However, I am coming across some attitudes that appear narrow and out of touch. I agree with much of what Bannatyne says but with two exceptions.
First, with regard to loyalty, the idea that workers should stay with the same company for years seems very much out of date. Isn’t England’s labour force increasingly educated and mobile? Most common career wisdom and advice in the US suggests that ambitious and talented workers should not stick with the same company for ever, unless the company rewards performance with promotions, increased pay and opportunities. Even in Japan, the “cradle to grave” approach to employment is going the way of the dodo.
In today’s labour market intelligent employees owe loyalty only to themselves — give me the name of one company known for its loyalty to employees when profits are falling.
Second, with regard to checking prospective employees’ ages, I am a bit shocked that The Sunday Times would publish an article that advocates ageism.
Isn’t ageism already at least politically incorrect in this country? In case you didn’t know, ageism is going to be illegal in a couple of months throughout the European Union.
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Anna Demetriades
Weybridge, Surrey
Credit worthy: There is much confusion about the link between inflation rates and interest rates, and their role as an economic indicator for businesses and consumers (“Inflation data will calm rate fears”, Business news, last week).
One major area for the economists to consider is that the link between base lending rates and the cost of commercial credit is tenuous to say the least. The availability of money to a lending institution comes at a price, determined in large part by the London Inter-Bank Offer Rate (Libor), but the rates at which money is lent unsecured to commercial borrowers is entirely dependent on their credit rating, and may be quite a number of points over Libor.
Secured and asset-backed lending (such as leasing) is less risky, and therefore is much more influenced by base rates. Equally, specialist lenders who really understand the markets to which they are lending, can do so at a rate which the generalist lenders are unable to offer, because they cannot assess risk so accurately.
It would therefore be very illuminating were one of the market-research organisations to do a regular study on the trends in unsecured and secured corporate lending, as well as the balance between generalist and specialist lenders.
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Jonathan Andrew
chief executive Siemens Financial Services
Harrow, Middlesex
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