Lack of profitability has become ingrained in the equestrian industry – but there are ways for businesses to be viable and compliant with the law.
This was the view of Ali Dane, owner of Hurston Dressage & Eventing, who spoke about the impact of national minimum wage (NMW) increases, at the National Equine Forum on 7 March.
“As an employer in the equestrian industry, this topic is on my mind almost daily,” she said. “We’re now about to see the biggest ever increase to the top bracket.”
The top-rate NMW goes up from £10.42 to £11.44 on 1 April, and the age at which this applies will go down from 23 to 21. As Ms Dane pointed out, this will mean a 21-year-old working a 57-hour week will be entitled to £10,000 more per year.
“If our industry is to survive, we need to adapt, modernise and professionalise,” she said.
“There are plenty of issues I don’t know how to solve but I know how to solve poor employment. Good business and valuing people more. Lack of profitability is baked into the bones of our industry, equestrianism has been a vocation or hobby rather than commercial, workers don’t earn enough to support themselves. That has to change.”
Ms Dane said employers have to carry out business analysis; looking at key performance indicators, the market and threats to any business, for example. She said compliance is key, with wage legislation, insurance requirements and so on, as is forecasting and budgeting. Every autumn, she contacts suppliers about that winter’s stock and prices, checks the news for minimum wage increases, and then contacts clients about the following year’s price increase.
“I increase prices every year, as everyone should,” she said. “Ensure clients pay a month ahead and are aware of deadlines as the bills don’t stop.
“And people are the heart of your business. Horses are the raison d’etre but don’t pay the bills; you need to value your people as much as your horses.”
Ms Dane also encouraged allowing flexible working patterns and career progression, adding: “The solutions are staring you in the face; better business management and more value on the wonderful hard-working dedicated people in the industry. If we’re to ensure we pull through this staffing crisis, good employment must be the norm, not the exception.”
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