Fromtheheart of thebusinessworld
SouthWest Dec/ Jan2024/25
FinanceEdition
FEATUREBankruptcy and bouncing back
C-Suite burnout:Is your business encouraging sabbaticals?
Behavioural Finance :understanding the psychology behind investment decisions
Covid lockdowns affected adolescents' brain structures, says research
How the Trump presidency might change the global economy
Wellness expert reveals the top tips on how to avoid work burnout over the festive period
FEATURELosing it all : Bankruptcy and bouncing back
Four ways to optimise your supply chain and help minimise business disruption
C-Suite burnout : Is your business encouraging sabbaticals?
5 expert tips UKbusinesses should implement to enhance security
Behavioural finance: Understanding the psychology behind investment decisions
COVID lockdowns affected adolescents?brain structures, says research
Arecent study reported the somewhat alarming observation that the social disruptions of COVIDlockdowns caused significant changes in teenagers?brains.
Using MRI data, researchers at the University of Washington in Seattle showed that the usual, age-related thinning of the cortex ? the folded surface ? of the adolescent brain accelerated after the lockdowns and the effect was greater in the female brain than the male
What are we to make of these findings?
Science shows the critical importance of adolescence for the brain. The notoriously different behaviour of teenagers is due to a large degree to the immaturity of their brain cortex During adolescence, substantial
changes take place to enable the brain to reach maturity One of these very important changes is the thinning of the cortex
Abreakthrough paper in 2022 delivered the first evidence that, in adolescence, there is a critical period of brain ?plasticity? (malleability) in the frontal brain region ? the area of the brain responsible for thinking, decision-making, short-term memory and control of social behaviour
Given the evidence of this sensitivity of brain development in adolescence, is it possible that the pandemic lockdowns really did accelerate harmful brain ageing in teenagers?And how strong is the evidence that it was due to the lockdowns and not something else?
James Goodwin
Professor in the Physiology of Ageing, Loughborough University
To answer the first question, we have to realise that ageing and development are two sides of the same coin. They are inextricably linked On the one hand, biological ageing is the progressive decline in the function of the body?s cells, tissues and systems On the other, development is the process by which we reach maturity.
Adverse conditions at critical periods of our life, especially adolescence, are very likely to influence our ageing trajectory. It is therefore plausible that the ?accelerated maturation? of the teenage brain cortex is an age-related change that will affect the rate of brain ageing throughout life.
So it seems there is an unpalatable and much more serious conclusion: the reported accelerated maturation ? though serious enough ? is not a one-off detriment It may well set a trajectory of adverse brain ageing way beyond adolescence
Now to the second question: the role, if any, of the lockdowns One of the central pillars of brain health is ?social cognition?: the capacity of the brain to interact socially with others. It has been embedded in our brains for15 million years It is not an optional add-on It is fundamentally important Interfere with it and potentially devastating health consequences result, particularly in
" ... the developmental brain biology of our precious teenage population has been damaged by these (lockdown) measures."
adolescents who depend on social interaction for normal cognitive development.
At the same time, adolescence is also a period of the emergence of many neuropsychiatric disorders, including anxiety and depression, with younger females at a higher risk of developing anxiety and mood disorders than males.
Devastating consequences
The socially restrictive lockdown measures appear to have had a substantial negative effect on the mental health of teenagers, especially girls, and the new study provides a potential underlying cause
There is little doubt that the pandemic lockdowns resulted in devastating health consequences for many people. To the litany of evidence, we may now add a particularly grim finding ? that the developmental brain biology of our precious teenage population has been damaged by these measures.
But perhaps the main message is that the wider effects of single-issue health policies should be considered more carefully. In the case of the known damaging effects of social isolation and loneliness on brain health, it?s not as if the evidence wasn? t there
How the Trump presidency might change the global economy
Donald Trump?s victory in the 2024 election ? and his threat to impose tariffs on all imports to the United States ? highlights an important problem for the global economy.
The USis a technological powerhouse, spending more than any other country on research and development and winning more Nobel prizes in the last five years than every other country combined Its inventions and economic successes are the envy of the globe. But the rest of the world needs to do everything in its power to avoid being too dependent on it
And this situation would not have been much different had Harris won.
