The telecoms company that powered the nation’s remote workforce, BT Group, is now reversing course. That’s according to chief executive Allison Kirkby, who has become the latest leader to pull the plug on home working and demand a return to the office (RTO).

Over the weekend, the Financial Times reported that the firm had issued an internal memo confirming it will crack down on its existing hybrid work policy of “three together, two wherever” in order to encourage closer collaboration between colleagues.

Last fortnight, Starling Bank sent a similar memo to hybrid staff, ordering them to work for a minimum of 10 days a month in-office. The change reportedly triggered a wave of resignations, raising questions over how the BT Group policy will affect the workforce.

BT’s remote work irony

BT Group has made a lot of money from remote teams who rely on its network to work from home. But despite having boasted about “enabling hybrid and remote working across the globe for over ten years”, the firm is taking a tough stance for its own business model.

While its hybrid policy is not new, the business, which currently employs around 50,000 UK office workers, has said it will begin to hold staff “accountable for following” its hybrid rules. Kirkby’s memo was also sent out to office-based employees in Ireland, India and Hungary.

The memo reveals that 35% of BT’s admin staff were “only coming in one day a week or not at all”. On average, employees were working 1.7 days a week in-office.

According to the Financial Times, BT Group will now share badge ‘tap-in’ data with managers. When office workers scan in and out each morning, their movements will be recorded so that senior management can see who is following the new rules and who is not.

It is unclear what the repercussions for low office attendance will be at BT. Other employers who have introduced similar RTO mandates, such as Dell, have withheld promotions and pay rises from workers who continue to base themselves at home. Google has also previously said it will consider office attendance as part of their annual performance reviews.

BT bets on hybrid model

The ‘Dell approach’ has naturally led to backlash from employees on the side of at-home workers, who are loudly protesting the return to office. But Kirkby also seems confident that hybrid, rather than fully in-office work, will improve results for the FTSE 100 company.

She described findings from a BT report which apparently showed that workplaces where attendance is at least three days a week were highest performing and most engaged.

Kirkby said: “Current attendance levels are not going to help us to transform BT Group, or nurture a more integrated, collaborative culture. This is essential for the future of our business, the development of our people, and the service of our customers.”

Employers are increasingly accepting that a hybrid approach is the best compromise for staff morale and business performance. Startups data from the start of the year suggests that remote and hybrid jobs are less at risk of layoffs than full-time office roles.

Some large employers are clinging onto office work, however. That includes Amazon, which has demanded that admin staff return to the office full-time, also from next January.

Tech troubles?

Monitoring employee attendance might be increasingly normalised across UK workplaces, but that doesn’t mean it is without cause for concern. Chief among these concerns is the impact on organisational culture.

When Starling Bank mandated a minimum of 10 days of in-office work per month for hybrid employees, they began resigning en masse. Amazon has also faced criticism from workers after it wrongly accused some team members of not meeting attendance requirements.

Future hires could even be under threat. John Ferrett, a national secretary at the union Prospect, told the Financial Times the move could be “detrimental” for recruitment. “Of particular concern to us is the use of passcard data as an enforcement and monitoring tool for office attendance which we see as wholly disproportionate,” Ferrett said.

Relying on senior employees to enforce the rules is also a risky move for BT Group. Data from Owl Labs suggests that many line managers are secretly allowing their reports to work from home, in spite of an official return to office request.

Next year will likely deliver many learnings for SMEs. As more companies grapple with the evolving workplace landscape, the effectiveness of such mandates will be closely watched by companies seeking to establish their own flexible working policies in 2025.

Plenty of companies are doubling down on fully remote work. Read about seven companies that have rejected the return to office.

They don’t call it “January blues” for nothing.

After the festivities of Christmas wear off, January can feel like a long, cold stretch of grey days, lack of motivation and dwindling energy.

But if becoming a digital nomad is on your New Year’s resolution list and you’re keen to escape to better weather, these destinations should be at the top of your travel plans.

Thailand is the hottest spot to escape the winter blues

Unlike the UK, where the weather is often dull and wet, Thailand offers quite the opposite when you visit in January. While temperatures vary between different regions, the average maximum temperature is around 31C (87.8F), with low humidity and minimal rainfall.

The country’s capital, Bangkok, was ranked as the top choice for digital nomads, according to research by print-on-demand company Printful.

Not only does it offer better weather, but it’s affordable too. The average cost of living per month is $876 (£692.45) while Airbnbs cost around $1,561 (£1233.92) monthly.

Bangkok doesn’t fall short on fast WiFi either, offering an impressive speed of 256.21 megabytes per second (Mbps), making it super reliable for remote work. The city is also known for its abundance of coworking spaces, which cost $210 (£158.88) per month, as well as cafes and restaurants equipped with comfortable work environments and power outlets. 

What’s more, when you’re done with work, there’s plenty to do – from visiting stunning temples and exploring local markets to chilling at riverside bars or taking a boat ride on the Chao Phraya River.

But if you don’t fancy Bangkok, there are plenty of other hot countries you can work remotely from, though it’s important to note that not all offer specific digital nomad visas. Here are more of the hottest destinations to escape to over winter:

India is the top choice for affordability

If Thailand is a little out of your budget, then New Delhi in India could be the best option. Similar to Thailand, January is a dry month in India, with a maximum temperature of 30C (86F) and 15C (59F) at night.

The average cost of living is also significantly lower than Bangkok, with a monthly cost of $440 (£347). Co-working spaces are also budget-friendly at just $151 (£127.24) per month, providing productive environments with reliable internet to keep you working efficiently. Plus, you can find a decent Airbnb for around $1,608 (£1,342) a month.

