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2024 is set to be one of the busiest years in the Insolvency sector.
Since the Pandemic, we have all seen an increase in corporate insolvencies. All of the companies that should have been entering proceedings instead of being propped up by government loans and grants, have finally been making their way out of the woodwork; together with those that now cannot pay back their loans, has meant a significant increase in the workload.
At the end of Q4 of 2022, we saw a staggering rise of 57% corporate insolvencies from the preceding year. Recently published figures for 2023 have shown a further rise of 14% from 2022, with Creditor Voluntary Liquidations reaching a record high.
PWC's latest forecast for the year ahead is predicting a further increase on last years stats, with an estimated 30,000 corporate insolvencies. This would mean a rise of approximately 19% on 2023's figures. The majority of the insolvencies are anticipated to be smaller business and will therefore, have a huge impact on the influx of work for the small to medium sized Insolvency firms. To read PWC's full article, visit www.pwc.co.uk/press-room/press-releases-pwc-uk-economic-predictions-2024.html .
What does this mean for our clients?
The majority of our clients have already been witnessing an increase to their workload and recruiting accordingly. However, if your strategy to wait until the work is through the door before recruiting, you could be facing numerous difficulties.
Your existing employees are likely to be be overworked and burdened, if there is no reprieve from additional staff members. As a result, they may inevitably look for alternative employment, thus increasing your workload further. It is also worth bearing in mind that, whilst you can then try and recruit to replace that staff member, it can be a time consuming process and it will involve a settling in period. Therefore, there will undoubtedly be an interim period were the workforce is diminished. Another downside to delaying the recruitment process, is that any new employee is likely start in a stressed environment, which could also affect retention of staff.
There is a fierce competitiveness for new employees at present, with a number of firms increasing their workforce in response to the surge of appointments and upcoming challenges. A suspension in recruitment could result in staff not being available when vital to the business.
To recruit early saves time and money; being understaffed has an adverse effect on profitability and billing potential.
Contact us if you need assistance placing the right people into your team.
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