Business

Remote, Back to Office, or Hybrid? 4 FP&A Challenges to Consider

Published

2 years ago

September 24, 2022

The ongoing shift in the workplace, which has been nurtured by our ability to work remotely and the flexibility that companies need in order to cope with the unpredictable, has forced companies to rethink how and where they want to work: fully remote, return to the office, or hybrid work. Deciding which model fits their team best is a key strategic move, and it’s one that financial planning and analysis (FP&A) teams will have a crucial say in. There are, however, four important challenges that FP&A teams will need to tackle in order to provide the best support for their organizations. Let’s discuss them.

1. Understanding the shifts of a dynamic workplace

FP&As need to go beyond the numbers of their financial statements. In fact, they need to understand the trends that are shaping today’s workplace and the hurdles that a company may face if it opts to return to the office or go fully remote. In order to improve financial planning and deliver better insights, it is important for finance professionals to understand the implications associated with each option and the trends that are shaping the corporate world.

Based on data from various surveys, Nikodem Szumilo, Associate Professor at University College of London, and Thomas Wiegelmann, managing director of Schroder Real Estate, argue that there’s enough evidence that “most office workers actually want to go back to an office — but only two or three days per a week.” This kind of information should be taken into consideration by FP&As when measuring and forecasting things like productivity and retention rates.

Finance teams must understand the complexity that the various options in today’s workplace offer, as well as the fact that an option that suits employees best might not do the same for management. Finance can play a key role in making sure that both parties are happy, while also moving the company in a strategic direction.

Let’s look at this example: Many managers are eagerly looking forward to bringing employees back to the office to be able to physically keep tabs on their work progress. But if employees are rooting for a remote (or hybrid setup), it can be financed by a job to bring up tools like a project time tracker. Not only does this help managers have a better handle on their team’s work, but it also provides useful insight into business operations, finance, and daily decision-making.

2. Adopting a more strategic role

The modern finance department is rapidly moving from a transactional thinking approach to a strategic one. “The new operating model of finance recognizes the subject matter expertise of FP&A and its focus on delivering the best data for business decision-making,” explains Anders Liu-Lindberg, leading advisor to senior Finance and FP&A leaders.

Being able to meet that role will certainly be a challenge for many FP&A teams that are still solely focused on the transactional side of their business. Even if managing the cash flow is still an essential part of their job, finance professionals need to update their role within the organization. “The traditional roles of transaction processing and reporting remain, of course, but in an automated form that releases resources to explore value drivers in the business and move the focus to plan with an uninterrupted forward-looking view. FP&A is at the very heart of business decision-making,” argues Liu-Lindberg.

In terms of financial forecasting and financial planning, for example, FP&As should encourage their companies to truly understand where and how their employees would like to work. If they are able to gather and analyze such information, they will be able to better predict the amount of capital the company will need to invest in certain areas.

“If your organization is enforcing a strict back to the office mandate, you’ll likely need to plan for additional recruitment fees and training, as well as allowing for dips in productivity as you replace the people who inevitably resign,” argues Kevin Phillips, Founder, and CEO of idu Software. Considering this, if you are able to collect information about your employees’ working preferences, you will be able to forecast much more precisely.

3. Quantifying the impact of all the scenarios

Whether you are going fully remote, opting for a hybrid workplace, or going back to the office, this is one of the biggest challenges that FP&A teams need to face. In fact, in any of these scenarios, there are considerations to make from the financial point of view. According to Phillips, the following are the three things FP&A teams need to consider when quantifying the impact of each option:

Let’s review some of the practical costs that companies need to consider when opting for any of the three scenarios above.

Working from home 100%

If you decide that you and your employees are going to be working from home on a regular basis, “you need to account for mortgage and lease liabilities. What will it cost to get out from under a long lease agreement or to sell commercial real estate?” asks Janet Schijns, CEO of JS Group. Considering the crucial role that rent plays in any budget strategy, this is an important consideration to make.

Apart from lease liabilities, any financial planning needs to evaluate the remote setup costs that your employees may need. For those with a high-speed Internet connection, good hardware, and comfortable working space, things may be simple. However, for some other people, the remote setup costs could be steeper.

