As we start a new year, it’s time to get our finances, both personal and professional, in order. Everyone should take a close look to determine the changes we need to ensure a prosperous 2022. A new year always offers a flurry of activity and challenge, and at most companies, it can feel like you’re juggling a million things. Yet if you know what tasks to concentrate on for the new year, it will seem far less daunting. Here are some focus areas to implement, and business adjustments and changes to put your company on the right financial track for 2022.
Focus on Your Hiring Needs
As we surpass the second year of the global pandemic, businesses struggle to keep employees. “The Great Resignation” hit a number of companies hard, leaving several open and available jobs that need to be filled before a corporation can begin to grow and adapt to the changing needs and wants of its consumers.
You might need to reassess how much money you spend each year on hiring, training and retaining employees. If you find your company is lacking in any one of these areas, it is time to take a closer look at your budget to determine if there is any wiggle room. Alternatively, it may be time to reinvest in your current employees to keep them working for you.
Another essential aspect to consider when looking closer at your new year hiring needs is whether your company plans to expand into new areas or needs to hire people for a new business line. If this is the case, start allocating cash to ensure that you get the best and brightest candidates for your new venture.
Think About Your Benefits
Benefits play a tremendous role in helping keep employees happy and satisfied. A new year is the perfect time to take a closer look at what you offer your best workers and consider whether you should shift spending in order to keep employees happy.
Once you’ve identified the issues that prevent you from hiring the best people, or realize that your business is expanding and needs to hire more employees, consider how you should shift and change your benefits to accommodate the new workforce.
Beyond benefits, you likely need to reassess how you offer support to employees who are struggling to balance work and home life. One of the major concerns emerging in recent years is that employees are dealing with mental health issues that arose because of the pandemic. Many are still trying to balance their children’s schooling with their own workloads, and many have had family members who have fallen ill or died from COVID-19. Companies can help support employees who have faced and are facing such tough times by getting smarter about the benefits and packages they offer.
Consider Your Technology and Security Needs
Since the world of work has fundamentally changed thanks to the pandemic, executives need to consider how to address the ongoing and evolving technology and security needs of their company. That likely means performing an audit to find out where the holes in either aspect might lie, then assessing the costs to update and fix those gaps.
We’ve all suffered from Zoom fatigue at one point or another. Besides being tiring, many of these platforms can leave your company vulnerable to a wide variety of security and technology risks. How do you plan to tackle the continually evolving technology and security aspects that come up as the pandemic continues to stretch on?
Security goes beyond how your employees use their technology; it also applies to your office buildings, factories and workshops. Keeping up with the constantly evolving COVID-19 protocols that vary from city to city is daunting. Doing business into 2022 and beyond requires companies to account for this.
Think About Your Funding
Finally, and most importantly, it’s vital to take a closer look at your funding and budgets. It’s great to take some time to assess all the places you and your company might be able to improve in 2022, but without cash or access to cash, it could prove to be a fruitless exercise. Consider what your growth trajectory looks like for your company. In many cases, you’ll need to invest in new hires, new equipment or even new buildings to continue to grow your business, and that all takes capital. It is always worthwhile to get a handle on the sources you might be able to tap if you need access to cash to make a move.
As with any financial exercise, focus on the details to get a full and complete picture of your company’s health. Once that is done, you can make an informed decision.
The Bottom Line on How to Prepare for Prosperity
Though the beginning of the year is always filled with plenty of to-do’s, business leaders must take the time now to prepare for a prosperous 2022. This means tackling the areas of finance that need adjustment so you can implement any needed changes. Your financial checkup may include reassessing your hiring needs, making sure your benefits still align with the current market, and reconsidering your technology and security needs. You will also want to take a close look at your books and any outstanding debts you may have to see if you can reduce your debt load, refinance or utilize any tax advantages that might be available. By taking a close look at these areas of finance for your company, you can ensure that your business will prosper in the future.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.