that much – the rules remain the same – but it’s the hoops that must be jumped through that have increased in complexity and number. Given the state of the economy and the controversial mini-budget, however, it’s hard to see any of that changing in the foreseeable future. 26-29.qxp_Layout 1 03/10/2022 13:44 Page 4Next >