But it’s not just the low cost that makes New Delhi an appealing place to work, as the city itself has a great blend of culture, history and modernity. Whether you’re into exploring ancient monuments like the Red Fort or Qutub Minar or want to sip chai at a street-side cafe, there’s always something to do during your downtime. The food scene is another huge draw, offering everything from street food delights to high-end dining. 

While India doesn’t have a specific visa for digital nomads, it offers an eVisa that allows remote work while living in the country. This is valid for up to five years, but the maximum stay in the country is 90 days at a time.

Other affordable destinations include:

Jamaica is set to be the dream destination for 2025

According to Printful’s research, Jamaica is set to become the most popular hotspot for digital nomads in 2025, with a 250% increase in demand for remote work.

And who can blame them? After all, Jamaica’s beautiful beaches and warm weather make it a paradise for digital nomads looking to combine work with relaxation. The island offers plenty of spots with reliable WiFi – from coworking spaces in the bustling city of Kingston to beachside cafes in Negril – letting you stay productive while soaking up the sun.

While Jamaica doesn’t offer its own digital nomad visa, there are several long-stay visas that may be suitable for remote workers.

For example, its “Stay at Home” visa allows travellers to stay in the country for up to 90 days. Its requirements include:

• A valid passport
• Proof of where you’ll be staying (e.g. confirmation of hotel reservation, or address of residence)
• Most recent bank statements from the last three months
• Job letter from your employer or proof of self employment
• Proof of Jamaican work permit letter or work permit exemption letter from the Ministry of Labour & Social Security

Find out more about Jamaica’s visa requirements here.

Ready to start your digital nomad lifestyle? Check out our guides here:

• Looking to become a digital nomad? Here’s what you’ll need
• The 8 best Spanish locations for digital nomads
• How you can work remotely from countries that don’t have a Digital Nomad visa

Business networking really comes to life in December. As the year draws to a close, the usual prosecco and sandwich spread buffet will be replaced by mince pies, mulled wine, and (if the stock images are anything to go by) lots of smiling people in Santa hats.

Between present shopping and holidays, it might feel hard for entrepreneurs to justify spending time at events. At the end of a difficult year like this one, though, they are a chance for founders to wind down and reflect on the achievements of the past 12 months, together.

Things do quiet down towards the end of the month but there are still plenty of networking events in December. Below, we’ve listed 47 get-togethers around the UK that are completely free to attend. Scroll down to find the ideal opportunity for your sector, speciality, and city.

The Labour government’s announcement around its Autumn budget has left many businesses feeling apprehensive about the foreseeable future. 

With concerns around hiring freezes, raising prices for customers and lowering pension contributions, businesses are left to wrestle between survival and maintaining their workforce and customer base. 

What’s more, the risk of workplace redundancies is also looming. Given the number of mass layoffs in 2024 alone, uncertainties over job security are likely to continue following the budget’s impact on businesses.

But while many may point to the government’s latest taxation rises, other factors are also forcing businesses to plan redundancies in the coming year. 

The sting of NIC and NMW increases

Let’s first address the elephant in the room, which is the rise in National Insurance contributions (NICs) for employers, as well as the increase in the National Minimum Wage (NMW).

Businesses have been quick to dispute the government’s decision to raise these taxes for the 2025 financial year – particularly hospitality and retail businesses that expressed concerns over raising prices, job losses and even business closures.

While NI rates will remain the same for employees – thanks to Labour’s “working people” pledge – staff aren’t completely out of the woods, as increased taxes for employers are likely to result in more workplace layoffs in the new year.

According to research by Evelyn Partners, 26% of businesses plan to carry out a wave of redundancies in 2025.

Claire Burden, Head of the Advisory Consulting team at Evely Partners, said: “It’s deeply worrying that so many business owners are expecting to need to make redundancies over the year ahead. Cash reserves for many businesses are under pressure in the current environment and we can therefore expect to see some default on their debts.”

Consumers are becoming more budget-conscious

The cost of living crisis is also playing a part in next year’s expected redundancies, with 31% of businesses citing this as the primary reason for carrying them out.

Burden commented that business owners have been “feeling the heat” even before the Autumn budget was announced and that the impact of rising inflation in recent years is “still hitting businesses hard”.

“Many industries have not been able to pass on the full extent of their cost increases and this has left some firms fighting for their survival,” she said. “Business owners face a perfect storm as the lingering cost of living crisis has prompted consumers to tighten their spending.”

Research by Barclays revealed that 70% of UK consumers are looking for ways to get more value from their weekly shopping or to reduce how much they spend. Shoppers in the UK were also reported to be the most budget-conscious in Europe, with 40% of Brits citing price as the most important deciding factor when making a purchase.

Competition is tough

One of the biggest challenges of starting a business is how you can stand out from the others. 

But lately, tough competition has been a significant setback for many small businesses and small-medium enterprises (SMEs) – so much so that 23% of businesses cite increased competition as a negative impact, which could ultimately lead to redundancies. Moreover, 44% of small businesses reported that they were struggling due to competition from larger organisations. 

The challenge doesn’t just come from attracting customers either. A study by XpertHR revealed that the same percentage of businesses are struggling to match competitor pay and benefits packages, in turn losing out on the best talent to other organisations.

Poor quality applicants and skills shortages were reported as the primary issues HR professionals have faced in the recruitment process. A small business is more likely to struggle if it isn’t able to hire good-quality candidates, and as a result, these struggles could lead to layoffs in the long run.

What else could cause workplace layoffs?