The ?America first?approach of Donald Trump has actually been a bipartisan policy. At least since previous president Barack Obama?s policy of energy independence, the UShas been on a mostly inward-looking quest of maintaining technological supremacy while ending the offshoring of industrial jobs.
One of the major choices Trump made in his first term was to accept higher prices for US consumers in order to protect national producers by slapping high tariffs on almost every trading partner
For instance, Trump?s 2018 tariffs on washing machines from all over the world mean US consumers have been paying 12% more for these products
President Joe Biden ? in certainly a more polite way ? then increased some of the Trump tariffs: up to 100% on electric vehicles, 50% on solar cells and 25%on batteries from China.
Renaud Foucart Senior Lecturer in Economics, Lancaster University Management School, Lancaster University
At a time of climate emergency, this was a clear choice to slow down the energy transition in order to protect US manufacturing.
While Biden signed a truce with Europe on tariffs, it started a perhaps even more damaging battle by launching a subsidy race.
The USInflation Reduction Act for instance contains US$369 billion (£286 billion) of subsidies in areas such as electric vehicles or renewable energy. And the Chips Act committed US$52billion to subsidise the production of semiconductors and computer chips.
China, Europe and the rest of the world
This USindustrial policy might have been inward-looking, but it has clear consequences for the rest of the world China, after decades of mostly export-based growth, must now deal with massive problems of industrial overcapacity.
The country is now trying to encourage more domestic consumption and to diversify its trading partners
Europe, despite a very tight budget constraint, spends a lot of money in the subsidy race Germany, a country facing sluggish growth and big doubts on its industrial model, is committed to matching USsubsidies, offering for instance ?900 million(£750 million) to Swedish battery makers Northvolt to continue producing in the country.
All those subsidies are hurting the world economy and could have easily financed urgent needs such as the electrification of the entire African continent with solar panels and batteries Meanwhile, China has replaced the USand Europe as the largest investor in Africa, following its own interest for natural resources.
The incoming Trump mandate might be a chance to fix ideas
One might, for instance, argue that the full-scale invasion of Ukraine, and the thousands of deaths and the energy crisis that followed, could have been avoided had the Biden administration been clearer to Russian president Vladimir Putin about the consequences of an invasion, and provided modern weapons to Kyiv before the war
But the blame is mostly on Europe. Credit where it?s due, the strategic problem of becoming too dependent on Russian gas is something Trump had clearly warned Germany about during his first mandate.
There is a clear path forward: Europe could help China fix its overcapacity problems by negotiating an end to its own tariff war on Chinese technology such a solar panels and electric cars
In exchange, Europe would regain some sovereignty by producing more of its own clean energy instead of importing record amounts of liquid gas from the US It could also learn a few things from producing with Chinese companies, and China could use its immense leverage on Russia to end the invasion of Ukraine
The European Union could also work harder on what it does best: signing trade deals, and using them as a way to reduce carbon emissions around the world
This is not only about Europe and China
The number of people facing hunger is increasing, taking us back to the levels of 2008-9. War is raging in Gaza, Sudan, Myanmar, Syria, and now Lebanon. The world had not seen as many civilian casualties since 2010
For better or worse, it is unlikely that a Trump administration will reverse the path of lower USinterventionism It is also unlikely to lead any major initiative on peace, climate change or on the liberalisation of trade.
The world is alone, and America will not come to save it.
We do not know what will happen to the US Maybe the return of Trump will mostly be a continuation of the last ten years Maybe prohibitive tariffs or destroying the institutions that made the USsuch an economic powerhouse will make the US economy less relevant But this is something Americans have chosen, and something the rest of the world simply has to live with.
After decades of continuous improvement on all major dimensions of human life, the world is moving backwards.
In the meantime, the only thing the world can do is learn how to better work together, without becoming too dependent on each other.
Wellnessexpert revealstheto burnout over thefestiveperiod
- Over t he past year, around 20% of w orkers in t he UK have t aken t im e off w ork due t o poor m ent al healt h caused by pressure or st ress
- The fest ive season m eans em ployees are t aking m ore t im e off, leaving ot hers t o w ork overt im e just t o cover t he w orkload.
- The UK is at risk of becom ing a ?burnout nat ion? .
