This year, a long list of companies have introduced return to work (RTO) mandates. Some are so strict, they have resulted in many employees looking for work elsewhere. And according to one employer survey, that might have been the goal all along.

HR software biz BambooHR surveyed more than 1,500 US-based employees (33% of whom work in HR) for their views on current employment trends. One quarter of executives, and a fifth of HR professionals, admitted they hoped RTO mandates would result in staff leaving.

The findings indicate that some of today’s office-based employers are co-opting the return to work in order to practise ‘quiet firing’, where staff are pushed out of a role without knowing.

What is quiet firing?

Using RTO mandates to create an unattractive work environment for staff is an example of ‘quiet firing’. This employment trend has emerged as the foil to quiet quitting, a movement instigated by employees that sees workers do the bare minimum at work and no more.

Quiet firing is the company’s own silent protest against employee behaviour. In this case, their preference for remote work instead of attending the office.

When ‘quietly firing’ staff, management will purposefully create negative work conditions to make an employee quit. For example, by holding back on offering promotions to companies.

Dell Technologies made headlines earlier this year when the software company warned hybrid and remote workers they will be less likely to get a promotion.

Some companies are not hiding their true intentions. Manchester United boss, Sir Jim Ratcliffe, offered remote workers an early bonus last month if they resigned, after some expressed discontent with the company’s new work policy.

RTOs lead to lower engagement

Efforts to force staff out of the workforce using RTOs might not be as successful as some employers are hoping, however.

37% of respondents in leadership roles think their employer has made layoffs due to too few people quitting in protest of RTO policies, the BambooHR report found.

Instead of resulting in a wave of voluntary redundancies, return to office policies are more likely to result in reduced workforce engagement, as workers rebel against losing access to one of the most in-demand employee benefits.

Lloyds Bank recently discovered this when it rolled back its remote work policy. Lloyd’s 2023 employee index shows that the change caused satisfaction levels to fall by 12%.

Know your flexible working rights

In the global RTO debate, employers offer many arguments against home working. Some, such as Boots and WebMD, say it negatively impacts company culture. Others argue it makes teams less productive, which could be why they want remote staff members to quit.

Yet the BambooHR study suggests that some employers with RTO mandates in place are not testing this theory. 22% of HR professionals who responded to the survey admitted that, despite going the RTO route, they had no metrics in place to measure success.

They are also bucking the trend, not leading it. Startups research has found that flexible working is still on the rise in the UK.

In large part, this is due to the Flexible Working Bill, which made it a legal requirement for businesses to offer flexible work options (such as hybrid working, a four-day week, and job sharing) to staff from day one of their employment.

Employers who can move away from the office, and modernise their approach to work, could be best-placed to take advantage of the cultural and legal shift towards flexible working.

Orka

Manchester-based flexible working startup Orka first launched back in 2016. Its innovative products included Orka Pay, a tool for workers to access wages early, and Orka Works, a management platform for gig economy workers and employers to manage and plan shifts.

It should have been a monumental rise through the charts for Orka. The temping sector has become hugely popular post-COVID, as more companies lean on flexible and short-term workers to plug labour shortfalls.

Orka did manage to garner some impressive backers, including the Northern Powerhouse Investment Fund. It also earned a £29m mixture of debt financing from Sonovate and equity funding involving the British Business Bank Future Fund.

However, as the economy took a turn for the worse, Orka struggled to take on high-paying, large business clients. Like many tech firms, Orka also struggled to raise money, as investment dried up, and founder Tom Pickersgill called in the administrators in April 2024.

What can startups learn from Orka’s collapse?

You can have a brilliant idea, but you’ll need a stable financial foundation to make it work. Orka’s struggle to raise additional funds in a difficult economic climate highlights the importance of building a strong network and securing funding when possible.

Pickersgill told The Business Desk, “It’s been a tough 12 months. Orka was a fantastic business with plenty of potential. We did everything we possibly could, we made some really tough calls. But it’s hell out there at the moment trying to raise money for a tech business.”

Babylon Health

It was once a staple on tube adverts. Babylon Health, the London-based healthtech company, gained immediate popularity when it launched in 2013. Amid growing NHS waitlists, the chatbot offered instant access to GP services, and served over 115,000 Brits.

Babylon Health quickly launched in the US, and listed on the New York Stock Exchange (NYSE) in 2021, valued at over $4bn.

Patients might have been satisfied, but clinicians were less happy. Doctors reported issues with the ‘intelligent’ AI Babylon software that was causing them to miss symptoms during patient check-ins. Yet despite these concerns, Babylon partnered with three NHS trusts.

Eventually, the complaints became too loud, and regulator MHRA stepped in. Partner confidence wobbled, and Babylon began losing major contracts in the UK. It sought to acquire rival tech to boost its balance sheets, but the deals fell through.

In 2023, the company delisted from the NYSE and appointed administrators in the UK. Babylon’s assets were sold to eMed Healthcare UK for just $630,000.

What can startups learn from Babylon Health’s collapse?

Balancing innovation with regulation is difficult. It has thrown many startups, and Babylon is not the first AI healthtech to fall victim. Likely, with proper development, its tech could have worked. Plenty of startups are working on the mission of automating clinical assessments.