The points above are only part of the ongoing issues that could lead to redundancies. Other negative factors businesses have reported include:

London’s longest-running meat market is set to close permanently after 2028.

Smithfield Market, located near St Paul’s Cathedral, has been trading for over 800 years. However, the City of London Corporation announced on Tuesday that the council voted to cease operations. Billingsgate Fish Market will also meet the same fate.

Both markets were set to relocate to a £1 billion development in Dagenham. However, the significant rise in construction costs and wider inflation has forced a reconsideration of those plans.

Now, with Smithfield and Billingsgate set to close for this, could this be the final nail in the coffin for the UK’s already struggling markets?

What is Smithfield Market?

Smithfield Market is the UK’s largest wholesale meat market. Historically, Smithfield was a site for livestock trading as early as the 10th century, later evolving into a wholesale market in the 1860s to meet London’s growing demand for meat, poultry and other related products.

Smithfield has played a central role in London’s food supply chain for centuries, providing produce to restaurant businesses, shops and households across the city. Aside from food trading, Smithfield was often used for public executions between the 14th and 17th centuries and was also where the annual Bartholomew fair was held each summer.

On the other hand, Billingsgate Market is the UK’s largest wholesale fish market, located near the River Thames. Similar to Smithfield, Billingsgate was officially established in the 19th century and has evolved from a small fish market to a major hub for fish and seafood trading – serving as the primary supplier for London’s restaurants, fishmongers and other retail businesses.

Why are Smithfield and Billingsgate closing?

Smithfield and Billingsgate’s closure primarily comes down to its original relocation plans falling through. London City Corporation said it was “actively supporting traders to identify suitable new sites” and that operations in both markets could continue operations until at least 2028.

“The decision reflects a careful balance between respecting the history of Smithfield and Billingsgate Markets and managing resources for this project responsibly,” London City Corporation said. “Project costs have risen due to a number of external factors, including inflation and the increasing cost of construction which have made the move unaffordable.”

Smithfield’s site is reportedly going to be converted into a “new and cultural commercial hub”, including the London Museum, while Billingsgate is set to be used for new housing developments.

However, Smithfield and Billingsgate’s loyal customers have expressed their disappointment and frustration with this decision.

“Why do buildings like provincial garages get saved by the British planning system while historic sites of actual communal and aesthetic value like Londo’s Smithfield Market continue to get shafted?” a user on X (formerly Twitter) wrote.

“Guarantee whatever follows will be full of the same generic chains every other new redevelopment has,” another user wrote on Reddit.

Are other UK markets under threat?

While the demise of Smithfield and Billingsgate will be a significant loss for many, traditional markets in the UK have been struggling for some time now.

In September 2024, the popular Church Street Market in Manchester City announced its closure after 50 years of trading. Around the same time, Nottingham City Council confirmed its plans to close its indoor Victoria Centre market due to a lack of occupation and rising costs of operations.

But while others are still standing, the once-bustling atmosphere of eager shoppers and busy market stalls has weathered away into near-empty spaces and abandoned stands.

This has been the case for the Bulwell Market in Nottingham. Kevin Fitzpatrick, who runs the market, cited the cost of living crisis, the impact of the COVID-19 pandemic and how markets are represented in the media as the key factors contributing to its decline.

“All these years ago a tenner would have been a day’s wages, but £100 now won’t cover wages,” he said. “Over the years, on TV and the media, they put us down and used to say all we sold were counterfeit goods. There used to be a few decent days here before Covid, but there is no future for markets now.”

According to research by The National Association of British Markets (NABMA), market stall occupancy has declined to an average of 72%, down from 77% in 2018. It also reported that few markets regularly monitor footfall, so it’s difficult to properly measure their performance.

Meanwhile, other market owners have said that they’ve not received sufficient support from their local governments, such as an opinion article by The Yorkshire Post, which said the value of outdoor markets isn’t recognised by the “majority of elected officials”. Levenshulme Market in Manchester also faced issues with its own local authority, having closed in 2023 due to a series of challenges imposed by Manchester City Council, including the council wanting to take a 20% cut from its annual profits. While directors aimed to reopen in 2024, Levenshulme Market has remained closed since, and there’s no sign of it coming back any time soon.

The closure of the Smithfield and Billingsgate Markets marks the end of an era for London. As these iconic markets near their end, it raises concerns about the loss of local culture, community connections and historic charms that markets have offered for centuries. 

Interested in setting up your own market stall? Check our guide below:

• How to start a market stall

Following bubbling optimism at the start of this summer, excitement over the change in government for UK business owners appears to have gone flat. 

Last week, an online petition calling for a general election went viral. The petition, started by pub landlord Micheal Westwood, has amassed over 2.6 million signatures in just six days, causing ‘petition for general election’ to trend on Google Search and prompting Sir Keir Starmer to rule out another vote.

Hospitality firms are reeling from the recent Autumn Budget, which gave little cause for confidence from entrepreneurs. Speaking to the MailOnline, the man behind the petition has explained why he is already calling for the “negative” Labour government to be replaced.

“Labour negativity annoyed me”

Alongside running a beer distribution company, Westwood is the leaseholder of three pubs in the West Midlands. He has gained notoriety in the past for pulling the UK’s ‘cheapest pints’ at his pub, The Waggon and Horses, where all beers, ciders and ales cost £2.90 or less.

Speaking to MailOnline, Westwood revealed he started the petition last Wednesday after growing fed up with the current prime minister. Despite having been in office for just four months, Westwood said he felt put off by the party “being so negative all the time”.

