{"id":12054,"date":"2020-07-05T16:43:50","date_gmt":"2020-07-05T16:43:50","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=12054"},"modified":"2020-07-07T17:26:06","modified_gmt":"2020-07-07T17:26:06","slug":"15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/","title":{"rendered":"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession"},"content":{"rendered":"
\"\"
15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession<\/figcaption><\/figure>\n

A report out today on HR trends<\/a> in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.<\/p>\n

The Employee Equity Trends 2020 report was compiled by Vestd, the share scheme and equity
\nmanagement platform. It highlights the struggle many SMEs are currently facing.<\/p>\n

The research found that 14.9% of SMEs are planning to cut the pay of their employees, with a<\/a>
\nfurther 16.7% undecided. 48% said there would be no pay rises in the next 12 months.<\/p>\n

The study of 500 UK-based business founders, owners, partners and C-level executives also revealed
\nthat nearly half were rethinking how they run their business, and as part of that would be looking at
\nsharing ownership with their team.<\/p>\n

Ifty Nasir, the Co-Founder and CEO of Vestd<\/a>, explained: \u201cSome employers are in a very difficult
\nposition, they either cut their staff numbers and struggle to remain productive, or they have to cut
\npay, which risks losing the best employees. Pay cuts for this many people is unprecedented and,
\nwithout their agreement, is illegal. It would seriously deplete spending power and that could trigger
\nan even deeper recession.\u201d<\/p>\n

\u201cOur research shows that the more progressive companies are turning to sharing equity, as it can be
\nused to offset short term pay issues. In the long run it could be worth many times more than any gap
\nin salary growth.\u201d<\/p>\n

COVID-19 has been challenging for most businesses but, encouragingly, almost half of SMEs
\nreported that the pandemic had demonstrated the value and importance of their team. One in four
\nsmall employers already share ownership with at least one person in their team.<\/p>\n

However, there is confusion and disparities when it comes to shared equity schemes. While 60% of
\nSMEs said that it leads to improved employee retention and one in three reported that the share
\nscheme has increased the value of their business, many employers are reluctant to consider them.
\nOf the reasons for not considering sharing equity, most are down to a lack of understanding of what
\nit actually involves. The top are:<\/p>\n

Perception of cost (30%). It is expensive if you use a lawyer or an accountant who don\u2019t specialise in
\nthis area. However digital platforms, like Vestd, are only a tiny fraction of this cost and greatly
\nreduce the risk of making the kind of mistakes that have major value and tax implications.
\nDilution (24%). There are ways to manage this and of course having a slightly smaller share in a very
\nsuccessful business (as a result of more productive and loyal staff) is worth more than having all the
\nshares in one that does not reach its full potential.<\/p>\n

The report also revealed that a significant number believe it will be too complicated to introduce an
\nequity share scheme or don\u2019t know how to do it (24% when combined), or they have other priorities
\n(21%). However, by using an expert partner, it is now very quick and straightforward to do.<\/p>\n