Don’t be afraid to move slowly and fix things. Where Babylon specifically went wrong is that it failed to stop, consider, and redesign when those first red flags came in from medical professionals, and a meteoric rise led to a suitably massive fall in revenue and user trust.

Twig

“Circular economy” fintech, Twig entered administration just four years after it launched back in 2020. The company managed to raise £32m in funding, but declared itself insolvent at the start of January, citing a challenging fundraising environment for its downfall.

Twig’s trade-in business model allowed customers to send in used gadgets and other high-ticket items to the company, in return for payment. Its innovative in-app payments account, where users could receive funds, allowed it to market itself as a fintech.

Founded by entrepreneur Geri Cupi, the brand also offered a carbon offsetting subscription service, and had also toyed with rolling out “web 3.0 infrastructure” for cryptocurrencies.

However, Twig’s worsening financial situation put a stop to the company’s growth plans. When it folded, Companies House filings show it owed £15.4 million to creditors.

What can startups learn from Twig’s collapse?

Twig is just one case study in an extraordinary funding crisis that has gripped the UK fintech sector. Despite previously being one of the most lucrative industries for investment, the money has dried up for fintechs, causing a 37% decline in funding in the first half of 2023.

Other fintech prodigies which have collapsed into administration in the past 12 months include SME banking company, Silverbird; business cash management app, Paysme; and opening banking player, Kikapay.

Twig’s collapse demonstrates the end of the previous, experimental era of financial services. Today’s investors want debt-free, steady-growth companies, which is why firms need to prioritise strong cash flow over product diversity and expansion efforts.

Thankfully, Cupi appears to have taken the setback well. The young entrepreneur has already launched a new circular economy fintech called Wingpay, months after Twig shut down. Let’s hope he has a better funding source lined up for this next venture.

Onto

It’s another EV startup. Electric-car subscription firm Onto entered administration at the end of last year, after failing to obtain a rescue deal from its lead investor, Legal & General.

Founded in 2017, Onto’s monthly all-inclusive subscriptions were designed to give consumers easy-access to expensive electric vehicles. According to Coverager, Onto has a 7,000-strong EV fleet, and has serviced around 20,000 customers since 2018.

Investors had pumped plenty of money into Onto’s engine. It raised $60m in a Series C round led by Legal & General in 2022, and planned to use the money to expand operations.

Onto’s USP became its downfall, however, when the residual value (the estimated value of a fixed asset at the end of its lease term) of EVs dropped substantially in 2023.

Since its borrowings were secured against its fleet, the company’s valuation fell while debt levels rose, and the owners were forced to call in administrators in September.

What can startups learn from Onto’s collapse?

Administrators offered a concise analysis for their reasoning of why Onto collapsed. “Onto suffered from the steep fall in electric vehicle residual value in the first half of 2023, rising interest rates and the squeeze on disposable income, and was unable to secure additional funding from its shareholders,” said Gavin Maher, joint administrator.

Hype does not necessarily translate into sales. While electric vehicles are almost certainly the future of the automotive industry, the cost of living crisis means that commercial interest for Onto unfortunately did not keep pace with its own appetite for R&D spending.

Until the market generates a viable level of consumer demand (and overcomes its supply issues), firms need to be realistic about when they will turn a profit.

Cervest

AI startups were on every investor’s lips last year. Research shows that AI firms received 66% more funding, on average, last year. Rumours of an investment bubble began to grow.

One of the high-profile startups to pop is Cervest, which entered administration in June 2023. The company, which uses AI to predict clients’ climate risk, was described by the government as one of the most “exciting” AI firms three months prior.

Cervest launched back in 2016. It raised $30m (£23.4m) in Series A funding in 2021, and featured prominently at London Tech Week last year, months after announcing partnerships with big-name companies such as Wickes.

However, despite assuring the Cervest workforce that it had enough money to stay afloat, a report by the Evening Standard found that the brand was struggling.

Directors attempted a sale of the business, but were unable to find a buyer. Administrators were appointed, and they managed to cover Cervest’s debts by selling its Intellectual Property to a rival brand. At this point, Cervest had not paid its employees for three months.

What can startups learn from Cervest’s collapse?

Cervest’s sudden downfall from government starkid, to insolvent, seems to be due to mismanagement at the top. Founder and CEO Iggy Bassi was firmly in denial that the company was burning through cash at an unsustainable rate.

The company went on a hiring spree in September 2022, certain that its financial situation would even out eventually. Even when he was unable to pay staff, Bassi told the Standard Cervest he had been confident more funding was imminent.

Failure is painful, but denying you are in trouble makes the situation far worse. Effective, and cautious, cash flow forecasting can help you to plan ahead for the next year to ascertain if your company really can survive the next 12 months, so your employees don’t end up reaping the consequences of the company’s mistakes.

Bink

Founded in 2015, Bink immediately won over investors with its revolutionary Payment Linked Loyalty (PLL) technology. This allowed customers to pair their debit cards with brands’ loyalty programs, ensuring they could access deals and organisations could easily reward regular purchasing. Two years later, it was valued at an impressive £100m.