In fact, for “a telehealth provider or call center agent, you may need to cover VPN access, HIPAA-certified unified communications and collaboration licenses, secure cloud storage, improved broadband access, remote tech support, cyber insurance that covers risks associated with remote access and in some cases mobile devices and plans,” explains Schijns. On top of that, you may even need to reimburse some of your remote employees for the expense associated with their work.

However, going 100% remote work also offers some cost-saving benefits. Apart from not having to pay rent for a big office, the possibility of bringing remote hires into your team represents a good opportunity for saving money. “You can now hire top talent from anywhere in the world and pay them more than what they would earn locally, but less than what you’d have to pay at home. This is a win-win situation, especially for your salary costs,” argues Phillips.

Along those lines, FP&A teams must treat all the technological investment and organizational changes their companies adopted during the pandemic as an investment that favors the remote work option. The biggest cost of switching to remote or blended work is the cost of adapting to the new technology has already been paid. Nobody should commit to long-term remote work because they want to recover the sunk cost of moving online due to the pandemic. However, the pandemic irreversibly reduced the cost of switching to remote work and made this choice cheaper,” argueSzumilo and Wiegelmann.

Return to office

As we mentioned before, if you want everybody to go back to the office, your financial planning needs to consider the potential of facing resignations from employees who don’t want to lose the flexibility they gained during the pandemic. This will have an impact in terms of recruiting fees, training costs, and the additional perks you may need to offer if you want to persuade your top performers to stick with you.

Furthermore, any budget strategy designed around the option of going back to the office needs to bring into consideration some sort of investment in perks capable of compensating for the loss of flexibility and additional costs (e.g. commute, gas, lunches) that employees will need to pay when returning to the office.

Some companies are, indeed, already offering practical solutions to their employees. For instance, Bloomberg is giving its US employees a $75 daily commuting stipend while PwC in the UK is offering an extra £1,000 for commuters. “But these perks and stipends certainly don’t extend to all companies–meaning people are not only being asked to give up remote work but also spend more to do it,” argues writer Sophia Epstein.

The costs associated with healthy environments, however, are an element that should play an important role in the financial planning of any organization, and FP&As will play an important role in guiding companies in making the right investments. “More robust air filtration and newly installed outdoor spaces are among the items that will add to developers’ costs when more employees return. New cleaning practices may make those services more expensive, and landlords are offering new amenities to lure tenants back,” explains writer Julie Weed.

Providing this kind of guidance, however, can be a big challenge for FP&A teams that need to deal with top executives unwilling to incur those kinds of expenses. To tackle this, FP&A professionals need to quantify the potential effects of not implementing some of the needed structural changes. As stated by Nellie Brown, a health and safety specialist who provides training and technical assistance for New York State workplaces, “if you don’t spend money on upgrading your ventilation, you might be spending it on sick people.”

Hybrid workplace

Considering everything we mentioned about the two previous scenarios, it is easy to understand why a hybrid workplace has been embraced as the ideal to move forward by so many organizations around the world. While this model partly combines the disadvantages of the other two options, it fully combines the best of both worlds. For instance, with a hybrid work model, you will be able to improve your retention rate while saving costs on office space.

From the financial point of view, the reduction of office space is, in fact, one of the most attractive elements of a hybrid workplace. In fact, there is a broad consensus among CEOs that organizations will need less office space in the future. “This could drive significant cost savings in both operating costs and capital expenditures,” argue Deloitte managers James Griffin and David Asker.

In spite of these benefits, finance teams should carefully assess all the pros and cons that come with this model. In order to do that, FP&As will need to analyze the data accurately, and this could be a significant challenge for organizations that are still relying on spreadsheets and lack automation and data collection tools.

4. Making a strong business case

Right now, the business case that CEOs and top managers are using to justify the return to the office gravitates around two variables: productivity and management. The rationale is that some employees are more productive when they work in the office. Plus, many leaders think having everybody at the office allows managers to monitor the performance of those employees more effectively.

The problem with this rationale is that there’s little evidence that supports such claims. In fact, there are numerous surveys that claim just the opposite. Because of this, one of the most important emerging challenges faced by the finance controller today relies on its ability to provide guidance in regard to the business case that a company uses to justify the return to the office.

If you want to make your case in terms of productivity and management, you need numbers that support those arguments and this is where an FP&A team needs to provide support. However, coming out with those numbers may be difficult especially if productivity has been sustained during the health crisis.