Many factors can contribute to feeling burnt-out at work including having a high workload, not feeling supported or listened to, lack of work-life balance, feeling stressed and pressured, and even being bullied or harassed
Not only can you be experiencing these struggles at work, but factors in your personal life can also contribute to feeling burnt-out such as the cost-of-living crisis, relationship problems, and health issues. Feeling burnt-out at work can have a serious effect on your mental and physical health and ultimately cause you to have to take time off work
The festive season is exciting, but it can also be stressful. During this time of year, more people on your team may be off, resulting in an increased workload and more pressure to meet deadlines
With this in mind, the experts at the all-in-one mental health solution Meditopia have outlined wellness tips to help you deal with these pressures and reduce the risk of experiencing burnout
What is burnout?
Burnout can be a variety of feelings and symptoms These can include:
- Feeling exhausted or drained of energy - Lack of motivation
- Not being able to do your job like you used to - Anxious - Irritable - Trouble sleeping - Headaches or stomach aches
Coping with burnout
Inform your line manager of your concerns
According to Mental Health UKaround 20% of workers have taken time off work due to poor mental health caused by stress This statistic emphasises the importance of speaking up and asking for help whenever you start to feel overwhelmed at work. Be open and honest about how you are feeling and the effect this is having on your mental health
Ask for support and don? t be worried about asking for help with your work if you need it This will help alleviate some of the pressure and stress you?re experiencing
optipsonhowtoavoidwork
Credit to source: meditopia
Outline what good mental health looks like to you
Take some time to think about what you're feeling and why. Then outline what you perceive to be good mental wellbeing and what needs to be done to achieve a good sense of mental well-being
Reflect on what is directly causing you stress and anxiety at work and away from work. Create a mental well-being plan to establish what you and others can do to offer support
Set boundaries
Setting boundaries will ensure a better work-life balance Define the hours you want to work and do not work beyond these hours Make sure to switch off when you finish working, go for a walk, read a book, or watch your favourite TV show It is also important to switch off during the weekends and annual leave, this is your own time and are not obligated to think about work
If your workload has increased due to more employers being on annual leave, be honest with your manager and ask for flexibility regarding deadlines
Get enough sleep
Adults need around seven to nine hours of sleep a night Lack of sleep can affect mood and further increase feelings of anxiety and irritability Sleeping whilst worrying about work can be difficult and you may find it hard to switch your mind off before going to bed. The
best thing to do is to wind down for a couple of hours before going to bed
Avoid screens as the blue light can disrupt sleep and try not to drink any caffeinated drinks in the afternoon Spend time in the evening doing something that relaxes you, read a book, or do some yoga and meditate
Take
annual leave
Make the most of the annual leave you are given and take it when you are feeling overwhelmed or experiencing the symptoms relating to burnout Continuing to work when you are feeling burnt out and exhausted is going to negatively impact your mental and physical health, causing you to have to take time off to recover Your mental wellbeing is most important.
Fatih Mustafa Çelebi, Co-founder and CEO of Meditopia, adds,
?Feeling burnt-out at work affectsyour mental and physical well-being and can cause you to feel unmotivated towardsthe work you do.
?According to Mental Health UK35%of working adultsadmit theydo not feel comfortable letting their line managersknowtheyare experiencing stressand anxietyat work. Therefore, it iseven more important to encourage employeesand employersto have open and honest conversationsaround burnout and howto manage feelingsof stressand pressure in the workplace.?
Losing it all Bankruptcy and bouncing back
Facing bankruptcy can feel like the end of the road, but for many, it?s the beginning of a powerful comeback story In this feature article, Craig Sergeant of Advance Copy Ltd, dives into bankruptcy, the stigma, overcoming the 'failure' of your business and bouncing back
It can feel like a slow, steady suffocation
Sales may start to dwindle. Debts might surge. A global market crash could happen. A whole host of factors can converge, leaving you looking deep into the void of business and financial oblivion
Everything you?ve worked hard for, everything you care about, it slowly slips away... then it?s gone.
And that might seem like the end of your business career. But is that really the case?