In 2019, Bink received a hefty investment from Lloyds Bank, which bought a minority stake in the startup as part of a £10m funding round. But then, disaster. Despite extending its partnernships to include Barclays Bank, Bink lost £11.8m in the year to August 2022 according Companies House filings. At this point, the firm desperately needed money. Accumulated losses reportedly stood at £67.5m.

Bink then went onto raise an additional £9m in 2023, and it looked as though the startup might weather the storm of the fintech funding drought. Still, layoffs quickly followed, as Bink’s 85-strong person team in 2023 fell to 46 members of staff.

These cost-saving measures weren’t enough to keep Bink afloat, however, and the firm announced it had appointed liquidators on 29 May 2024. Speaking to FinTech Futures, the appointed advisory firm, FRP Advisory says Bink had “suffered significant losses for a number of years and recent efforts to secure additional funding had proved unsuccessful”.

What can startups learn from Bink’s collapse?

There is no doubting the innovation behind Bink’s product. Promising to offer savings and discounts to customers seemed like an easy win. In a kinder trading environment, Bink might have managed to find new funding and plug its debt.

Yet, the downfall for startup is a common one for tech businesses: education. Analysts reckon that the Bink product was too far out of reach for customers, who had to trawl through an app menu to find it. Even then, Bink’s USP made it difficult to understand how the software worked.

Particularly when you’re bringing a brand new product to market, new businesses need to invest in a significant marketing push to ensure their audience (in Bink’s case, UK cardholders), not just investors, will buy into the idea.

It’s not just the newbies which are struggling. Read our guide to the top high street brands that have gone into administration post-COVID.[/vc_column_text]

Labour has pledged to reform business rates if it wins the upcoming general election, as part of a number of support plans aimed at high street SMEs.

Business rates are a tax on non-domestic premises that companies must pay annually. The party has said the move will help to revitalise the UK’s struggling high street shops, restaurants, and cafes, by enabling brands to more closely compete with online rivals.

Business rates have long been a topic of contention for small firms. Back in March, SME owners expressed hope that the government would announce a reduction on rates. They were disappointed when chancellor, Jeremy Hunt, instead confirmed a tax hike of 6.7%.

Failing high street

Labour first unveiled its business rates reform pledge back in November, when it published a list of planned support measures for UK small firms. This included an intention to scrap business rates and “replace it with a system that is fairer for bricks and mortar businesses”.

At the moment, business rates are calculated using a building’s rent costs (also called the rateable value). However, rising inflation and mortgage rates have seen many landlords introduce hefty surges on rent charges, pushing up business rate charges for cash-strapped SMEs.

The bill increase has been compounded by financial challenges such as soaring energy bills and lower profit margins. This resulted in a net decrease of 5,000 stores in the UK last year.

What would business rate reform look like?

Labour‘s business rate intervention is a promising start for SMEs. However, few details have so far been given on what will replace the current system.

Over the weekend, shadow chancellor Rachel Reeves told the BBC that Labour “want to reform the business rate system in a way that reduces the costs for small businesses.”

This could include an overhaul of Small Business Rate Relief (SBRR). SBRR is a discount scheme which ensures a lower bill if a property’s rateable value is below £15,000. Last year, the Welsh government slashed the SBRR discount for hospitality firms from 75% to 40%.

Campaigners have previously called for the government to raise rateable values, in order to ensure more organisations can qualify for SBRR financial assistance.

Last November, Federation of Small Businesses (FSB) National Chair Martin McTague said: “Government needs to bring about a sea change when it comes to business rates. It’s long been known that the system is not fit for purpose and needs an urgent overhaul.”

Labour targets small business vote

Alongside business rates reform, the opposition party has announced a number of other plans aimed at winning over small business votes ahead of the general election on July 4.

These include tackling anti-social behaviour, answering a rise in the number of shoplifting offences, and unveiling new powers to take over empty shops.

Labour says it would also target late payments, and create “banking hubs” to ensure small business and customers are not left behind as the UK increasingly goes cashless.

While the Tories might traditionally be viewed as the party for businesses, their support among entrepreneurs appears to be waning.

In a survey conducted by Startups at the end of 2023, 58% of businesses told us they thought a change in government this year would be positive for their organisation.

“Now is the time for change and we, as a country, have been waiting long enough,” says Jenny Blyth, owner of Storm in a Teacup Gifts. “I will be voting Labour, not because I think they are the solution, but because we need to do something different right now.”[/vc_column_text]

Global coworking provider, WeWork has confirmed it has reached the end of its restructuring plan across its UK and Ireland office space portfolio.

The company, which filed for bankruptcy in the US last November, had been undergoing a “strategic reorganisation” to streamline its huge property portfolio. It closed WeWork sites across six UK cities including London, Manchester, and Birmingham.

Peter Greenspan, global head of real estate, WeWork has celebrated the end of the restructure as a “milestone” for the company.

But the company’s crash has lost it points with some members, and likely raised doubts among potential tenants. Should small business owners sign up for WeWork in 2024?

Which WeWork offices have closed?