An opportunity to update your company

Not all FP&A teams will need to deal with the challenges we mentioned above. For some companies, the decision to bring their employees back to the office has been already made with hardly any single financial consideration other than a space cost-saving strategy. In a world where so many people are scared to death to lose their jobs and so many managers need physical control to legitimize their roles, companies have found little to no resistance when ordering people to go back to the office.

However, companies that are truly interested in improving their KPIs, building a healthy corporate culture, and saving costs through a well-defined budget strategy and financial planning, need FP&A teams that are strategic and able to quantify (with the right tools) all the possible options to move forward. By doing that, they will not only provide valuable insights into the organization, but they’ll also reinforce the business case that companies need to persuade employees to do their best. Meeting the challenges we mentioned throughout this article represents a great opportunity to update and prepare your company for the future.

Related Topics:Business Featured FP&A Challenges

Business

How Franchise Consultants Can Transform Your Business?

Published

3 months ago

September 11, 2024

Florencia Haden

How Franchise Consultants Can Transform Your Business

In an ever-evolving business landscape, franchise consultants have emerged as vital partners for entrepreneurs looking to expand or establish their franchise operations. These professionals bring a wealth of expertise and insight that can significantly enhance a franchise business’s performance and scalability. By leveraging the knowledge and experience of franchise consultants, business owners can navigate the complexities of franchising more effectively, ultimately transforming their business into a more robust and competitive entity.

How do Franchise Consultants Help in Market Research and Analysis?

Franchise consultants excel at conducting thorough market research and analysis, a vital service for potential franchisees who want to grasp the intricacies of their target market. By employing diverse methodologies such as surveys, focus groups, and competitor analysis, these consultants gather critical data to inform strategic business decisions.

Companies that offer franchise consulting services are adept at identifying emerging trends and market gaps. For example, if there’s an increasing demand for eco-friendly products in a specific region, they can advise a retail franchise to stock more sustainable options. This data-driven approach ensures that franchises can tailor their offerings to meet customer demands and stay ahead of competitors.

Moreover, franchise consultants provide invaluable insights into optimal location selection. By examining factors like demographics, traffic flow, and local competition, they guide businesses in choosing sites that maximize visibility and customer footfall. Such informed decisions significantly contribute to higher sales and profitability, giving franchises a competitive edge in their chosen markets.

The Importance of Franchise Consultant Expertise in Legal Matters

Franchising comes with a host of legal complexities that can be daunting for business owners to navigate alone. This is where franchise consultants prove invaluable, guiding businesses through intricate legal terrains with ease. Their expertise helps in drafting clear, comprehensive franchise agreements, elucidating key clauses and their implications, which empowers franchisees to make well-informed decisions about their rights and responsibilities.

Franchise consultants also excel in ensuring compliance with an array of industry regulations. They often collaborate with legal professionals to scrutinize all necessary documentation, ensuring it adheres to local, state, and federal laws. This meticulous attention to detail mitigates the risk of future disputes and legal complications, enabling franchise owners to concentrate on growth and expansion.

Moreover, franchise consultants can assist in the due diligence process, thoroughly reviewing legal obligations and potential liabilities. They help franchisees understand the implications of signing agreements and the legal ramifications of various business decisions. Doing so ensures that all parties involved are aware of their commitments, safeguarding against unforeseen legal challenges.

Their role extends to advising on intellectual property rights, such as trademarks and patents, which are crucial for protecting the brand. They can offer insights into maintaining these rights and ensuring they are adequately enforced, thereby preserving the integrity and value of the franchise.

Franchise consultants also stay updated with the latest legal developments and regulatory changes in franchising. This continuous vigilance helps businesses stay compliant and adapt swiftly to new legal requirements, avoiding potential legal pitfalls.

Strategies and Support Offered by Franchise Consultants

Franchise consultants offer a myriad of strategies and support services tailored to each business’s unique needs. Their expertise extends beyond market analysis and legal matters; they also provide operational guidance, marketing strategies, and training programs.

For instance, a franchise consultant can help streamline operations by identifying inefficiencies and suggesting best practices. This could involve implementing standard operating procedures (SOPs) that enhance consistency and productivity across all franchise locations. With a well-structured operational framework, franchisees can deliver a uniform customer experience, which is essential for brand reputation and loyalty.

