Which areas are employers focusing on lately?
A new survey has found a majority of small and medium-sized businesses (SMBs) across five countries report rising costs as their top business concern.
Peninsula Group surveyed 79,000 SMBs in Australia, Canada, Ireland, New Zealand, and the UK to find out the top priorities and concerns employers have with the new year coming in. Nearly half of these SMBs prioritize expansion and growth. Interestingly, this figure has significantly decreased from almost 60% observed in the previous year, indicating a more challenging economic environment for businesses presently.
Differences in business focus are apparent across various regions. In Australia and New Zealand, a substantial number of businesses are focused on survival. Conversely, in the UK and Ireland, there is a notable decline in businesses adopting a survival-centric approach compared to the preceding year, presenting a more positive outlook.
Beyond financial concerns, attracting and retaining skilled personnel stands as a major hurdle for these enterprises. Over 50% of these employers are resorting to financial incentives to ensure employee retention, with Canada leading in this endeavor.
However, monetary incentives are not the only means employed to improve employee retention. Non-monetary acknowledgements such as increased appreciation and mental health support are on the rise, particularly in the UK.
Addressing the shortage of skilled workers, nearly half of these businesses are investing in training and upskilling their existing workforce. Moreover, there is a notable inclination towards adopting apprenticeships, with Canada displaying a notable interest in this model.
With regards to working patterns, despite reduced workweek garnering increasing attention, many businesses have not adopted the model in reality. Only 2.2% of SMBs have transitioned to a four-day workweek. The majority maintain conventional work structures, although some offer flexibility in working hours or a hybrid working policy.
Raj Singh, CEO of Peninsula Canada, remains optimistic despite the challenging economic climate. He emphasizes the importance of businesses focusing on fostering employee development. Singh asserts that by prioritizing the professional growth of their workforce, businesses not only address labour shortages and retention issues but also cultivate a proficient and motivated workforce, fortifying their foundation for success in an evolving business environment.
“In 2022, we found that the top two concerns for employers were labour shortages and employee retention. Faced with these obstacles, SMBs acknowledged that fostering employee retention was key. And one of the best ways to overcome these challenges, was to invest in their employees and that is what we saw happen last year,” said Singh.
"By prioritizing the professional growth of their employees, businesses not only mitigate the effects of labour shortages but also cultivate a skilled and motivated workforce, fill in gaps in the workplace, and set the foundation for continued success in the ever-evolving business landscape."
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