A massive 75% of employers believe financial management should be their business priority, according to the latest report by Hitachi Capital’s Business Barometer.
The study found that just 17% of employers focused on the importance of investing in the future of business and innovation and only 37% put financial maintenance at the top of their priority list.
The key to growth
The report also found that during the first quarter of 2015, 16% of companies employed more staff and 13% chose to invest in new equipment as part of efforts to aid future growth.
The increase in staff is great news for graduates and those looking to take on new roles within prominent UK industries, such as manufacturing.
When the report analysed various business sectors it found that 26% of manufacturing businesses are focusing on employing more staff as a way to build a stronger future for their company.
This figure is considerably higher than that report in 2014 when only 15% of manufacturing businesses said the same.
Conversely, 12% of manufacturing companies are actually choosing to streamline their services and supply chains – 4% more than the 8% of companies who took the same action at the end of last year.
This could be because cost reduction is seen as the “key to growth” in this particular industry and will continue to be a dominant influence over the next three months.
General Manager at Hitachi Capital Business Finance, Gavin Wraith-Carter, explained that this research puts forward a strong case for ensuring financial management is a top priority amongst all businesses.
He said that the research proves the thorough management of financial affairs is critical to employment growth in the UK and added that its role becomes even more important “when businesses are coming out of a recession mindset” and attempting to “resurface” once again.
Wraith-Carter also argues that for British businesses to sustain growth and encourage further market activity they must be prepared to spend money and invest where necessary.
“It is obviously essential to recognise the need for ongoing investment,” he concluded.
Businesses should therefore look to improve their financial management and consider whether spending money on staff, equipment and other vital investments could prove more beneficial in the long run.
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