A changing business climate...

TRENDS are something we follow and look into on a weekly basis without even acknowledging.

Whether it be fashion trends, economic trends, or sporting trends, they possess vital information on how markets are performing and allow us to identify key performance indicators to ensure goals and objectives in business are reached.

Throughout the past few years, financial trends in the Aberdeen business market have changed dramatically.

New thriving businesses have popped up all over the city, multi-million pound re-developments and refurbishments have taken place, and new investors are interested in relocating businesses, establishing themselves in the Granite City.

Over the past decade economic output per head in Aberdeen has increased by 59 per cent in comparison with a rate of 35 per cent average for the rest of the UK, making the North-east of Scotland one of the most profitable places to do business.

According to Aberdeen City Council in 2011, Aberdeen and the surrounding shire had a gross value added (GVA) of £31,753 per person, meaning that is was the most economically productive region in the whole of the UK, outside of inner London.

The city has also recently overtaken Edinburgh as Scotland’s richest region according to recent Scottish government research.

It was found that the city and shire has 35% more disposable income per head than Glasgow (the poorest city in Scotland), which was stated in a briefing document published by the Scottish Parliament Information Centre (SPICe) in June last year.

Although there has been a recent drop in the oil price, which has led to many businesses evaluating costs – this process does not have to be a negative one.

Re-addressing staff levels and remuneration within a company can be beneficial for the long term of the organisation and its staff.

When pay increases are not possible, businesses are finding other ways to reward and motivate staff.

The introduction of auto-enrolment workplace pension schemes, with companies being obliged to pay into employees’ pensions by July 2017, will mean long-term security for workers which is of real financial benefit to the individual employee and the business itself.

By re-investing in staff, morale rises in the workplace and work ethic is positive.

Furthermore, health insurance and benefits packages such as dental health, physiotherapy, wellness programs, enhanced sick pay, and health checks are key benefits being offered by many companies today.

These types of benefits may be under scrutiny at the moment, however, many companies are still offering key benefits to core members of staff.

Staff are a vital driver behind the success of any business, and investing in benefits other basic salary can be a way to differentiate a business from its competitors, and will also encourage staff to remain loyal to an employer in challenging circumstances.

Setting up beneficial insurances is very easy, and with the right financial adviser, business owners can be sure they are making the full use of all of income and outgoings.

Chamber offer

Phil has an offer on for chamber members at the moment where he can set up a workplace pension/auto enrolment pension scheme for just £500.

This is extremely competitive and a true benefit of being a Chamber member.