By Kirstie Penk
Growing a business is no small feat. As a CEO, you’re already juggling multiple roles, managing tight budgets, and striving to maintain a competitive edge. Every policy change can feel like yet another hurdle in an already challenging race. The recent changes to National Insurance contributions (NIC), therefore, have only added more pressure – increasing operational costs, and make hiring riskier and more expensive.
But how do you stay ahead and grow your business in this challenging market without expanding your team and bringing in the best people? Now is the time to rethink how you recruit.
The impact of National Insurance changes on SMEs
The government’s reductions in employee NICs were naturally positioned as a positive change. For employers however, now with increased obligations, the changes have only increased the burden. And this is particularly felt in the SME market.
CEOs wanting to scale are now scrutinising every expenditure, delaying hiring plans, and making tough decisions about where to cut back. This can lead to a reluctance to expand teams, which in turn affects the ability to scale efficiently.
It’s a challenging landscape, and it requires innovative thinking to navigate successfully. As you face these financial pressures, it’s crucial to find smarter ways to manage your resources without compromising on the quality and efficiency of your operations.
Rethinking resource allocation in strategic functions
Given the financial pressures and the increasing costs associated with traditional hiring, it’s time to rethink how you allocate resources, especially in critical functions like legal support. Having strategic, business-focused legal support is crucial for any business with growth plans. However, maintaining a full-time in-house lawyer is just not feasible for many SMEs.
This is where innovative staffing models, such as fractional General Counsel (GC) services, come into play. By rethinking resource allocation, you can benefit from experienced, board-level legal support without the full-time costs.
Understanding the fractional General Counsel model
So, what exactly is a fractional General Counsel? A fractional GC is an experienced legal director who works with your team on a part-time or flexible basis. Unlike traditional full-time hires, fractional GCs are embedded in your team as needed, providing on-demand legal expertise without the associated employment liabilities. This model offers the flexibility to scale legal support up or down based on your specific needs, ensuring you have access to top-tier legal advice without the full-time cost.
Why fractional GCs are a smart solution for scaling SMEs
Adopting a fractional GC model can be a game-changer for growth-stage SMEs. Here’s why:
Cost-effective: You get access to experienced legal professionals without the full-time salary and NICs, significantly reducing your overhead costs.
Flexible: Fractional GCs can adapt to your business’s needs, scaling their involvement up or down as required.
Expertise on demand: You gain the benefit of commercial, business-focused legal advice exactly when you need it, without the long-term commitment.
Tailored to your business: Unlike private practice solicitors, a fractional GC is embedded in your business, understands your growth ambitions and can contribute to strategic development knowing your risk appetite and long-term goals.
Focus on Growth: By offloading the legal burdens to a fractional GC, you can focus on core business activities and strategic growth initiatives.
No Employment Liabilities: You can avoid the additional costs and complexities associated with full-time employment, including NICs.
At TLD, we specialise in providing fractional General Counsel services tailored to the needs of scaling SMEs. We understand the unique challenges you face and are here to offer smart, cost-effective solutions to help you navigate the financial pressures and continue to grow your business.
If you’re looking for ways to stay agile in a tightening economy, maybe don’t hire. Consider fractional support. Get in touch on 020 3056 8538 or info@thelegaldirector.co.uk for a chat to find out more.