Ifty concluded: \u201cIncentivising and rewarding people with equity has proven business benefits and is
\nbecoming the norm among progressive start-ups and SMEs. During the COVID-19 crisis<\/a> we have
\nlaunched a number of share schemes for SMEs that wanted to compensate employees, who have in
\nsome cases been asked to reduce their salaries and \/ or hours. It answers a dilemma for small
\nbusinesses around how to afford and retain great people on a small company budget.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy. The Employee Equity Trends 2020 report was compiled by Vestd, the share scheme and equity management platform. It highlights the struggle many SMEs are currently […]<\/p>\n","protected":false},"author":7,"featured_media":12071,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":""},"categories":[3585,3822],"tags":[3468,10023,3720],"acf":[],"yoast_head":"\n15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession<\/title>\n<meta name=\"description\" content=\"A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession\" \/>\n<meta property=\"og:description\" content=\"A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\" \/>\n<meta property=\"og:site_name\" content=\"OpenBusinessCouncil Directory\" \/>\n<meta property=\"article:published_time\" content=\"2020-07-05T16:43:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-07-07T17:26:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.footballthink.com\/wp-content\/uploads\/2020\/07\/corona_representative_pti-770x433.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"433\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Hernaldo Turrillo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Hernaldo Turrillo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\"},\"author\":{\"name\":\"Hernaldo Turrillo\",\"@id\":\"https:\/\/www.footballthink.com\/#\/schema\/person\/b9610afd0759dc701187a7f622375c23\"},\"headline\":\"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession\",\"datePublished\":\"2020-07-05T16:43:50+00:00\",\"dateModified\":\"2020-07-07T17:26:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\"},\"wordCount\":601,\"publisher\":{\"@id\":\"https:\/\/www.footballthink.com\/#organization\"},\"keywords\":[\"business\",\"finance\",\"Small Business\"],\"articleSection\":[\"Business Resources\",\"Resources\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\",\"url\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\",\"name\":\"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession\",\"isPartOf\":{\"@id\":\"https:\/\/www.footballthink.com\/#website\"},\"datePublished\":\"2020-07-05T16:43:50+00:00\",\"dateModified\":\"2020-07-07T17:26:06+00:00\",\"description\":\"A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.footballthink.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.footballthink.com\/#website\",\"url\":\"https:\/\/www.footballthink.com\/\",\"name\":\"OpenBusinessCouncil Directory\",\"description\":\"Openbusinesscouncil\",\"publisher\":{\"@id\":\"https:\/\/www.footballthink.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.footballthink.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Organization\",\"Place\"],\"@id\":\"https:\/\/www.footballthink.com\/#organization\",\"name\":\"openbusinesscounsil\",\"url\":\"https:\/\/www.footballthink.com\/\",\"sameAs\":[],\"logo\":{\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#local-main-organization-logo\"},\"image\":{\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#local-main-organization-logo\"},\"openingHoursSpecification\":[{\"@type\":\"OpeningHoursSpecification\",\"dayOfWeek\":[\"Monday\",\"Tuesday\",\"Wednesday\",\"Thursday\",\"Friday\",\"Saturday\",\"Sunday\"],\"opens\":\"09:00\",\"closes\":\"17:00\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.footballthink.com\/#\/schema\/person\/b9610afd0759dc701187a7f622375c23\",\"name\":\"Hernaldo Turrillo\",\"description\":\"Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.\",\"url\":\"https:\/\/www.footballthink.com\/author\/hturrillo\/\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#local-main-organization-logo\",\"url\":\"https:\/\/www.footballthink.com\/wp-content\/uploads\/2017\/04\/logo_big.png\",\"contentUrl\":\"https:\/\/www.footballthink.com\/wp-content\/uploads\/2017\/04\/logo_big.png\",\"width\":1161,\"height\":250,\"caption\":\"openbusinesscounsil\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession","description":"A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/","og_locale":"en_US","og_type":"article","og_title":"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession","og_description":"A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.","og_url":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/","og_site_name":"OpenBusinessCouncil Directory","article_published_time":"2020-07-05T16:43:50+00:00","article_modified_time":"2020-07-07T17:26:06+00:00","og_image":[{"width":770,"height":433,"url":"https:\/\/www.footballthink.com\/wp-content\/uploads\/2020\/07\/corona_representative_pti-770x433.jpeg","type":"image\/jpeg"}],"author":"Hernaldo Turrillo","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Hernaldo Turrillo","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#article","isPartOf":{"@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/"},"author":{"name":"Hernaldo Turrillo","@id":"https:\/\/www.footballthink.com\/#\/schema\/person\/b9610afd0759dc701187a7f622375c23"},"headline":"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession","datePublished":"2020-07-05T16:43:50+00:00","dateModified":"2020-07-07T17:26:06+00:00","mainEntityOfPage":{"@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/"},"wordCount":601,"publisher":{"@id":"https:\/\/www.footballthink.com\/#organization"},"keywords":["business","finance","Small Business"],"articleSection":["Business Resources","Resources"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/","url":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/","name":"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession","isPartOf":{"@id":"https:\/\/www.footballthink.com\/#website"},"datePublished":"2020-07-05T16:43:50+00:00","dateModified":"2020-07-07T17:26:06+00:00","description":"A report out today on HR trends in 2020 has revealed the huge impact of COVID-19 on the state ofsmall business in Britain and the likely impact on the economy.","breadcrumb":{"@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.footballthink.com\/"},{"@type":"ListItem","position":2,"name":"15% of UK Small Businesses Plan to Cut Pay in Reaction to Pandemic Driven Recession"}]},{"@type":"WebSite","@id":"https:\/\/www.footballthink.com\/#website","url":"https:\/\/www.footballthink.com\/","name":"OpenBusinessCouncil Directory","description":"Openbusinesscouncil","publisher":{"@id":"https:\/\/www.footballthink.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.footballthink.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":["Organization","Place"],"@id":"https:\/\/www.footballthink.com\/#organization","name":"openbusinesscounsil","url":"https:\/\/www.footballthink.com\/","sameAs":[],"logo":{"@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#local-main-organization-logo"},"image":{"@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#local-main-organization-logo"},"openingHoursSpecification":[{"@type":"OpeningHoursSpecification","dayOfWeek":["Monday","Tuesday","Wednesday","Thursday","Friday","Saturday","Sunday"],"opens":"09:00","closes":"17:00"}]},{"@type":"Person","@id":"https:\/\/www.footballthink.com\/#\/schema\/person\/b9610afd0759dc701187a7f622375c23","name":"Hernaldo Turrillo","description":"Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist, he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.","url":"https:\/\/www.footballthink.com\/author\/hturrillo\/"},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.footballthink.com\/15-of-uk-small-businesses-plan-to-cut-pay-in-reaction-to-pandemic-driven-recession\/#local-main-organization-logo","url":"https:\/\/www.footballthink.com\/wp-content\/uploads\/2017\/04\/logo_big.png","contentUrl":"https:\/\/www.footballthink.com\/wp-content\/uploads\/2017\/04\/logo_big.png","width":1161,"height":250,"caption":"openbusinesscounsil"}]}},"_links":{"self":[{"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/posts\/12054"}],"collection":[{"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/comments?post=12054"}],"version-history":[{"count":6,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/posts\/12054\/revisions"}],"predecessor-version":[{"id":12119,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/posts\/12054\/revisions\/12119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/media\/12071"}],"wp:attachment":[{"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/media?parent=12054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/categories?post=12054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.footballthink.com\/wp-json\/wp\/v2\/tags?post=12054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}