From high t o Low e
Way back in the first series of Dragon'sDen, there was a contestant called Rachel Lowe
Though she had no joy on the show, Lowe?s first venture, a board game series that included Destination London, became a roaring success
At least, that was until a new product missed its launch date ahead of a vital Christmas period
The business had staked everything on that product, and now there wasn? t enough cash flowing in Lowe hoped her bank would help her find the way out, but it was too soon after the 2008 crisis, so they refused all support.
The administrators were called in, Lowe was bankrupt, and her house was taken away.
Looking back, Lowe tells theGuardian it was her ?lowest point.?She believed that her career was over with her ?reputation irreversibly damaged ?
While it wouldn? t be the last the business world would see of Lowe, her reflections reveal two interesting aspects of entrepreneurialism in the UK.
The first is how British society itself views failure (more on that shortly), and the second is its devastating psychological effect.
Healt h im pact
Research by Mental Health UK reveals that 80%of small business owners report symptoms of poor mental health. Split by gender, that?s 77%of male entrepreneurs and 86%female.
But the most concerning part is that despite most active business owners admitting that they suffer, less than half of them (44%) have tried to get any sort of mental health support
Could this be a result of the insidious ?grind culture?we see in films and on social media? Is it even possible to work to excessive levels while displaying constant positivity, resilience, and perfectionism?Especially when success is never a guarantee?
And combined with this country?s social pressures and taboos around failure, it?s understandable that people in business feel the strain.
Fear and st igm a
In the UK, there are around 5 5 million small businesses, most of which have the owner as the sole employee.
The cold fact is that 20% of SMEs fail in the first year, with 60% doing so within three years That means that at any given moment, millions bear the extreme stresses of struggling finances Take ex-bookkeeping
Celebritieswho have filed bankruptcyduring their careers. L- R:ChrisEubank, Katie Price, Christopher Biggins, Walt Disney, LadyGaga, Mike Tyson, Kim Basinger, Will Smith, Donald Trump
business owner Victoria Pullen, for example
Writing on her blog, Pullen recalls when her small business finally hit the wall
She?d spent the previous eighteen months besieged by at least thirty calls a day from debt collectors She was also too terrified to open her front door in case bailiffs were there, ready to recoup her debts of £45,000 by any means necessary
While declaring herself bankrupt helped move her beyond such immediate fears, Pullen admits that it ?felt like the end?and like ?I?d be getting a massive ?You are a failure?sign tattooed on my forehead ?
Pullen paints a picture that perfectly encapsulates the UK?s stigma around failure And it highlights that change needs to happen. But where can we start?
Well, there might be some lessons to learn from our cousins across the Atlantic
The Am erican w ay
There?s anecdotal evidence that people in the USare more likely than Brits to view failed ventures as valuable learning experiences
On the surface, it seems a reasonable assumption, perhaps as a by-product of the concept of the American Dream ? the idea that anyone can make it.
For example, the phrase "Fail fast, fail often," generally attributed to the tech unicorn companies of Silicon Valley in California, promotes experimentation and risk-taking to drive innovation
Basically, make mistakes, learn from them, go again, and repeat until you reach your goal
"Success is not final, failure is not fatal:it is the courage to continue that counts."
WinstonChurchill
As the billionaire founder of Amazon, Jeff Bezos, says: "Failure and invention are inseparable twins To invent, you have to experiment, and if you know in advance that it's going to work, it's not an experiment "
Granted, American bankruptcy laws allow ailing businesses to reorganise and continue operating, so failure as an option is ingrained in their system. That?s in stark contrast to the more punishment-led approach of the UK?s corporate laws
So, it?s no wonder that Rami Cassis, founder and CEO of Parabellum Investments, recognises that British investors tend to be cautious, aiming to minimise risk. Meanwhile, Americans typically enter negotiations with optimism, eager to find reasons to do a deal
Cassis also says that USinvestors are also more willing to back entrepreneurs with a
history of failure, recognising the value of hard-earned experience Needless to say, on these shores, that would be more likely to set alarm bells ringing
St art again
Bankruptcy has affected some of the biggest names in the world But their public financial fiascos can be useful for business owners to observe and draw lessons from
Here in the UK and Ireland, people as different as George Best (footballer), Christopher Biggins (actor) and Peter Stringfellow (?nightclub?owner) ran up exorbitant debts ? whether through overspending, bad investments or trusting the wrong people
But the important point is that they all managed to rebuild In fact, Stringfellow?s empire was reportedly worth £30 million at the time of his death.
