Archives For Sarah Hathaway

SH  01

By Sarah Hathaway, head of ACCA UK

We teamed up with the New Statesman to discuss this subject matter at the three party conferences – see a link to the report at the bottom of this blog, but here is my takeaway.

I think you would be hard pressed to find someone who does not think business cares about politics; politicians set the framework in which business operates, a working relationship is paramount. But do politicians care about business; does it only care about a certain type of business? This was the broader theme for the discussion.

The last few years have been difficult; the pressure on the public purse was always going to lead to trade-offs and some issues taking prevalence. And our members support austerity (mild or severe) if imposed at the right pace.

However if recovery is to continue, access to finance is key. As an organisation that supports members from small to large businesses, we recognise that their needs are distinct but that they are also intertwined; businesses do not operate in silos, they are party of a larger supply chain. We are keen to push all three of the parties to continue to champion alternative forms of finance and access to it. We know from our members that this is crucial and the small business bill has taken steps to improve this. There is some evidence that all parties recognise the importance of it but it’s about making sure the practical regulation works for business.

The issue of Europe was unsurprisingly part of the debate at Conservatives; as a global organisation we recognise the need for stability, that’s what our members want and that’s what is needed for businesses to attract long-term sustainable investment. Why would we cut ties with our biggest trading partner? That’s not to say reform isn’t needed, but reform from within not from the outside.

Of course discussing Europe involves a debate around immigration; that debate must be an honest one. We have a skills gap and so while we are working to plug that over the medium-term, we still need to fill it in the short-term. We believe all parties need to recognise that and taking students out of the net migration figure and treating them as a talent pipeline for business will help achieve that.

Ultimately politics involves trade-offs and risks, much in the way business does, but it is about calculated risk, evidence and taking a long-term view.

Politics is at its best when it recognises that it doesn’t have all the answers and that it shouldn’t try to. Instead as with any good relationship, the success comes through hard work, collaboration and concession on both sides.

To download a copy of the report click here.

Advertisements

SH  01

By Sarah Hathaway, head of ACCA UK

For those of you who have not yet seen, ACCA UK has launched Who accounts for social mobility? This paper was based on a survey of our members and students. Firstly thank you to all of you who took the time to take part in the survey your feedback was very insightful and highlighted what diversity there is among both students and members, across geography, age, gender and background.

Open access is at the heart of what ACCA believes; an open society is a fair one. We conducted the survey to get a greater understanding of whether what we are doing to encourage this is working, and to get a clearer picture of what you think. From the results, and other research and initiatives we are involved in we believe the government and business is not doing enough to ensure that everyone can get to the top.

Last Monday the government’s Social Mobility and Child Poverty Commission launched its annual State of the Nation Report which looks at the UK as a whole to see whether the government is doing enough to ensure it reaches its child poverty targets and that social mobility is improving. Unfortunately much like our report, the Commission found the government to be lacking; we do face losing a talented generation if we do not do more.

The government claims to be focused on an inclusive growth agenda, but studies demonstrate that western countries with low social mobility have lower economic growth. If both the government and the opposition do not begin to take social mobility more seriously, we will become a permanently divided nation. To start with we would like to see a commitment from all three of the political parties to end the abuse of unpaid internships and ensure that businesses are advertising them freely and fairly to all. We were concerned to see that 43% of those who took our survey said they were unpaid, it simply isn’t good enough and both government and business must end this practice.

Secondly we would like to see a commitment to more effective dissemination of careers advice through the education system. As our own social mobility research shows, very few accountants find their way into the profession via their school or university. Improving teachers’ and careers advisers’ understanding of accountancy would make a significant contribution to improving access to the field, thus increasing social mobility.

Ahead of the UK general election in May, we will be working with the government and the Commission to look at what we believe should be done and how we can contribute. We are going to be hosting several roundtable discussions in Scotland, England and Wales working with a whole host of organisations to look at what is required to make sure that no one feels there is a glass ceiling.

Do keep an eye out on Twitter, Linkedin and Google+, as well as here, where we will keep you updated on our progress.

SH  01

 

By Sarah Hathaway, head of ACCA UK

Last week I had the honour of being part of the judging panel for the British Accountancy Awards 2014. Since the Awards were re-launched four years ago, ACCA has been proud to be involved as the lead partner and we are pleased to have seen a year on year increase in terms of both the number and quality of entries received.

The most interesting and important categories for me have been those which recognise the ‘Independent Firm of the Year’ across the UK’s various regions. These provide a valuable opportunity for smaller practices to demonstrate how they have both adjusted to and thrived during what have proved to be challenging times for our economy. I was also a judge in 2013 and I continue to be delighted to see great examples of the focus, drive and innovation that has led to increases in turnover, profit and – most importantly of all – client satisfaction.