“They were putting the fear of God into people that everything was so bad”, he said. “They had also gone back on their manifesto promises. I was just frustrated at what I was seeing and hearing it all the time and it really annoyed me.”

Bitter Budget to swallow

Westwood has said that he voted Conservative at the last general election. His concerns could be dismissed as ‘sore loserism’. That’s the tact Starmer has gone for anyway. 

Asked about the petition on ITV’s This Morning programme on Monday, Sir Keir said, “Look, I remind myself that very many people didn’t vote Labour at the last election. I am not surprised many of them want a re-run.”

However, Westwood’s concerns also reflect the cool reaction from businesses towards last month’s Autumn Statement. Despite calls for measures that boost confidence, the announcement made for grim reading, with a number of tax hikes unveiled, plus the controversial decision to increase National Insurance contributions (NICs) from employers.

In an open letter published at the start of this month, hospitality industry leaders warned of job losses and closures as companies grapple with their new tax bills. Pubs, bars, and restaurants have already been struggling with staff shortages and a growing pay crisis.

“It is just going to make it harder for small businesses and there will come a time when many just say ‘I’ve had enough’ and call it a day,” said Westwood.

New Labour optimism?

The prime minister has been quick to dismiss Westwood as a bad sport. But the SME vote was key to Labour winning the general election, and while the party promised to “pull up the shutters” for firms, it has been slow to action manifesto pledges such as business rate reform.

Pre-Budget, Startups surveyed 531 SMEs about their thoughts on the new government. Some 36% of UK businesses said the Labour party was most supportive of small firms.

This was ahead of the Conservative party, which won 20% of the vote, and the third most popular answer: “None of the Above,” which 12% of businesses chose. Positive for Starmer, but if that was a shareholder vote, he’d be far from out of the woods.

Westwood might be wishing that the Blues had won in July, but the rest of the small business population could soon be hoping for a secret third option: a Labour government that can deliver a vision that will propel SMEs forward, not one that simply maintains the status quo.

Female founders in the UK have been given a major boost in the form of a new, £250m investment pool that aims to close the gender funding gap.

The government-backed Invest in Women Taskforce announced the new funding on Monday. The Taskforce was created in March this year, with a mission to be one of the world’s largest grant providers for businesses with at least one female founder. 

Named the ‘Women Backing Women’ fund, large banks and investors including Barclays and Aviva have committed to financing the organisation. However, the Taskforce has stated that the money will be deployed specifically by female “investment decision-makers”. 

In September, Innovate UK — part of UK Research and Innovation — caused fury after it delivered just half of the 50 grants it had previously promised for women business owners. 

“Female entrepreneurs sidelined for too long”

In all, Barclays, M&G, the British Business Bank, Morgan Stanley, Visa Foundation, BGF and Aviva have committed to invest in female founded businesses either directly or via the Women Backing Women fund organised by the Taskforce.

With £250m pledged for the pot so far, the fund represents one of the largest globally that’s specifically designed for women founders. Women entrepreneurs looking for funding are now being encouraged to find out what opportunities are available via the Taskforce website.

Debbie Wosskow, Co-Chair of the Invest in Women Taskforce, said: “Female entrepreneurs and investors have been sidelined for too long – they are two sides of the same coin. It’s time we rebooted the system and gave female investors the power to drive change.”

Reeves: “I want to improve life for women across the UK”

Despite more women starting businesses, the amount of funding awarded to women founders remains significantly lower than men. Startups data has shown that male-founded startups secure nearly six times more funding, on average, than female counterparts.

The gender funding gap is also worsening, even in female-dominated sectors like femtech. In the first half of 2024, data from the Taskforce revealed that all-female founded businesses received just 1.8% of the total value of equity investment. This is down from 2.5% in 2023. 

The Invest in Women Taskforce is the successor to the Rose Review, an independent review of female entrepreneurship. The review has estimated that a £250bn boost could be added to the UK economy if women were able to scale their businesses at the same rate as men. 

This is one reason why support for women in business has become a priority for Chancellor Rachel Reeves, herself the first woman Chancellor in the role’s more than 800-year history. 

Commenting on the government backing of the Taskforce in September, Reeves said: “It is a huge responsibility to sit in the Treasury as the first female Chancellor of the Exchequer and be able to use my position to improve life for women across the UK.

“By backing the [Taskforce] we can establish one of the world’s largest dedicated investment funding pools for female-powered businesses, helping grow our economy.”

Innovate UK row

To support the rollout, the Invest in Women Taskforce is now calling for fund managers to help manage the Women Backing Women fund.

However, the money will apparently be allocated by female decision-makers. According to a press release, this is in recognition that “female investors are twice as likely to invest in female-led and mixed businesses”.

In September, Innovate UK – which is a non-departmental public body – caused controversy after it emerged it had awarded just half of the 50 grants in its ‘Women In Innovation’ funding competition for women entrepreneurs.

The organisation said it had “up to £4m” in funding available to give to the winning entrants. But despite receiving thousands of entries, only £2m was awarded. The organisation was forced to U-turn following a vocal campaign led by female founders on LinkedIn.

At the time, male CEO Indro Mukerjee, who has now left the organisation, said “more must be done”. The government may now be hoping that the new female-led Taskforce can rectify what one founder decried as “man made virtue signalling” by Innovate UK. 

Many of us in the private sector are looking forward to a lengthy Christmas break. But while some workers are crawling to the finish line with just one or two days of holiday leave remaining, the majority may struggle to take significant time off, despite their best intentions.

According to a new survey by Timetastic, over half of UK workers didn’t use up all their annual leave in 2023. They estimate that, this year, around 20 million working people chose to stay at their desks during the summer holidays, rather than book a week in the sun.