Plus, those lenient USbankruptcy laws have been used by none other than the actual current President of the United States of America, Donald Trump Not only that, but he?s also done it a whopping sixtimes
?I do play with the bankruptcy laws,?says Trump ?They're very good for me ?
Like him or not, there?s something to take from that
Bounce back
To fail in business isn? t fatal Yes, it hurts And while it?s happening, it may seem impossible to come out of it on the other side But it?s not the end.
Most entrepreneurs who?ve been through a business failure and bankruptcy will admit that it was terrible to experience. But they tend to look back on it as one of the best things that happened to them
They learned from their mistakes and channelled their experiences into innovation and reinvention
Just like Rachel Lowe from earlier, the former Dragon'sDen contestant After her board game business collapsed, she returned with a lifestyle company, SheWho Dares, followed by another games company. She was even awarded an MBE.
So, what?s Lowe?s advice on bouncing back?
?Giving up completely is where you'd be failing,?she says. ?Be realistic about the situation [...] try to ride the wave and don't expect recovery to come overnight Also, keep sight of what's most important in life ?
Business is business, and bankruptcy is not a reflection of you and your personal worth
So, if you face a setback, remember that a fall isn? t a failure so long as you rise again.
Weight loss jabspose potential risk in the workplace:expert reveals
The National Institute for Health and Care Excellence (NICE) final draft guidance on the weight loss jab Mounjaro has recommended it being given from March, however, it could take 12 years for everyone to receive it, the NHSdrugs advisory body says.
In October, Health Secretary Wes Streeting announced that trials of the weight loss jabMounjarowill take place in Greater Manchester to reduce worklessness.Streeting shared that people with illnesses caused by obesity are taking an extra four sick days off a year or are simply being forced out of work.
Mounjaro is the brand name of the drug Tirzepatide, which is approved to treat type 2 diabetes and can also trigger insulin creation and feelings of fullness.
Ozempic is the brand name of the drug Semaglutide, which is also approved to treat type 2 diabetes However, Wegovy is the only Semaglutide drug that is approved for use in weight management. Mounjaro and Ozempic are different drugs but work in a similar way.
Personal injury experts at Claims co uk reveal the potential risks that weight loss jabs pose to the workplace:
?While the proposal of weight lossjabsto get people living with obesityback to work seemslike the ideal solution, it isimportant to acknowledge the potential risksof this both to employeesand employers.
?With the rise in the use of Ozempicin the US, there have been manylawsuitsagainst the drug, with some patientsallegedly suffering from gastroparesis, which is stomach paralysis, sudden vision lossand an oesophageal injuryrequiring surgery. Furthermore, common side effectsof the weight lossdrug include muscle lossand nausea.
?These long and short-term impactsof the weight lossjab could not onlylead to sick daysfrom the workplace but also necessary adjustments, such asshorter hours The common side effectscould also significantly hinder the efficiencyof work or limit workers to veryspecificindustries
?It istherefore crucial to recognise that weight lossjabsneed to be met with caution and not asa ?quick fix?to get people living with obesityback to work, asthismayhave the opposite effect?
Credit to source: Claimsco uk
Four WaystoOptimise Your SupplyChain andHelpMinimise BusinessDisruption
credit to source: Cleveland Containers
From global shortages of materials to transport delays and lack of personnel, supply chains in the UKhave experienced several issues in recent years, with at least 20% of businesses experiencing some sort of disruption
93% of companies expect the pressure on supply chains in our country to persist throughout 2024, meaning their operations might suffer as a result But the good news is that, even if most organisations have made necessary adaptions to limit problems with their supply chain, further steps can be taken to enhance and refine the process
Cleveland Containers, a leading supplier of 40 ft shipping containers in the UK, offers expert insight on the best ways to optimise your supply chain, from investing in the right technology to fostering collaboration.
Plan carefully
First things first, planning ahead and carefully is arguably one of the most critical segments to ensure a smooth supply chain process
Hayley Hedley, Head of Commercial at Cleveland Containers, said: ?Planning in a timely fashion is crucial, especially when it comes to order fulfilment.
