SMEs wasting billions on legal services
Posted on in Business News , Cycles News
Small businesses in the UK collectively spend around £60 billion per year on professional services, yet more than £12 billion of that figure is wasted on unnecessary or bad advice.
According to the research by Zeqr, SMEs in the UK admitted to wasting a grand total £12.6 billion on external assistance in professional services, which they felt failed to improve the performance of their companies.
As many as two in five respondents said they found "inefficient" fixed fees to be the main reason for dissatisfaction at the service they received. In particular they cited only needing to ask an HR specialist one or two questions, but being forced to pay an expensive fixed or ongoing fee, as contributing to this lack of value for money.
There is a particular shortfall in employment law advice for SMEs, which is leading to a growing number ending up at tribunals to settle disputes, which can be costly. The mean cost of representation for SMEs at an employment tribunal is £4379, according to the Competition & Markets Authority (CMA).
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