Whether or not a worker takes their annual leave is, ostensibly, their decision. But employers should be mindful of the potential impact it can have on staff wellbeing and future leave entitlements — and the outside factors that might be contributing to this holiday hesitancy.

Bah, holidays

In total, 61% of the 1,500 employees surveyed by Timetastic reported they had annual leave that had gone unused during the previous 12 month period.

Most bosses (unless they’ve adopted the leadership style of David Brent) recognise that staff who don’t use up their annual leave allowance don’t always do it out of love for the job. 

Instead, the more common culprit is a combination of internal pressures to succeed and external demands to keep up, resulting in a perfect storm of burnout and overwork.

Timetastic also asked employees why they felt unable to use their annual leave. Concerningly, 9% of men and 6% of women said they felt pressure from management to not take a break. Among those aged 25-34, 17% said they felt this way.

Right to disconnect

That employees are struggling to switch off will not be news to HR leaders. Remote work policies have led to an ‘always-on’ culture at many UK offices. The issue is so widespread that 54% of employees now expect to work while on annual leave.

Without proper rest breaks and rules about contacting staff out of hours, workers are more likely to suffer from burnout and decreased productivity. This can in turn create a toxic work environment where staff feel pressured to work excessive hours and neglect their wellbeing. 

Other countries have already introduced laws designed to give employees the right to disconnect outside of work hours. Labour had promised to do similar in its pending Employment Rights Bill. However, the plans were left out of the draft legislation in October.

Oliver Higenbottam, Managing Director of Timetastic said: “Taking a break isn’t just a “nice to have”—it’s crucial for health, well-being, and overall productivity. 

“Workplaces must actively encourage it and make the effort to ensure their employees feel like they can take a well-deserved break.”

How to encourage staff to use their leave this December

Ahead of the Christmas break, employers should encourage their staff to book in their annual leave by sending clear messaging that conveys the benefits that holidays offer.

This is particularly important if your workplace has a ‘use it or lose it’ policy, as employees may not be aware that they have a confined time period in which to use their allotted leave.

There is also a legal precedent to promote annual leave use. While they can dictate when staff take their holiday if necessary, UK laws surrounding holidays state that bosses should “actively encourage” workers to use their allowance when they can.

To do so is also beneficial for business. Some firms allow team members to ‘cash-in’ their holiday allowance by selling it back to the company, or carry their days off into the next year. 

Having to pay out for lost annual leave days this winter could negatively impact cash flow. Similarly, say your employees each take an extra 10 days of holiday into the new year. This could lead to an increase in absences and potentially disrupt productivity and planning.

Happily for bosses, the best method to encourage annual leave use is to lead by example. CEOs can spread holiday cheer by introducing clear guidelines and open discussions about leave, supported by a leadership team that regularly takes time off themselves.

In an era where it’s becoming increasingly harder to switch off from work, employers must prioritise employee wellbeing this December. ‘Tis the season to relax and recharge in 2024.

Whether you love it or hate it, artificial intelligence (AI) is everywhere, and it’s here to stay.

While it isn’t a new concept, the hype around AI truly began to soar in 2023, when advancements in generative AI, particularly models like OpenAI’s ChatGPT-4, started making waves in content creation, answering questions and automating complex tasks.

Businesses quickly caught on to its popularity, with 39% of UK organisations adopting AI technologies in 2023 – a breakout year that saw it move from a niche tool to a mainstream business solution.

But despite the buzz around AI, it hasn’t worked out for everyone.

Research has revealed that over a third of UK businesses that have tried implementing AI solutions in the last 12 months have seen these projects fail. But, why has that been the case?

AI for business – expectations vs reality

AI became democratised in 2023. It wasn’t just for tech experts anymore – it was something anyone could pick up and use.

But it wasn’t all about answering quick questions, creating funky filters, generating wacky images or writing on-the-spot poems. Businesses were also able to make use of its capabilities, particularly to automate repetitive tasks, improve customer service and streamline operations.

Many organisations were optimistic about AI’s impressive functionality, particularly as 2024 began. A survey conducted by Startups revealed that businesses that were preparing themselves for AI disruption felt better positioned for the new year, with 14% of respondents believing that investing in AI should be their priority in 2024. Companies within the Technology, Fintech and Healthcare sectors were also reported as the top industries for AI adoption. 

Yet despite the optimism, implementing AI has proven to be harder than expected. According to research by OneAdvanced, 52% of UK businesses have attempted to integrate AI into their everyday operations, but 36% of leaders reported that those efforts have failed.

While the IT industry saw the best success, with just a 16% failure rate, other sectors have struggled more. This includes 30% of GP practices and 29% of finance businesses that reported problems in the survey.

AI-specific skills are lacking

So, why have so many businesses struggled to implement AI successfully?

OneAdvanced’s research suggests that a lack of AI-specific skills and experience is to blame. It found that while 85% of business leaders acknowledged the benefits of AI solutions, just 28% believed that their workforce had sufficient skills to enable the use of AI effectively.

Simon Walsh, CEO of OneAdvanced, cited the UK’s employee engagement crisis and leaders failing to skill up their workforce as the primary reason for this issue.

“Productivity in the UK is at an all-time low, with leaders’ inability to skill up and embrace AI, risking them lagging behind their global counterparts,” he said. “Businesses are being held back by a lack of expertise, which often leads to a gold rush for certain skills to be hired or third parties to supplement the gaps.

“Collectively, we simply cannot afford to wait for the right people to become available, or the country risks losing significant ground against the global competition.”

