UK SMEs pay bumper bonuses in 2007
13 December 2007
As some City workers brace themselves amid forecasts of bonus cuts, new research from Alliance & Leicester Commercial Bank paints a rosier picture for employees of the UK’s small business community.
More than half a million UK SMEs expect to pay out end of year staff bonuses in 2007, with many saying employees will receive even bigger bonuses than in 2006.
One in eight (12%) of the UK’s 4.47million small businesses plan to pay out this year - this adds up to more than half a million firms, nearly half of the 1.2 million SMEs that employ staff. 95% of staff will get at least the same as last year – with a lucky 39% getting an increase.
Steve Jennings, Director of Business Banking at Alliance & Leicester Commercial Bank, said: “This is great news for small firms and their employees, and suggests many have enjoyed a profitable 2007. A year of good business can put owners in a strong position to pay staff bonuses. However with the outlook for 2008 less certain, business owners cannot afford to become complacent, they need to ensure costs are reviewed on a regular basis.
“With sound financial management, which can be as simple as getting the right business banking deal, they should be in a strong position to reward staff with bonuses next year. Collectively UK SMEs are losing over £500 million every year by sticking with uncompetitive banking providers, money which could be much better spent by investing in rewards to deliver greater motivation, productivity and loyalty among staff – arguably a company’s most important asset.”
According to the Alliance & Leicester Commercial Bank survey, small businesses in Scotland are the most likely to be paying out staff bonuses in 2007, with one in five (20%) planning to put their hands in their pockets. Businesses in the South (excluding London) are the least likely to be rewarding staff with bonuses this year with just 7% saying they will cough up the cash.
For companies with an annual turnover of less than £1 million Alliance & Leicester Commercial Bank offers the award winning Free Business Current Account which offers market-leading returns on small businesses’ hard earned funds, free and unlimited day-to-day banking and £4,000 free cash deposits each month.
For balances up to £1,000 the account offers a market leading return of 6.26% AER, with Alliance & Leicester guaranteeing that customers will receive 0.60% above the Bank of England base rate until 31st December 2008.
Small business owners can manage their business account through Internet banking, over the phone, via the post and pay-in and withdraw money at any Alliance & Leicester branch or at over 14,000 Post Offices across the UK – more outlets than all the Big Four banks’ branches added together.
Alliance & Leicester Commercial Bank also makes it easy for business owners to calculate how much their business could save by visiting freenotfee.co.uk, typing in the average monthly transactions and the website will calculate how much they could save per month by switching. For further information on the Free Business Current Account, small business owners should call 0800 587 0800.