If you are part of a practice which has a good story to tell, please seriously consider entering in 2015. For a flavour of what it’s all about, why not consider attending this year’s awards’ ceremony in London on Tuesday 25 November? You will be able to meet some of the short-listed firms, individuals and previous winners. I promise you will be inspired!

For more information visit www.britishaccountancyawards.co.uk

SH  01

By Sarah Hathaway, head of ACCA UK

The results of the Social Mobility and Child Poverty Commission survey give cause for grave concern and demonstrate that not enough is being done to prevent Britain remaining an exclusive ‘club’ at the top of our society. Relative social mobility, the extent to which an individual’s chances depend on their parent’s class or income, seems to be shrinking.

This summer Thomas Picketty’s book Capital: in the 21st Century reignited a debate for western governments to address the issue of inequality. The book has ignited political discussion across Western Europe; Picketty’s central thesis is where the rate of return on capital outstrips economic growth, wealth inequality ineluctably rises. The impressive amount of data he uses to back up his thesis is why the book has received such acclaim. However despite the excitement which surrounded the book and a call for action, today’s survey results are a reminder that clearly concern about inequality and social mobility has not translated into action. Or that any action has taken effect?

In our recent submission to the Social Mobility and Child Poverty Commission’s State of the Nation report we called on an end to unpaid internships and a recent survey of our members showed us that not only do our members feel strongly on this issue but 76% of the 1,500 surveyed also felt their companies should pay the living wage. Social mobility cannot be viewed in isolation and the level of income inequality is an issue that all three of the parties should address. The report recognises that practical steps can be taken to prevent the drive towards improving social mobility settling into a pedestrian pace.

The commission has rightly called on government to collect data on its staff and lead by example and we hope the government will take note of this. ACCA is currently working to do the same; a founding feature of ACCA is accessibility and we continually review our policies to ensure that our qualification is open to everyone whatever their background.

Today’s results demonstrate that we cannot afford to soften and settle into a pedestrian pace, but the reality is that change is slow. Inter-generational mobility, as the name suggests, takes a lifetime to achieve. There is a need for practical solutions and we urge organisations of all sizes to adopt the Professions for Good Social Mobility Toolkit. The toolkit does not claim to be a silver bullet but is designed for organisations to be able to tailor it according to resource. Built from the ground up, the toolkit is fit for use by small employer organisations with no dedicated HR functions, with easy low-cost recommendations.

The SMCP Commission’s survey has done well to put further pressure on governments to act – public bodies must ensure they do too.

ACCA will be publishing a report on social mobility in the autumn.

SH  01

By Sarah Hathaway, head of ACCA UK

For many young people, this time of year is filled with anticipation, maybe even fear, and then hopefully reward once those hard-fought results are confirmed. Those of us that took our GCSEs and A levels over 20 years ago may struggle to remember the details of results day, but I for one can remember being paralysed with indecision as to ‘what next’.

It’s still the case in many schools that university is ‘the’ recommended destination, at any cost, but even then it’s which university, which course, which career. You would hope these students are also aware of other routes to a valuable career – school leaver schemes, apprenticeships, further education, professional education… ‘How do I make that seemingly all-important decision’ and ‘who do I turn to for advice’ are definitely on the FAQ list for August. However, new research from The Student Room says there is a “black hole” in school careers advice.

From a personal perspective, I usually offer a couple of pieces of advice when I meet young people looking for some insight. Firstly, never assume your next decision is your last. Where your career path starts does not dictate where it ends up. I can speak from experience there – and you will have many opportunities to change direction, specialise or do further study. Modern careers are not as linear as they used to be, and employers do value a wide range of experience, if you know how to sell them the benefits of that variety in experience.

Secondly, seek advice and information from as many different sources as possible. That may be parents, friends’ parents, their work colleagues, your work experience mentor, teachers, careers specialists. There are often lots of people willing to share their own perspective, if you just ask. But everyone’s knowledge is limited in one way or another, so gathering as much as possible before making a decision is important.

And this is true for many people. At ACCA we have people joining us who have made a decision to be an accountant in their 20s, 30s, 40s, even 50s! People who may have been working in finance for a while who have decided to build on their experience, mums coming back into the workplace, those who have worked in an entirely different sector and want a change. The majority of these people too will have tapped into advice from a number of different contacts or places. And they’ve made a decision that, at that point in time, a professional accountancy qualification is the route for them. If you’re 18 and looking for an alternative to university, it may be the right decision for you too.

Many of the A-level students who get their results this week are on their way to becoming a finance professional without even realising it. Three GCSEs and two A levels (including maths and English) is enough to pursue ACCA’s globally recognised qualification, which is a badge of credibility with employers.

Find out more about studying to become an ACCA finance professional.