Moreover, while AI roles were reported to be the highest-paid in the tech industry, more than two-thirds (68%) of business leaders said that they’ve struggled to attract the right talent to manage their AI tools effectively.

Businesses were quick to jump on the AI “trend”

Given AI’s surge in popularity over the past year, it’s no surprise that a lot of businesses have jumped on the bandwagon.

The problem is that AI projects can fail because of a lack of clear business objectives, and as a result, may fail to deliver any measurable value or align with the company’s strategic goals. This has been the case for up to 80% of AI projects in 2023, as they weren’t able to achieve their full potential or meet business goals.

However, this isn’t always down to the decisions of founders or business owners. Rather, it can come from pressure to adopt emerging technologies to stay competitive, meet customer expectations or keep up with industry trends – even when the business might not be fully ready for it.

Research conducted this month from Startups found that 82% of UK small businesses are experiencing pressure to adopt technologies like AI. But despite this push, rushing into AI adoption without proper preparation can lead to wasted resources, unmet expectations and even financial losses.

Poor data quality is a major obstacle

AI systems rely heavily on data. But, poor quality, unstructured or inaccessible data can lead to substandard models. As a result, this can lead to unreliable predictions or insights, making the system untrustworthy.

According to a study reported by Digitalisation World, 60% of organisations say that AI is a key influence on data programmes. However, just 12% reported that their data is sufficient and accessible enough for effective implementation. The lack of good-quality data itself was also reported to be a challenge for 64% of organisations, in turn holding them back from being able to fully utilise AI’s potential for decision-making, automation and strategic insights.

Josh Rogers, CEO at Precisely, commented: “To fully capitalise on the business benefits of analytics and AI, organisations need to invest in data integrity. Establishing a foundation of accurate, consistent, and contextual data can serve to help them make informed decisions with confidence and truly realise the value of their AI initiatives.”

Can AI work for your business?

Despite the large number of failed AI projects, 88% of UK businesses are prioritising preparing for AI adoption for 2025. Our own research has also found that 50% of businesses cited improving efficiency and productivity as the most influential factor in their technology adoption decisions.

If you’re looking to implement AI technology into your own business, here are a few strategies that can help:

• Define clear objectives: Identify specific problems you want AI to solve, such as personalising digital marketing efforts. Use SMART goals that align with your business strategy and avoid implementing AI for the sake of following trends without understanding how it will add value. 

• Invest in high-quality data: AI relies on good data, so you must ensure it is accurate, well-structured and accessible. This may involve investing in data cleaning, integration and governance to build a solid foundation for AI models. 

• Upskill your workforce: AI shouldn’t be handled by just anyone. That’s why you should equip your team with the necessary skills through training and development. Alternatively, consider partnering with experts or hiring AI-skilled employees to bridge any knowledge gaps. 

• Start small and scale gradually: It’s important that you don’t jump into AI adoption straight away. Instead, begin with smaller pilot projects to test its effectiveness in specific areas, such as an AI chatbot or virtual assistants to handle common customer inquiries. Use these as a starting point before rolling out more initiatives across your business. 

• Focus on human oversight: While AI is useful, you shouldn’t over-rely on it. After all, it’s not designed to completely replace human expertise. Make sure to implement checkers and keep the right people in the loop for critical decisions to ensure accountability and ethical considerations. AI models need constant monitoring to remain effective as well, so make sure to regularly review their performance and update their data to adapt to your business needs and market conditions.

The festive shopping season might be round the corner, but the UK high street is in a sorry state to greet it. With lots of popular chains having fallen into administration, many shops and offices lay empty, blighting the local landscape and worsening already low footfall. 

That could be about to change. From next Monday, local councils will be awarded the ‘right to rent’ under new laws that will allow them to rent out long-term empty commercial properties without first needing to obtain permission from the owner or landlord.

The scheme forms part of a package of levelling up reforms that the government is hoping will serve to revitalise local high streets and kickstart the UK’s economic recovery.

What is the ‘right to rent’?

Known as High Street Rental Auctions (HSRAs), the new rental scheme was first announced by the previous Conservative government back in May. With the plans being upheld by the new Labour government, the new powers will be granted on 2 December.

All commercial properties which are located on a designated high street and have been empty for over a year will be eligible for takeover. That includes:

• Shops
• Offices
• Restaurants
• Bars
• Community halls

Under the new laws, local authorities will be able to step in and auction off a new rental lease for the above premises between one and five years. 

According to the government, the move will stop “disengaged” landlords from sitting on empty properties for more than 365 days in a 24-month period.

Confirming the news in November, business secretary Jonathan Reynolds said: “We promised to lift the shutters on our great British high streets and we’re delivering real action across the board, to boost jobs, opportunities and get the economy growing.”

One in seven shops now empty

One provision outlined in the new laws is that the property’s occupation will be “beneficial to the local economy”. According to analysis by the Local Data Company, one in seven shops on UK high streets currently sits empty, representing wasted space for towns.

High street businesses are facing significant challenges due to shifts in consumer behaviour, economic pressures, and changing business models (not helped by dreary UK weather). 

The rising cost of living is a major cause, but not the only one. Limited disposable income has undoubtedly reduced consumer spending, but consumers are also now prioritising experiences over goods, seeking out places that offer social activities alongside shopping.

The problem is self-perpetuating. As more shop windows are replaced by shutters, Brits are even more deterred from transactional retail. The reduced foot traffic has hit profit margins, resulting in 2,300 stores closing in the first half of this year alone.