?This is because it will allow you to prevent potential issues with your logistics chain and avoid delays that could leave you without the raw materials and products you need to seamlessly carry out your operations
"What?s more, if you fail to plan your orders early, you may end up in a situation where you?ll have to ask for urgent deliveries ? and added costs can rack up pretty quickly
?Planning carefully includes looking at any potential process change, evaluating how it might impact the flow of your supply chain and whether it might affect your bottom-line gains
?This gives you the opportunity to prepare and account for worst-case contingencies Hopefully, they will never happen ? but if they do, you will have a plan of action to tackle them effectively and with confidence.?
Promote communication and collaboration
Communication and collaboration are the lifeblood of any organisation, as they create an environment where expectations are clear and everyone rows in the same direction
In addition to fostering cooperation among various departments within your business, it
is important to extend a culture of open communication with your suppliers and logistics providers. In fact, this can promote a stronger sense of trust, improve responsiveness to changes, eliminate confusion, and lead to a more fruitful relationship overall.
If you are using more than one supplier, communication and collaboration become even more essential. By staying in constant touch with all your suppliers, you can keep everything ticking as it should without the risk of delays or misunderstandings
Take advantage of analytics tools
Harnessing the power of data analytics is another great way to optimise your supply chain and give your business a competitive edge
Inaworldwhereeverything isconnected,supplychains arethelifebloodof businesses.
For example, analytical tools allow you to evaluate your sales figures, understand customer preferences, and predict future demands
Based on the data, you can then make more conscious and confident business decisions, such as forecasting demand and recalculating inventory levels to suit both your business and customers?needs
In short, analytics tools allow you to monitor customer behaviour, keep your stock at appropriate levels, and contact your supplier with more accurate orders and requests.
Embrace technology
Technology can act as a much-loved friend in terms of streamlining processes and optimising supply chains
Interestingly, almost half of UKbusinesses (46%) are not yet relying on modern tech, such as AI, robotics, machine learning, and augmented reality, in their day-to-day activities.
However, embracing innovations can have a wide range of benefits when it comes to improving speed and accuracy. For example, blockchain technology can automate repetitive and physically draining processes, increase visibility, and enhance decision-making within the supply chain.
What?s more, implementing specific software can aid inventory management, allowing to track locations in real-time and facilitate operations within the warehouse.
From planning in advance to promoting collaboration, there are many steps you can take to optimise your supply chain and ensure your business is operating constantly at its best
So, despite the challenges of recent times, having a few handy tips can make the all-important difference between struggling with disruptions and maintaining efficiency at prime levels.
C-Suite Burnout: Is Your Business Encouraging Sabbaticals?
In today?s fast-paced corporate world, the wellbeing of C-Suite employees is increasingly under threat
According to a landmark study by Deloitte, 70% of C-Suite executives interviewed were at risk of burnout and considered moving to organisations that offer better workplace cultures
This alarming statistic raises fresh questions about how businesses can improve their wellbeing support to help retain staff and precent burnout.
David Banaghan, Interim CEOat recruitment software experts: Occupop said: ?With 20% to 50% of employee turnover a result of burnout, burnout is a pressing concern for businesses and HRdepartments in particular.
?One option to combat this could be the use of sabbaticals which can have restorative health benefits while improving your internal staff retention statistics?
We explore how businesses can enhance their wellbeing initiatives, with a particular focus on the benefits of sabbaticals.
David Banaghan Co-Founder and InterimCEOat Occupop
The importance of C-Suite wellbeing
As the highest management level in any given organisation, C-Suite executives are often the driving force behind a company?s strategic vision and long-term success.
Despite this, C-Suite wellbeing can often be overlooked with 73% of C-Suite reporting they don? t feel able to take time off work and fully disconnect.
While 20% of UKworkers experience burnout, it can be particularly detrimental at executive level because it affects not just the individual, but also the entire organisation.
Stressed and overworked leaders may consequently struggle to make clear decisions, foster innovation and effectively guide their teams Over time, this can erode company culture and employee morale, leading to higher turnover rates and a decrease in overall performance.
To mitigate these risks, businesses need to take proactive steps to support the wellbeing of their executives. By doing so, they can retain top talent, ensure long-term leadership stability and create a more resilient organisation
Can sabbaticals be a powerful tool?
