The importance of shareholder protection is often overlooked. Insuring the shareholders of a business is critical for business continuity planning. Think about it, what would happen if a shareholder of your business suddenly died – what will be the implications for you and the business?
Many people insure their homes, cars and lives, but when in business you may not always see the importance of insuring the keyman of your firm. Losing a key player to critical illness or even death would be a critical time for your business and will most probably suffer tragic changes in dynamics.
Investing, upgrading and expanding are all key areas to a successful business, so more often than not, and especially SMEs, business loans are taken out to allow the next growth phase. But, what happens if a shareholder unexpectedly died – you lose a % of the loan covered, as this would now fall on the remaining shareholders. Protecting any business loan is, simply put, a smart decision.
Providing your employees benefits will always help with retention. One of the most important benefits is education, development and progression. Simply allowing learning webinars, workshops or mentoring in the workspace is a great benefit for most people and will increase your employee happiness.
Remember – in the UAE, gratuity applies!! It is a cost that increases over time, and can often be a surprise to employers, and then find themselves having to dip into cashflow to cover this. Understanding your liability towards gratuity and subsequently planning financially for this could save a lot of unexpected costs and cashflow hits.
Another great benefit for your employees is to commence a group savings scheme where employees can opt in/out and commit to saving and amount or a % of their monthly income for future goals. Encouraging employees to save money, commit to a goal and allowing them to do so in a trusted environment is a great benefit.
Life insurance is so important when it comes to financial planning. Having employers encourage this and put into place for all employees would help a lot of families in tough situations. Understanding the importance of insurance is essential, and putting this in place within your workplace is a strong benefit.
For those companies that are wealthy in cashflow should have their money working at all times. Keeping back an amount for essentials and/or emergencies is the basic financial planning for corporates but anything over this should be invested appropriately. There are great investments that a short to medium term that are appropriate for any cash just “lying around”.
Seminars are a great way of getting people together and providing them the opportunity to learn and develop in both their current roles and their careers. Having an annual seminar programme in place where employees can opt in/out and attend those relevant to them is a great way of showing commitment to your people.