Labour had pledged to tackle the problems by reforming business rates (taxes charged on commercial properties) for SMEs. Last week, it published draft legislation that hinted it will aim to completely cut business rates for retail hospitality and leisure properties from 2026.

High (street) hopes

Until that occasion, the burden of high business rates, particularly for small and independent retailers, remains a significant challenge both for business owners and local councils. 

As an interim solution, HSRAs could offer the opportunity for entrepreneurs to occupy space on the high street at a competitive rate. New or growing businesses could base themselves in cheaper, local offices or shops instead of throwing their money at expensive city locations.

Commuter towns also represent a larger chunk of the market now that more employees are working from home rather than city centres. That’s the reason that Esquires Coffee, a fast-growing chain in the UK, this week outlined plans to target out-of-town suburban sites.

Aiden Keegan, chief executive of Esquires in the UK, said: “We don’t particularly want to be in central business districts or city centres. We’re happier in the suburbs where people working from home want to visit a cafe to work”.

Going once…

It is unclear how many councils plan to take advantage of the HSRA scheme. Statistics suggest that they will have plenty of vacant properties to choose from. Founders and residents will be hoping their local authority places its bids wisely come December 2.

Commenting on the start of the scheme, Local Growth Minister Alex Norris said: “High streets are the beating heart of our communities. But for too long, too many have been neglected, with more and more empty lots and boarded up shopfronts.”

“We are giving local councils the tools to take back control. HRSAs will put local communities first, re-energising town centres and driving local opportunities and growth.”

CEO salaries are increasingly outpacing median wage growth in the UK. In 2023, the average FTSE CEO in 2024 took home the average UK worker’s salary in just three days.

Now, a poll by the High Pay Centre has found that 55% of employees agree that chief executive salaries should be capped relative to low or middle earners, in order to close the widening pay gap between UK boards and employees. Only 15% objected to the idea.

The thinktank is now calling for UK bosses to be more transparent about pay amid concerns that income inequality is souring relationships between shop floor workers and executives.

How much more do CEOs earn?

In 2023, FTSE 100 CEO pay reached £4.19m, the highest level on record, and up from £4.1m in 2022. That means bosses at the UK’s most successful companies now earn around 120 times more than the median full-time worker.

As well as demanding a cap on CEO pay, the High Pay poll also found that the majority of respondents supported more transparency for all boardroom members. 70% of employees surveyed agreed that companies should publish information on staff making over £150,000. 

Analysis by Startups has found that five of the six top roles in FTSE 100 (such as CMOs, CPOs, and CFOs) earn C-Suite salaries over this amount per year, on average.

Most people in board roles do not work at FTSE 100 firms, and a pay cap would be unlikely to affect the majority of bosses. Office for National Statistics (ONS) data shows the average salary for a UK CEO is £97,083 per year, or three times more than the median worker.

Startup salaries are even lower. Data from the funding organisation SeedLegals has shown that founders only tend to start taking a salary when they’re raising £150,000 or more, at which point they will award themselves average annual earnings of £37,000. 

Christmas bonus

The High Pay survey comes weeks before the top earning CEOs are likely to see another big boost to their income slips, as the season for Christmas bonuses nears.

Rather than taking a salary, many employers pay themselves through alternate methods that are tied to the success of the company, such as dividends or bonus schemes. These are commonly rolled out at the end of the financial year or ahead of the holiday season.

Bonuses are still taxed and are also often awarded to the wider workforce. Despite falling profits at the bakery chain Greggs, CEO Roisin Currie this week refused to slash the bonus distributed to employees (currently 10% of profits) describing it as “absolutely sacred”.

However, bonus pay for those on the highest salary band at certain large corporations can be substantial, adding a zero to the end of some employees’ pay cheques.

Last December, Sainsbury’s food commercial director Rhian Bartlett was called out by MPs after they discovered that the CEO’s bonus of £4m had been 200 times workers pay.

What should the CEO pay cap be?

The High Pay Centre has not yet defined a fair pay ratio for CEOs and frontline workers. According to the Guardian, it will publish its “A Charter for Fair Pay” in full this week ahead of the government’s package of worker reforms dubbed the Employment Rights Bill.

Some forward-looking employers have already provided a baseline. John Lewis has previously capped the pay gap between chairs and staff at 75:1.

Yet this is still substantially higher than most experts recommend. Renowned management consultant, Peter F. Drucker has said that 20:1 is the ideal limit for managers “if they don’t want resentment and falling morale to hit their companies.”

Why should CEO pay be capped?

Large pay gaps between CEOs and staff can create feelings of resentment and unfairness. As evidence, look no further than the second richest-man in the world, Jeff Bezos. 

In the same week as the High Pay survey, thousands of Amazon workers have announced strike action during the site’s busiest shopping season, Black Friday weekend.

Coordinated by the Make Amazon Pay campaign, the action aims to force Amazon to pay staff fairly. Amanda Gearing, senior organiser at the UK-based GMB Union, said UK Amazon “represents everything that is broken about our economy.”

Capping CEO pay could potentially improve staff relationships by reducing income inequality, boosting morale, and fostering a stronger company culture. 

Most of us enjoy losing ourselves in a gripping documentary. But while true crime might be dominating living rooms right now, there’s a swathe of business films and series out there that hold valuable lessons for boardrooms too.

“Documentaries about business” might sound a little dry – trust us – there’s some riveting ones out there, even if the subject matter isn’t strictly ‘all business’.

We’ve put together a list of the best docs to watch to boost your business acumen along with examples of how to get started, and how not to start (we all secretly love the schadenfreude of watching a disaster, don’t we?).

