The majority (95 per cent) of UK senior finance leaders in retail have reported missed growth opportunities over the past year because employees lack direct access to their own budgets, according to new data from Soldo.
Despite 77 per cent of senior finance leaders saying they’d trust employees with company funds, many are still hesitant to grant direct access, resulting in a productivity bottleneck. One of the primary reasons for this is a perceived lack of employee understanding around finance policies (43 per cent), resulting in nearly three quarters (72 per cent) admitting to bending the rules to gain access to company funds.
The research, conducted amongst employees and finance leaders in retail, highlights the critical impact that restricting budget access can have on hindering growth potential:
- Missed revenue opportunities: Of the 95 per cent of senior finance leaders that reported missed opportunities in the past 12 months, many note substantial financial consequences, including financial losses (37 per cent), loss of existing customers (42 per cent), and delayed product or service launches (47 per cent).
- Project delays and frustration: Nearly half of employees (45 per cent) say interactions with finance have slowed projects, with 34 per cent pointing to slow response times from finance, and 22 per cent noting a focus on cost-cutting at the expense of growth.
- High administrative burden: Half of finance leaders spend six or more hours a week managing admin related to decentralised spending, with 55 per cent admitting that adjusting budgets as business priorities shift remains a significant challenge.
Meanwhile, 80 per cent of finance leaders report that overly complex financial processes slow down or prevent them helping employees in the pursuit of new business opportunities once a month or more. They additionally revealed that finance teams are frequently facing surprises at month-end (40 per cent), which pull focus from growth strategies.
Brandon Till, head of Business Solutions at Soldo, says: “In retail, speed and agility are everything, whether it’s restocking inventory, launching promotions or adapting to shifting consumer demand. But when employees can’t access the budgets they need, operations stall, innovation slows and ultimately, growth suffers. Particularly when there are multiple stores to manage and dealing with a high variation in seasonal spending, having greater flexibility of company finances enables retailers to adapt to shifting demands and streamline expense tracking.
“By empowering employees with responsible budget access and equipping finance teams with smarter tools to manage decentralised spending, retailers can navigate financial complexity more effectively, reduce inefficiencies and drive sustainable growth.”
Share