After a meteoric rise as founding father of the coworking sector, WeWork began knocking at the door of insolvency last August, sunk by a series of financial losses and PR scandals. The bankruptcy announcement, and news of a restructuring, came three months later.

Post-restructure, WeWork UK is not without wounds. The brand has closed approximately ten sites including its flagship office in Manchester, and some central locations in the capital.

London-based operator IWG, which looks after two major commercial offices, Regus and Spaces, rushed to snap up some of the sites following the announcement.

WeWork’s struggles were not unique to the UK. Globally, the brand has shut the doors to around 160 offices, and revised more than 170 office leases in negotiations with landlords.

WeWork says the closures will reduce its rent expenses by an estimated £9.4 billion, in total. It also expects to finalise its restructuring in the US later this month.

Should I sign for a WeWork membership?

It’s natural for business owners to feel wary about signing for a WeWork office in 2024. After all, the restructuring has plunged members at affected sites into chaos during an already challenging year.

Overall, though, membership has remained loyal. WeWork reports its total footfall by occupied desks in the UK and Ireland rose by 25% in the year leading up to April 2024.

Thankfully, the brand also appears to have learned lessons from its overstretched portfolio.

Discussing WeWork’s growth prospects, Ben Samuels, WeWork’s Chief Revenue Officer, was cautiously optimistic. “We are going to do it all very responsibly this time,” he said.

WeWork remains one of the largest coworking providers in the UK. To entice new signups, it could also offer discounts that might make it a smart investment for new starters.

Still, businesses curious about taking out a WeWork membership will want to avoid making a long-term commitment until more details about its financial status are revealed.

The brand’s flexible All Access Membership plan is renewed monthly, and will give brands the best get-out clause should the worst happen. WeWork said that All Access bookings have increased by 34% in London, and 51% in Dublin year-on-year.

WeWork alternatives in the UK

If WeWork runs into money troubles again, members might not be the first to hear about it. Startups spoke to one business owner who was a member of WeWork’s now defunct Spinning Fields site in central Manchester.

He says there was little warning from WeWork ahead of the closure, and recalls seeing a sales rep show new members around the space just one week before the site shut down.

“When we finally found out [WeWork was closing], they offered us a space in another building,” he said. “We have a team of twelve and it could only fit four people.”

The company has since moved into an alternative coworking space in Manchester city centre. It’s a move that other small businesses will likely be considering as they weigh up the ease and convenience of large coworking providers, with the security of new independents.

In an open letter, property tech expert Thomas Procter recently declared that the flexible office space market had “matured beyond WeWork.”

In London alone, he argued, hundreds of cheap office space providers are proliferating. Operators are working closely with building owners, leading to management agreements over leases, satisfying landlords and avoiding one of WeWork’s biggest mistakes.

“The spaces themselves are [also] perfectly adapted to the evolved needs of the modern workforce – increased flexibility and scalability, improved community management and upgraded tech are just a few examples,” Procter added.

“Simply put, the flex sector is not WeWork – and it’s high time we stopped defining it by a non-representative single entity.”

Looking for low-cost coworking space in the capital? Learn more about the best free workspaces in London.

King Charles III was crowned last year, but his portrait has only just appeared on the first freshly-printed banknotes. And, despite the UK becoming an increasingly cashless society, the change is causing excitement among numismatists, or coin collectors.

It will take a few months for Charles to be seen in the public purse, as the first iteration of new notes will only be issued until next Wednesday. Notes that do appear in circulation could be a smart side hustle idea for those who want to double, or triple, their money.

Bank notes with early serial numbers may be worth a fortune to interested collectors. According to a report from Coventry Building Society, shared with This is Money, 15% of Brits who plan to apply for the new notes will sell them on eBay or at an auction for more money in the future.

How do I get the new King Charles banknotes?

The Bank of England has warned that those who want to get their hands on the new notes should act fast. You will only be able to do so from June 5 to June 30.

During this time, you’ll be able to exchange old banknotes up to the value of £300 for the new ones featuring the King by submitting an application form to the Bank of England office in Threadneedle Street, London (or, if you live nearby, you can visit the counter in person).

If you do get your hands on a £5, £10, or £20 note, make sure you read the serial number printed at the bottom of the polymer. This is because every banknote features its own unique serial number to identify and date it, numbered from 000001 to 999000.

The King has been given first access to the new wad, which means 000001 notes will not be available to collect. Still, coin enthusiasts have been known to bid money for early serial numbers, which is why the new notes could be worth much more than their face value.

Arnas Savickas is head of banknotes at Spink & Son. Speaking to This is Money, she said: “The lowest serial number of a £5 could fetch between £250 to £500, while £10 and £20 notes could go for £500 and £1,000 respectively. £50 could go for several thousand pounds.”

Do I need to exchange the Queen Elizabeth II banknotes?

Customers and businesses do not need to exchange their current plastic banknotes for the new King Charles III notes. The only design change on the new version is the monarch portrait, so if your notes still have Queen Elizabeth II on them, they will remain legal tender.

Things are different for the old paper banknotes, which have been out of circulation since 30 September 2022. On this day, the tender was replaced with more durable, polymer notes.