One of the most effective ways to support the wellbeing of C-Suite executives is through sabbaticals Areported 90,000 UK professionals are estimated to take a career break each year with a further 62% saying they?d take one if it were an option
Historically, sabbaticals have been rare outside of academic professions, yet businesses are starting to embrace their benefits: affording executives the opportunity to recharge and return with renewed energy and a greater sense of perspective.
The benefits of sabbaticals are well-documented. In the UK, 50% of respondents who took sabbaticals did so relieve stress: 43% of which reported improved mental health as a result
For executives, a sabbatical offers a rare chance to reflect on their personal and professional goals, explore new ideas and gain fresh perspectives This period of reflection can lead to greater clarity in decision-making, improved leadership skills and a deeper commitment to their role
"...burnout at executive level affectsnot just the individual but also the entire organisation."
Encouraging sabbatical uptake
Despite some clear benefits, many executives may ? understandably ? be hesitant to take sabbaticals. When asked why C-Suite executives were reluctant to take time off, 24%reported having too much work to do while 22%questioned whether others would be able to cover for them while away
Businesses can play a crucial role in encouraging sabbatical uptake by addressing these concerns and fostering a culture that values and supports employee wellbeing at all levels.
Here are some practical tips to encourage uptake:
Create a sabbatical policy
If you are considering employing a sabbatical policy, be clear around what expectations are Having a clear and well-communicated sabbatical policy is the first step in encouraging executives to take time off.
The policy should outline the eligibility criteria, duration of the sabbatical, and any expectations around communication and workload management during the break
By providing a structured framework, companies can make it easier for executives to plan their sabbatical and feel confident that their absence will not negatively impact the business.
Promote the benefits
Businesses can promote the mental and physical health benefits of taking an extended break through internal communications, wellness programs and workshops.
By highlighting the positive impact that a sabbatical can have on stress levels, companies can make a case for why executives (who may be silently suffering) should open-up and prioritise their wellbeing
Provide support for roles in transition
Clearly, not all businesses will be set up to allow for sabbaticals and this may only be done in exceptional circumstances One of the main concerns around sabbaticals will be how responsibilities are managed in an employee?s absence.
To address this, businesses can provide support in the form of succession planning, cross-training or interim leadership appointments.
By ensuring that there is a clear plan in place for managing the executive?s duties,
companies can help alleviate the anxiety around taking a sabbatical
Conclusion
In an era where nearly 70%of C-suite executives are considering leaving their organisations for better wellbeing support, businesses cannot afford to ignore the importance of executive health
Asabbatical may be an effective means of addressing this and is not just beneficial for the individual ? but your organisation as a whole
5 Expert Tips UK Businesses Should Implement to Enhance Security
The 2024 UKGovernment Cybersecurity Breaches Survey revealed that 50% of businesses had suffered a cyber-attack or security breach in the previous 12 months. This cybersecurity awareness month, cyber protection experts from e-commerce hosting provider Hypernode have highlighted the importance of cyber hygiene for UK businesses and revealed their key practices for staying safe online as a business.
What is cyber hygiene?
Cyber hygiene can be explained as a set of practices to maintain system health and security in relation to a business's online activities. Like physical hygiene, maintaining cyber hygiene entails a set of regular preventative measures.
5 Key practices
Antivirus and antimalware softwareInstalling antivirus and antimalware is an obvious place to start for protecting against cyber threats. These tools help detect malicious programs that can compromise data Viruses and malware are constantly
Credit to source: Hypernode
evolving, so it is crucial to also keep this protective software up to date
Be cautious of phishing- Phishing is a common cyber-attack in which criminals use deceptive emails, messages, or websites to trick individuals into providing sensitive information It is by far the most common type of cybercrime, with 90% of businesses that have experienced at least one type of cybercrime falling victim to phishing Awareness and caution around possible phishing scams is crucial within all businesses.
Back up and encrypt data- Backing up important data and storing it securely will be helpful in the event of a data loss or ransomware attack. Particularly sensitive data, meanwhile, ought to be encrypted to ensure it can only be accessed by authorised parties.
Secure Wi-Fi, strong passwords, and MFAWhile seemingly obvious, these three simple steps, which are often neglected, are absolutely key to good cyber hygiene.