In addition to operational support, franchise consultants can assist in developing effective marketing strategies. They understand the intricacies of franchise marketing, including local marketing initiatives that drive foot traffic and enhance brand visibility. By leveraging their networks and industry insights, consultants can help businesses design targeted marketing campaigns that resonate with their audience, ultimately driving sales.

Training is another crucial area where franchise consultants excel. They often develop comprehensive training programs for franchisees and their staff, ensuring that everyone is well-equipped with the skills and knowledge necessary to succeed. This ongoing support fosters a culture of excellence within the franchise, resulting in higher performance and customer satisfaction.

Conclusion

Franchise consultants are pivotal in steering businesses towards success in the competitive franchising industry. Their multifaceted expertise in areas such as market research, legal compliance, operational efficiency, and training support equips franchise owners with the tools necessary for sustained growth and competitiveness. By engaging with franchise consultants, entrepreneurs can make data-driven decisions that enhance their market positioning and customer appeal.

The strategic insights offered by franchise consultants enable business owners to navigate the complexities of franchising with greater confidence. Their adeptness at identifying market trends and gaps and their proficiency in legal matters ensure that franchise operations are both compliant and optimally positioned for success. This holistic approach mitigates risks and paves the way for strategic growth and expansion.

Furthermore, the operational and marketing strategies provided by franchise consultants are tailored to meet the unique needs of each franchise, fostering consistency and excellence across all locations. Their support in streamlining operations and developing targeted marketing campaigns is instrumental in building a strong, cohesive brand that resonates with consumers.

In addition, the comprehensive training programmes crafted by franchise consultants ensure that franchisees and their staff are well-prepared to meet the business’s demands. This commitment to ongoing education and support fosters a culture of continuous improvement, leading to enhanced performance and customer satisfaction.

For those looking to enter the franchise market or elevate their existing franchise operations, the guidance of franchise consultants is an invaluable asset. Their expert advice and support can be the differentiating factor that transforms a fledgling business into a thriving franchise. In today’s ever-changing market landscape, partnering with a franchise consultant can be the key to unlocking new levels of success and achieving long-term sustainability.

Business

Announcing The Best Futures Brokers In The UK For 2024

Published

5 months ago

August 8, 2024

William Immelt

Announcing the best futures brokers in the UK for 2024. According to recent data, there were over 1.2 billion global futures and options outstanding contracts at the end of 2023. With a 15% increase from 2022, many buyers are looking to trade futures like indices, currencies, and commodities. Indeed, this financial contract allows traders to buy an asset at a set date and price. As a trader yourself, you need to know the best futures brokers UK. This way, you can find a secure, well-regulated platform without worrying about price fluctuations. Read on to learn about the best futures brokers in the UK for 2024.

Vantage Markets

First, Vantage Markets is one of the top FCA-regulated futures brokers in the United Kingdom. Trade a wide range of assets like forex, commodities, and precious metals. Plus, trade bonds, indices, and ETFs as well. In addition, Vantage Markets also has a wide range of tools – including custom charts and trading calculators. Trade on robust platforms like MT4, MT5, and ProTrader. Plus, access to low trading costs, 24-hour customer support, and negative balance protection. With Vantage Market’s V-Social app, you can also chat with other traders to ask questions and auto-copy experienced investors. In short, consider Vantage Markets as you consider the best futures brokers in the UK.

Interactive Brokers UK

Next, Interactive Brokers is another one of the best futures broker platforms in the United Kingdom. Trade a wide range of futures asset classes – like agriculture, metals, and energy. Plus, trade commodity futures on over thirty global market centers. With powerful trading tools like SpreadTrader, you can also manage your futures positions directly on the Trader Workstation platform. Leverage the ComboTrader tool to create robust order strategies. Or, choose from templates and pre-set programs to execute your futures trades. Of course, you can also learn more about broker reviews and comparisons on news sites like BrokerageToday.com. Undoubtedly, consider Interactive Brokers as you choose your futures broker UK platform.