Customers can no longer use paper banknotes in shops and businesses cannot accept them as legal tender. If customers still have old banknotes, they should pay them into their bank account. The below banks will accept paper note deposits today:

• Barclays
• Halifax
• Lloyds
• Nationwide
• NatWest
• Santander

Is cash going to be phased out?

Cash is no longer the preferred method of payment for most UK customers, as more of us switch to online banking methods and contactless payments.

Mobile wallets, such as Apple Pay or Google Pay, have overtaken cash payments. There is a generational divide when it comes to paying – 30% of young people say mobile is their preferred way to make an in-store purchase (compared to just 5% of those aged over 55).

Despite this, it is unlikely that customers will say goodbye to cash any time soon. The Coventry Building Society survey found that 97% of Brits still use cash, with the tenner reportedly being the “best loved note of Britons”.

Among the benefits of cash cited by consumers is better security and ease of budgeting.

From credit cards, to gift cards, to Klarna, customers are now used to having a range of options available during checkout. Businesses should adopt a customer-centric approach to transactions that embraces both modern and traditional payment methods.

If Gen Z has a patient zero, I am it. I can’t write emails, I have bragged to colleagues about ‘discovering’ capri trousers, and I cannot pay attention to anything that lasts longer than seven seconds. Plus, I’m so narcissistic, I’ll use the word ‘I’ six times in one paragraph.

But perhaps my most Gen-Z trait is my aversion to alcohol. Like many in my sober-curious age bracket, I have taken the instruction of ‘go woke or go broke’ literally, and stopped buying pints during the weekly pub trip in order to save money. Pause here for applause.

Swapping liquor for lemonade has its rewards (a rest break for my liver, of course, being one of them). Sadly, though, these penny-pinching methods have given me a grand, teetoal profit of zero. The extra wad that I thought would materialise in my bank account hasn’t turned up.

To be honest, it’s not surprising, given the price of today’s soft drinks. Has anyone else noticed how expensive lime cordial has become? In the capital, we’re now routinely shelling out £4.60 for a glass of Diet Coke, just under the average cost of a UK pint.

It’s more grim up North. When they were finally allowed into the Co-op Live arena, just opened in Manchester, music fans were asked to hand over £4.80 for a pint of fizz.

Of course, spirits, wine, and beer prices are also rising. The alcohol duty increase, introduced last year, added 10% to production costs for independent breweries and wineries. But the price rises still seem to be causing the biggest headache for non-drinkers.

A friend of mine recently visited a gimmicky bar chain, which I won’t libel here. She bought a non-alcoholic cocktail with enough ice to sink the Titanic, and her companion ordered a tumbler with enough whisky to raise it back up again. Yet the boozy buyer paid just £2 more.

Perhaps we should have expected this result. According to a YouGov survey, 39% of 18-to-24 year olds now self-describe as sober. The loss of this student demographic, which used to be a reliable source of income for pubs and bars, has doubtless dealt a blow to the industry. It’s likely one reason why over 3,000 taprooms have closed in London since 2020.

Struggling hospitality businesses are already introducing service charges to make up for the decline in sales and rising staff wages. They’ll be dealt another financial blow this October, when necessary new laws on tipping will nonetheless tip many businesses into the red.

There is also food and drink inflation to consider. In place of lager, my preferred liquid crutch is coffee, which is becoming more expensive due to poor global crop yields. Not to mention, drip pricing means I may have to pay 50p for a dash of oat milk, or even to order at the till.

Clearly, the soft drink surcharge is just one of many ways that hospitality firms are trying to keep the taps and cash flow going strong, and deal with an escalating pay crisis.

So what’s the solution? Well, I think Wham! put it best. “If you’re gonna do it, do it right”. Rather than splurge a fiver on supermarket pop, I’ve started sampling the range of non-alcoholic drinks that are taking over my local area, to really get my money’s worth.

There are plenty to choose from. Startups such as Drop Bear Beer Co and IMPOSSIBREW are challenging the keg lineup with delicious, fruit-infused concoctions that still cost less than a pint of pig’s ear. Combined, these innovative brands are kickstarting the alco-alternative market and introducing competition which, as we all know, leads to lower prices.

In today’s economy, even a dry drinking trip feels like you’re being robbed. Still, we must remember that £4.60 funds not just a Diet Coke; but a trip out, time with friends, and a small business. If that is the price we must pay to protect our pubs, bars, and cafes, so be it.

If tasked with imagining a typical digital nomad, many of us would picture someone who works for a large tech company. But while nomads were previously a “tech” crowd, the lifestyle is now being embraced by a much broader range of jobs, as new research shows.

According to a study by IT service provider Redcentric, 45% of UK workers would consider applying for a digital nomad visa to travel for work or work abroad.

Of those, accountants are the most likely to swap their suit-and-tie for swimwear this year. Almost two thirds of workers in the accounting profession say they want to leave their job or change careers for the opportunity to work abroad.

Who wants to be a digital nomad?

Digital nomadism has traditionally been a playground for tech workers. This is because most visa schemes mandate that applicants work for overseas employers; a privilege that was almost exclusively reserved for those based in tech roles who could work remotely.

