New research conducted by HR and workplace relations advisory service provider Peninsula Group reveals that an overwhelming majority of SMEs are concerned about the rising costs that will potentially adversely affect their business in 2024.
These concerns were specifically raised by 84.2 per cent of the SMEs surveyed in Australia, as well as in Canada, Ireland, New Zealand, and the UK. Staffing, meanwhile, also remains a major issue, with labour shortages being the second highest area of concern among SMES at 45.6 per cent with retention in third place at 41.5 per cent.
As a means of addressing the ongoing cost of living crisis that has affected their employees, 56.3 per cent of employers have offered financial remuneration as a means to retain them. Those who are unable to give financial incentives are turning to reward and recognition to aid retention, with this approach seeing a huge 131 per cent increase year-on-year.
Employers are also getting creative in addressing the skills shortage within their companies, with 46.5 per cent investing in upskilling and training their existing staff. Apprenticeships are also on the rise, with a 36 per cent increase globally.
While growth is the main business goal for SMEs, at 44.7 per cent, this figure is a significant drop from 58.7 per cent this time last year, reflecting the tough economic environment faced by businesses globally. Australia and New Zealand appear hardest hit, with 22.4 per cent and 26.6 per cent respectively listing survival as their main goal for the year.
“Despite the tough economic climate, there is an air of optimism amongst small-business owners as we move into 2024,” David Price, CEO at Employsure, commented. “Compared to this time last year, we’ve seen that while the labour shortage was a top concern, it’s been overtaken this year by rising costs – unsurprising after an economically unstable year in Australia.
“This financial concern, however, is coupled with an optimistic outlook for the year ahead with the top business goal being growth, signalling a laser-focused vision for employers,” Price added. “We’re expecting a fast-paced year ahead for Aussie small businesses, with ambition and entrepreneurialism at an all-time high.
“What’s also been interesting to see is that the majority of businesses have returned to the office full time,” Price pointed out. “This suggests that there’s been a behaviour shift of employers and employees needing more collaboration and team engagement, therefore, returning to a permanent office-first model. Globally, it’s indicated that this will be a tough year for many businesses, but there is also a mood of opportunity. Employers are seeing the value in retaining employees and, in turn, employees are reaping the benefits. More than half were given a pay raise and employers are looking at creative ways to retain employees, such as upskilling and training opportunities, or flexible working where a pay raise is not possible.
“As January starts – traditionally the time of year when most people look for new jobs – it’s no surprise that business owners are looking at ways to upskill and retain their own employees, rather than having to spend time and money recruiting,” Price concluded.