With more UK companies rolling out return to office (RTO) mandates, many have claimed that these policies have been implemented to boost workplace productivity and employee engagement. 

However, a recent study revealed that nearly half of UK organisations only enforce RTO policies for appearance, rather than purpose – reinforcing a culture of presenteeism, where merely showing up at the office seems to matter more than getting work done.

Bosses admit that RTO policies are just for show

According to research by Indeed, an astonishing 44% of bosses say that being in the office is more about appearance, rather than purpose. The majority of employees are in agreement, with 46% saying their employer treats its RTO policy as a “cure-all to its problems”.

Yet despite this revelation and the amount of backlash, 57% of businesses still plan to get their staff back in the office full-time in less than two years.  

What’s more, 56% of leaders acknowledge that they favour employees who come into the office more often, which can relate to the widespread belief among bosses that physical presence is a key factor in an employee’s chances of getting promoted.

Employees say leadership needs to be on board with flexible working

As part of the Labour government’s employment rights reform, employees will have the right to request flexible working from their first day of employment, under its new Flexible Working Bill.

But despite these promises, most employees don’t believe these will be realised unless leadership is on board as well. While 61% of workers believe the government should strengthen the right to work remotely, half say that government policy wouldn’t change their employers’ attitude to being in the office.

Bosses themselves acknowledge their influence on office attendance as well, with two-thirds (66%) saying that their own presence encourages employees to come in more often, regardless of a company’s official policy.

Most employees aren’t confident about the right to switch off

The right to switch off is also part of Labour’s employment reform pledge – preventing employers from contacting staff outside of working hours, unless under exceptional circumstances. However, most workers aren’t confident that this will be properly enforced, as 49% say they’d still work after hours, even if it became part of the UK’s employment law.

The same percentage of workers say that responding to work-related calls and messages is the norm in their company’s organisational culture. Senior leaders feel the pressure too, with 44% feeling obligated to stay online or still be in the office after hours, even when they’ve completed their work.

All in all, the push for RTO policies seems to be driven more by outdated notions of presenteeism than by genuine efforts to improve productivity and employee engagement – something that is only going to add to The Great Detachment in the UK right now.

While many bosses still value physical presence, employees are pushing for more flexibility, especially as new rights to request flexible working are introduced. Until leadership aligns with these expectations, the gap between policy and practice may continue to strain employee morale and hold back workplace progress.

Starling Bank has become the latest company to enforce return to office (RTO) mandates for its employees.

Raman Bhatia took over as chief executive of the neobank in March 2024, following the resignation of its founder, Anne Boden. Now, Bhatia has ordered all hybrid staff to travel to work for a minimum of 10 days a month.

However, staff were quick to oppose this “rushed” announcement, and some have already resigned as a result. Complaints included the lack of desk and parking spaces and disruption to flexibility and work-life balance.

Bhatia’s new leadership of Starling has been a rocky one, to say the least. Having been fined £29 million by the Financial Conduct Authority (FCA) in September 2024 for deficiencies in its financial crime control, this new policy has only added to its sullied reputation.

Starling offices don’t have the space to accommodate everyone

One significant problem with Starling’s new RTO policy is its lack of office space – something which the company itself has acknowledged.

Starling has around 3,231 staff, most of which are based in the UK. However, the neobank reportedly only has 900 desks altogether, including 260 in its Cardiff office, 320 in its London headquarters and 155 in Southampton. It also has 160 desks in its new Manchester office, which houses Santander and HSBC staff as well.

“We are aware that in some office locations, we may not be able to accommodate 10 office working days per month for everyone right now,” Starling’s human resources team said in an email. “We are considering ways in which we can create more space.”

Starling’s culture described as a “grey corporate hellscape”

This latest revelation has caused staff to hit back at Starling’s organisational culture and how its new policy will damage employee engagement – further adding to the UK’s ongoing problem with detached workforces.

Staff have accused Bhatia of creating a “bland grey corporate hellscape filled with dead-eyed zombies who care about nothing more than doing the bare minimum, clocking off and collecting a paycheque”. 

Another aggravated staff member said on the company’s Slack that the policy has been “rammed down everyone’s throats despite their legitimate concerns.”

Bhatia has refuted these accusations, and said that he was “surprised” by the negative reaction to the news, claiming that he had discussed getting staff back in the office “over the last few months.”

Bhatia said: “The leadership team has been thinking for some time about how to operationalise this because we share a conviction that working in the office is important for creativity, collaboration, problem solving, performance and engagement.”

Will Starling punish flexible employees?

Starling is far from the first company to introduce RTO mandates this year. In the last few months, we’ve seen the likes of Dell, ASOS and Manchester United rolling out RTO policies, and threatening punishment to those that don’t comply.

Technology company Dell warned that hybrid and remote workers would be less likely to get a promotion. Meanwhile, Manchester United took a much harsher stance on the matter – simply telling its staff to return to the office or quit.

Starling hasn’t announced whether it will punish uncooperative employees. However, given the commotion among employees, staff rebelliousness is likely to escalate, potentially leading to an even wider divide between Starling’s leadership and its workforce. The possibility of penalties for those refusing to comply has only added to the tension, raising concerns of more resignations and declining morale across the company.

Starling seems to be missing the mark on workplace culture. Find out if any other heavy hitters are getting it right with our guides on:

• Amazon company values: the culture of an ecommerce colossus
• Apple’s company values: what startups can learn from its culture and principles
• “Don’t Be Evil”: Google’s company values in the spotlight
• Meta’s values, culture and mission: lessons from Zuckerberg’s tech giant
• OpenAI’s mission, culture and values – the ultimate disrupter?