The Czech Republic’s Nomad visa still asks for a degree in a STEM (Science, Technology, Engineering, and Mathematics) subject, or three years’ IT experience, from applicants.

Post-COVID, however, the majority of office-based roles can now be done remotely. This quick change has accelerated demand for Digital Nomad visas, with countries such as Japan, Thailand, and Italy all unveiling their own version in the past year alone.

The Redcentric research identified the top occupations that want to swap the briefcase for a suitcase as accountants. In this profession, 61% of respondents said they would be likely to move abroad to work as a digital nomad.

The other, top five occupations in favour of switching to a digital nomad job are listed below:

Unsurprisingly, two of the top five are typically tech-based roles. More than half of IT technicians said the opportunity to work as a digital nomad appealed to them.

That said, teachers were almost as likely to want to move abroad. During COVID, many school lessons were held online using video conferencing. This exposed UK tutors to remote work; and the Redcentric data suggests that many have been won over by the perk.

Similarly, VoIP software has enabled more call centre workers to base themselves at home, rather than chained behind the desk. This could be why 44% of employees in these professions said they found the idea of working as a digital nomad attractive.

Young people fuel demand for digital nomad jobs

Working as a remote tutor, or starting a call centre, are also two of the most popular career pursuits for those wanting to be self-employed or freelance. This suggests that the rise in digital nomadism links to the growing number of people registering as a sole trader.

Research shows that young people are most likely to want to freelance. 71% of 16-25 year olds in the UK have said they want to be, or already are, self-employed.

Of these, 44% say that flexible working is the most enticing element of working as a freelancer, an employee benefit that would allow them to choose when and where they work.

Unsurprisingly, Redcentric also found that the appeal to work abroad is especially favoured amongst the younger generation. On average, 64% of respondents aged between 16-34 want to move jobs or careers for this opportunity.

Those who are unable to work as a digital nomad are instead quitting their jobs and taking an early career break.

Research by hiring platform, Applied shows that Gen Zers are four times more likely to take career gaps to travel, compared with workers aged between 45 and 54 years old. The trend has been labelled the ‘quarter-life gap year’.

Do you want to work abroad, but fear you’re not in the ‘right’ career? Learn about starting a remote dropshipping firm, an accessible entry into being a digital nomad.

One of the UK’s fastest-growing startups, online banking giant Monzo, has reported its first annual profit, marking a key milestone in the fintech’s business journey.

Monzo, which has previously featured on the Startups 100 Index, posted a pre-tax profit of £15.4 million for the last financial year, after recording a £116 million loss a year earlier.

In the last year, Monzo also unveiled its first investing product, and raised almost £500m in new funding, boosting its overall valuation to an estimated £3.9 billion.

From start to fintech

We listed Monzo as one of our hottest new startups back in 2016, just one year after it was founded. At the time, it serviced 200,000 customers.

Eight years later, Monzo has matured. The brand’s user base now forms an army of 9.7 million customers, all wielding the firm’s famous coral-coloured bank card.

As a result, the firm has seen its deposits surge by 88% to £11.2 billion. Revenue has also jumped to £880m.

“In nine short years, Monzo has come from nowhere to a position where one in six UK adults has a Monzo account and we’re now the 7th largest bank in the UK by customer numbers,” Chief Executive Officer TS Anil said in a statement.

Monzo investments

Reaching the break-even point is one of the first signs that a fast-growth startup has become a fully-fledged business. But even at scale, Monzo is continuing to innovate.

Last year, it announced a new investment product with BlackRock Inc., named Monzo Investments. Users were able to invest in three different multi-asset funds managed by BlackRock directly through the app.

In future, it plans to expand into pension and mortgages products, to allow users to track their spending, saving, and investing in one place.

The firm is also investing internally. Monzo is currently hiring for 33 startup jobs this June, as it seeks to cement its market presence in the US.

Reportedly, the bank’s staffing expenses have risen by 47% during the year due to this supercharged recruitment drive.

The future of fintech?

Monzo’s new profitable status comes amid a tougher funding environment for UK fintechs. Decreased investor appetite saw funding levels drop by 37% in the first half of 2023.

Economic troubles have also made borrowing more attractive for Monzo users. Credit losses have grown by 75%, as customers lean into Monzo’s overdraft and credit lending features.

Despite this, and its new product launches, Monzo is prioritising profit alongside scale-up. The brand says it has made financial arrangements for bad loans worth up to 10% of its lending book.

Encouraged, cautious investors have now hedged their bets on Monzo. The brand raised £340m in March 2024, followed by a further £150m last month.

Ben Marrel, a venture capital CEO, told The Banker that Monzo has become a “beacon” that could serve “to reassure VCs who were previously hesitant about investing in bold fintechs”.

The cost of a pint could tip well over £5 for the first time this Autumn, as hospitality businesses grapple with a growing hospitality pay crisis.

Research by software brand three rocks®, shows that struggling firms (many of whom rely on service charges to bulk up balance sheets) plan to raise drinks prices by 10%. This will push the average cost of a pint up to £5.22, from £4.75.

