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Technology investment rises ahead of budget clarity
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New research reveals marked increase in technology investment, while employee wellbeing and ESG initiatives face harshest cuts, according to the latest research by innovative payment solutions provider Equals Money with nearly all financial leaders (90%) report being impacted by Budget uncertainty in 2024, with over two-thirds (70%) choosing to delay or cancel planned investments as they await clarity from the upcoming Autumn Budget.
However, 63% of businesses say they plan to increase investment in technology to improve operational efficiency (26%); leverage AI (22%), and control costs (25%), whilst a further 21% say they plan to invest in technology specifically to help manage cash flow.
Looking ahead to 2025, Equals Money’s research found that employee wellbeing and benefits were cited as a low priority for business investment with just 14% reporting they would invest in employee wellbeing, with those in manufacturing (11%) technology (10%), construction (8%) and hospitality (6%) being the sectors saying that employee welfare was a low priority.
Steve Paul, Deputy CFO at Equals Money, commented, “Managing business spend is complex at the best of times, but when you throw in a new Government and an uncertain market, it only heightens the challenge,” comments Steve Paul, Deputy CFO, Equals Money. “It’s important to remember that market uncertainty doesn’t need to prevent businesses from growing. With the right tools in place, such as currency hedging and clear budget oversight, financial leaders can still make smart and safe investments, but our research highlights that far too few companies are utilizing the data available to them to help in this decision-making. Despite the fact that data and financial insight are considered either critical for all decisions (30%) or used regularly in company decision making (58%), only 45% currently use budgeting and forecasting software, and 26% still report relying on manual tracking methods.”
“There is a clear shift on the horizon, however, and our research is showing that 81% of companies are planning to either adopt new or upgrade existing financial tools or software to better manage business spending and improve financial visibility. Financial tools don’t just help your accountancy department, they can add value across the entire business.”
“While holding back spending for employee wellbeing or ESG initiatives might offer short-term cash-flow relief, these investments are often key to longer term goals,” says Paul. “By sorting back-office functions and providing better budget clarity, financial leaders can offer more strategic consultancy across company-wide investment decisions.”
Despite environmental challenges, Equals Money’s research reveals that only 14% of businesses say that ESG is a priority, with ESG initiatives ranking the lowest in priority for firms in finance and insurance (11%), business administration services (11%), technology (10%) and hospitality (6%).
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