FXPro

In addition, consider FXPro as you choose the best futures brokerage UK. With this platform, you can access over 70 global exchanges. Plus, trade on a wide range of asset classes – like commodities, forex, and indices. Importantly, FXPro is also regulated by the Financial Conduct Authority (FCA) and the Cyprus Securities Exchange Commission (CySec). This way, you can access safe, well-trusted accounts with tier-one banks. Plus, utilize educational webinars and market analysis tools to improve your trading strategy. Of course, you can also take advantage of low commissions and innovative tech solutions. Consider FXPro as you choose the best futures brokers in the UK.

NinjaTrader

Moreover, NinjaTrader is another one of the top futures brokers UK for 2024. Indeed, many traders prefer this platform for its low margins and commissions. Plus, take advantage of a $0 minimum deposit. In addition, NinjaTrader offers multi-device cloud-based technology, so you can trade easily across your devices. For example, trade on PC, Mac, and mobile operating systems. Plus, customize your trading experience with over a thousand third-party add-on options. Notably, NinjaTrader also provides access to E-mini indexes – one of the world’s most popular futures markets. Surely, consider NinjaTrader as you choose the best futures broker in the UK.

Optimus Futures

Furthermore, Optimus Futures is another one of the best future brokers United Kingdom to consider in 2024. Indeed, you can access competitive commissions and margin rates. Plus, expect a transparent fee schedule – so you know when you’re making payments. With Optimus Futures’s demo account, you can also test the broker’s futures trading before you invest in any funds. Since Optimus Futures has a $500 minimum deposit, open the demo account to ensure you like the platform beforehand. Of course, you can also leverage educational resources and customer support if you need additional platform support. Surely, Optimus Futures is one of the top futures brokers UK to consider in 2024.

There are several best futures brokers UK in 2024. First, consider Vantage Markets to trade a wide range of assets like forex, bonds, and indices. Next, Interactive Brokers UK also offers powerful trading tools like SpreadTrader and ComboTrader. In addition, FXPro is another well-trusted, FCA-regulated broker to securely trade your assets. Of course, many traders also prefer NinjaTrader for their low commissions and margins. Furthermore, Optimus Futures is another one of the top platforms for its transparent fee schedule. Consider the points above to learn about the best futures brokers UK in 2024.

Business

LinkedIn Rolls Out AI Assistant for Premium Members

Published

6 months ago

June 22, 2024

Daniel Egusa

LinkedIn Rolls Out AI Assistant for Premium Members

LinkedIn is currently testing an AI assistant for its Premium members, integrating Microsoft’s advanced AI technology. This initiative marks LinkedIn’s first significant consumer-facing AI product, expanding beyond its traditional enterprise-focused services.

Why It Matters: This development places LinkedIn alongside other social platforms like Snapchat and Instagram, which have already introduced similar AI features. The move underscores a growing trend where social networks leverage AI to enhance user engagement and provide personalized experiences.

Background: Previously, LinkedIn launched several AI tools aimed at recruiters and job seekers, including AI-assisted candidate discovery and AI-powered coaching tools. The tease of a consumer AI assistant last year set the stage for this broader rollout to Premium users, which has been picking up pace in recent weeks.

Details of the AI Assistant: The AI assistant feature on LinkedIn prompts users to explore more about companies or topics mentioned in posts within their feeds. This feature combines insights from LinkedIn’s vast user base and data from Microsoft’s Bing search engine to deliver comprehensive information.

How Does It Work?

When users interact with a feed prompt, they’re directed to a chat interface where they can ask the AI assistant for further details. This interaction is labeled as “Powered by Bing,” ensuring transparency about the source of the information. The responses are tailored to the user’s professional background and skills, enhancing the relevance of the information provided.

Privacy and Personalization: The chat feature includes a disclaimer about its beta status and potential for errors, with a note that Microsoft’s privacy policy may apply. This is part of LinkedIn’s effort to maintain transparency and user trust as it rolls out new AI capabilities.

LinkedIn’s introduction of this AI assistant is just one part of a broader strategy to integrate more AI-driven tools into its platform. These tools are designed to connect users with relevant content and insights, potentially accelerating career growth and enhancing professional networking.

As AI technology continues to evolve, platforms like LinkedIn are finding innovative ways to harness these advancements to benefit their users. This new AI assistant for Premium members could transform how professionals interact with content and gather insights on LinkedIn, making it a critical tool for career development.