Unsecured Wi-Fi networks are vulnerable to attack from cybercriminals who may intercept data or gain access to internal systems Similarly, weak passwords are susceptible to being hacked Strong, unique passwords that are different for each online account should be used. MFA(Multi-factor authentication) adds a layer of security to data and internal systems, keeping out anyone who should not be able to access them
Educating all employees- Perhaps the most important point is that a business?s security is only as strong as its weakest link, and a cyber-attack can target any employee. Providing cybersecurity training to all employees is crucial to ensuring the security of a business as a whole
Milan Bosman, Commercial Director of Hypernode, spoke regarding the tips: ?Warningsfrom experts, who have predicted the rise in cybercrime in the UK, have certainlybeen proven valid. Globally, cybercrime isexpected to surge 15% throughout 2024, and 2023government statisticsalreadystate that 32%of UK businessesexperienced cyber-attacksat least once a week. With this, the importance of maintaining cyber hygiene continuesto grow.
?With October being cybersecurityawareness month, it?scertainlya good time for businesseswhose regulationsare not up to date to reviewthem and to ensure all staff are adequatelyeducated around threatsto avoid breachesin security.?
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Behavioral Finance: Understandingthe PsychologyBehind Investment Decisions
Behavioral finance, a rapidly growing field within finance, examines the psychological influences that shape investors?decisions, often leading to irrational financial choices. Traditional finance theories, such as the Efficient Market Hypothesis, assume that investors are rational and markets are efficient However, behavioral finance challenges this notion by highlighting cognitive biases and emotional influences that often drive investors?behavior away from rationality
One of the key concepts in behavioral finance is loss aversion This principle, identified by psychologists Daniel Kahneman and Amos Tversky, suggests that people feel the pain of losses more acutely than the pleasure of equivalent gains For example, losing £100 feels more painful than the pleasure derived from gaining £100 This aversion to loss can lead investors to hold onto losing stocks longer than advisable, hoping they will rebound, instead of cutting losses and reallocating their funds This behavior, known as the disposition effect, often results in significant financial setbacks as investors wait for an unrealistic recovery.
"Thebest investment you canmakeisan investment inyourself.
Themoreyoulearn,the moreyouearn."
Warren Buffett
Another crucial bias in behavioral finance is overconfidence Many investors believe they can consistently beat the market due to their research, intuition, or skill, even though evidence suggests that consistently outperforming the market is extremely difficult This overconfidence often leads investors to make overly risky bets, engage in excessive trading, or ignore diversification principles, ultimately exposing them to significant losses Overconfident investors may also downplay the risks associated with volatile assets, leading to a portfolio that is more fragile during market downturns.
Herd behavior is another phenomenon in behavioral finance where investors follow the actions of the majority, even if those
actions are not aligned with their individual analysis or goals For example, during market bubbles, such as the dot-com bubble or the more recent cryptocurrency surge, investors tend to follow the crowd, assuming that if everyone else is investing, they must be making a sound decision However, this herd mentality often leads to overpriced assets and significant losses when the bubble bursts. Herding can be highly detrimental as it leads to volatile markets and can cause individuals to invest based on hype rather than fundamentals.
In addition to these biases, anchoring plays a significant role in shaping financial decisions. Anchoring occurs when investors fixate on an arbitrary reference point, such
as a stock?s historical high price, and make decisions based on that reference rather than the current market context. For instance, if an investor sees a stock that was once valued at £100 but has since dropped to £50, they may view the lower price as a "bargain," even if the stock?s fundamentals do not justify a recovery. This reliance on an arbitrary anchor often clouds objective analysis, leading to misguided investments.
Behavioral finance not only helps explain why investors sometimes make irrational decisions but also provides tools and strategies to counter these tendencies By becoming aware of biases like loss aversion, overconfidence, herd behavior, and anchoring, investors can approach their
decisions more objectively Many financial advisors now incorporate principles of behavioral finance to help clients avoid these pitfalls, encouraging strategies like diversification, long-term planning, and regular portfolio reviews
Understanding behavioral finance can empower investors to make better financial decisions by acknowledging and managing their psychological influences Awareness of these biases allows investors to recognize emotional triggers and, ideally, make more rational, informed decisions aligned with their financial goals, reducing the likelihood of costly mistakes
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