The price hike comes ahead of a new law change, which will have big ramifications for hospitality businesses. From October, employers will legally need to give 100% of tips to staff, under the Employment (Allocation of Tips) Act 2023.

Cost of drinking crisis

Rising food and drink inflation has led to a surge in prices across the F&B supply chain, sending menu prices soaring in bars, restaurants, and supermarkets. Going out has become a luxury for consumers; and the new service charges could worsen the problem.

In three rocks®’ survey of 2,500 hospitality businesses, staff and customers, 74% of respondents said they plan to apply a service charge for pouring pints and making cocktails this year. The majority (52%) say they will add a standard charge of 10% to drinks bills.

The change would impact some regions more than others. Buying a pint could drain your wallet by £7.15 in London. This is followed by Belfast (£6.71) and Brighton (£6.60).

Meanwhile, based on the 10% figure, the three cheapest cities in the UK to purchase a pint will be Wrexham (£2.20), Bangor (£2.42) and Dunfermline (£2.97).

Most Brits support US-style tipping culture

There is good news for businesses, however. When three rocks® surveyed drinkers about their views on UK tipping, 73% of pub-goers agreed you should pay extra when buying drinks.

The research means Brits could be ordering a dash of American tipping culture. Across the pond, staff earn very low wages, and payroll is topped up by bigger customer donations.

34% of respondents told three rocks® they think bar staff should get at least 10%-20% gratuity. In fact, just one in ten say they think tips should be abolished in the UK.

Scott Muncaster, founder and Managing Director of three rocks®, said: “Tipping has long been a sticking point for [customers] with many not knowing what to expect and what to give. It’s encouraging that customers are supporting the industry.”

What is the Employment Act 2023?

In October, the implementation of the new Employment (Allocation of Tips) Act 2023 will mean that businesses will legally be required to allocate 100% of tips to their staff.

Today, just a third of hospitality organisations give 100% of tips to the workforce, according to the three rocks® data, which has resulted in a very low pay rate for hospitality workers.

But while the change is welcomed by those in bar and restaurant jobs, who tend to earn the National Living Wage of £11.44 per hour, reaction from SMEs in the sector – many of which rely on tips to make ends meet – is more sober.

Restaurants and pubs are already struggling to cover soaring operational costs, including rising energy bills, business rates, and staff wages.

In a recent Startups survey, 19% of hospitality firms said they would be unable to meet employee pay expectations this year, displaying the most negative sentiment of any sector.

Sadly, their financial pressures look set to worsen this October. One in five firms claimed the law change would increase their annual costs by £60,000-£360,000; an amount that would likely mean closure for many small UK pubs.

More help needed for hospitality

Government support has so far focused on supporting hospitality employees, instead of employers, by raising the minimum wage in April and now, the Employment Tipping Act.

Trade bodies might fairly celebrate the new laws on tippings for their boost to staff pay packets. But the payday is clearly counterbalanced by a very real threat to organisational profit margins and business survival. In this context, the rise in service charges makes sense.

The consequences are already being felt. Since 2020, over 3,000 pubs, clubs, bars, and restaurants have closed in London alone, resulting in an estimated 6,000 job losses.

Muncaster added: “The UK hospitality industry has been under immense pressure in the last few years. Beginning with the pandemic, then one of the biggest labour and skills shortages in decades, and now the cost-of-living crisis, operators need all the help they can get.”

Remote work has gone from the “new normal”, to the new nuisance for employers. Many high-profile companies are now rejecting home working. But without recorded case studies to rely on, their game plans are differing wildly.

Last weekend, JD Sports boss, Regis Schultz defended the brand’s decision to ask staff to come back into work four days a week. Manchester United, meanwhile, has gone on the attack; offering workers who refuse to return to the office a cash bonus if they resign.

Together, both strategies represent a carrot-and-stick approach to return to office (RTO) policies. But as demand for flexible working explodes in the UK, which – if either – will prove most effective at boosting office attendance?

JD Sports’ ‘soft approach’ to office work

JD Sports made headlines in early May when it issued a two-month warning that staff would be expected back in the workplace from July. Previously, employees at the firm’s head office were able to work from home as often as they liked.

Schultz seems confident that embracing office work will positively impact performance. Commenting on the decision, he told Retail Times: “I think that we feel that [a return to the office] is the right way to work”.

Crucially, JD Sports has given staff plenty of leeway to adjust to the change. Managers have been told to continue appraising requests for flexible work, suggesting workers who need to work remotely will still be able to do so (also the case with another large retailer, Boots).

The company has also confirmed that staff members who do not comply with the rules will not be let go as a result. Which brings us to…

Manchester United subs off remote workers

Compared to JD Sports, Manchester United has taken a stricter approach to its RTO. Boss, Sir Jim Ratcliffe told over 1,000 workplace team members last month to return to full-time office work on 1 June, giving them roughly three weeks to prepare.

After a poor response from its employee base, the club emailed staff to confirm that anyone who does not comply with the new rules can quit within the next week and receive a four-figure payout. No ifs, buts, or maybes.

Fellow brands which haven’t bothered with niceties include Dell Technologies and WebMD. The former implicitly told staff that home working will leave employees less eligible for promotion, while the latter told workers in an internal video, “we aren’t asking or negotiating”.

