If you are passing by or coming in to meet with us, you will notice that building works have begun at Holman Hodge! Our new office space is under way, and we are excited to share what’s Next for us in 2024.
As we address the potential impact of 60 day dispensing and a tight retail environment on pharmacy profitability, in our last blog, we looked at workforce planning. We partnered with boutique human resources (HR) consultancy firm, Bespoke HR, who shared insights into what workforce planning is, key areas to consider and requirements under the Pharmacy Modern Award 2020.
As with any element of organisational change, leadership is key. In this blog, our Holman Hodge pharmacy accounting team sought insights from Paulette Kolarz, Managing Director of Bespoke HR. She discusses the evolution of the new leadership landscape and driving performance, as well as workforce opportunities to consider in workforce planning.
As we are all aware, the introduction of 60 day dispensing and a tight retail environment presents a series of challenges for pharmacies, one of which is finding innovative ways to offset any negative consequences to profitability. As pharmacy accounting specialists and business advisors, we have been working with our pharmacy clients on ways to address revenues and profitability. It is important to consider what role workforce planning can play to ensure pharmacies are flexible and can adapt to possible shifts in potential operating models. This may include considering whether there is a need to change your structure, change work hours, and, in some regrettable cases, possibly consider redundancies.
We have partnered with boutique human resources (HR) consultancy firm, Bespoke HR, to highlight key considerations in navigating workforce planning in this new environment, as 60 day dispensing and environmental factors change the pharmacy landscape.
As part of the Federal Budget 2022 – 23, the government announced support for small business, in the form of two bonus tax deductions:
- The Technology Investment Boost
- The Skills and Training Boost.
The legislation enacting both announcements has now passed Parliament and impacts the preparation of 2023 income tax returns.
The potential impact of 60 day dispensing
It is common for pharmacies to be owned in partnership between the ’Founder / long term owner’ (Founder) of the business and younger partners. This is often part of a succession plan for the Founder. Alternatively, it may be a result of a key employee retention model.
In both scenarios, the equity held by the Founder in the business is ’used’ to provide the incoming partner with the capacity to borrow funds to acquire their partnership interest.