Manchester United versus JD Sports

It is not surprising that firms are struggling to strike the right balance when it comes to an RTO. After all, this is uncharted territory for most businesses. However, the pros and cons of each strategy are already becoming apparent.

JD Sports’ decision to make remote work available at managers’ discretion might go down better with employees. Still, it is unlikely to improve office attendance. 70% of UK managers have allowed staff to work from home, despite their company’s official RTO policy.

Manchester United’s hard-line RTO policy could also backfire – even if the effects are not felt immediately. One survey of workers who were told to come back into the office found 64% were job hunting, suggesting the club could begin leaking talent (and not just Erik ten Hag).

Plus, while Ratcliffe has said the RTO will boost productivity, the evidence says otherwise.  Data from software company Protime UK shows that 33% of hybrid workers report working longer hours at home, suggesting an RTO could instead produce a drop in output.

Are RTO mandates worth it?

It is too early to say if either Manchester United’s or JD Sports’ RTO policies will lead to an employee exodus. However, the consequences of a poorly-managed RTO policy go beyond just heightened staff turnover.

Flexible work is now perhaps the most in-demand employee benefit for job seekers. UK workers have clearly been won over by the work-life balance and cost savings it guarantees.

That’s why losing this privilege can drastically lower staff morale, as Lloyds Banking Group discovered when it reported a fall in employee engagement as a result of its RTO mandate.

Naturally, RTO mandates also put companies at a significant disadvantage when it comes to the talent wars. In desperation, some office-only workplaces have even raised pay for new hires. Yet research shows employees would accept a pay cut to work from home.

Whether they play good cop or bad cop, companies with the wrong RTO policies risk jeopardising their relationship with their staff. Neither Manchester United nor JD Sports has received positive feedback from the workforce, and Schultz admits he expected pushback.

With this in mind, it is crucial that companies consider whether prioritising ‘meat in the room’ is more important than having a satisfied, motivated workforce.

One of the world’s most popular destinations for remote workers has announced a new, more relaxed version of its Digital Nomad visa in order to stimulate a revival in tourist numbers.

The new ‘Destination Thailand Visa’ or DTV is valid for a period of five years and will allow internationals to work in the country for at least six months. This means it has a much lower barrier to entry than Thailand’s previous Long-Term Resident (LTR) visa for nomads, which costs £12,000 a year.

Thailand is expected to start accepting DTV applications in July. Below, we’ll explain how the new visa works, what you need to qualify, and when you’ll be able to apply for it.

Destination Thailand Visa: eligibility requirements

Thailand does not have an official Digital Nomad visa. Remote workers have previously relied on the country’s short-term tourist visa, or its expensive LTR visa, to work in the country. Both of these have significant time and cost drawbacks, however.

The DTV is Thailand’s most relaxed visa programme yet, and among the most accessible in the world for new applicants. To apply, you must:

• Be at least 20 years old
• Have savings of £10,666 (500,000 baht)
• Pay an application fee of around £210
• Not work for a company based in Thailand

These restrictions are light compared to other Asian countries. To qualify for Japan’s new Digital Nomad visa, for example, applicants must earn around £52,700 a year, whereas Thailand’s DTV does not appear to have any income requirements.

How does the Destination Thailand Visa work

Successful applicants will be able to live and work remotely in Thailand for up to 180 days. Should they want to stay in the country, they will be able to renew the visa for another 180 days at a cost of £210, at any time within a five-year period.

Holders of the new DTV cannot work for a company based in Thailand, as they would legally need a work permit to do so.

Excitingly, however, holders will not need to show an employee contract, which means self-employed workers such as sole traders can also base, and run, their business in Thailand through the scheme.

Despite its lax eligibility requirements, the DTV also allows holders to bring legal dependents (such as a spouse or children under 20 years old) with them to the country.

This is in contrast to the UK government, which recently raised the minimum annual income normally required to sponsor someone for a spouse/partner visa to £29,000, from £18,600.

Thailand is expected to fully legalise gay marriage by the end of 2024, so same-sex partners should qualify for the spousal visa by the time the application is accepted.

How to apply for the DTV

The DTV is not yet available and the government has not confirmed the application process. Likely, it will be similar to the LTR visa submission process, which asks interested workers to fill in a form on the Thai government’s online visa portal.

Reportedly, the Thai authorities will begin accepting applications for the new Destination Thailand visa in late June or early July 2024.

Tax implications of the DTV

Previously, if a person was working remotely in Thailand, they could avoid paying Thai tax on earnings. But last year, the Thai government confirmed it would begin taxing all international income for people who stay in the country longer than 180 days from January 1 2024.

Handily for Brits, Thailand has a double taxation agreement with over 60 countries, including the UK. This means if the income is already taxed in the UK, Thailand won’t tax it again. 

If you choose to extend your DTV to longer than 180 days then, as long as you complete a self-assessment tax return in the UK, you will not be liable to pay income tax and can instead claim credit when filing Thai taxes.

Fancy working abroad from somewhere a bit closer to home? Discover Italy’s new Digital Nomad visa programme, which launched in April.