Six in Ten Australian Businesses Struggle to Find Staff
New study shows skills shortages, recruitment and wage increases among the major challenges facing business in 2011
Sydney, 17 May 2011 - Six in ten Australian businesses state they are now struggling to find appropriately skilled staff while three in ten companies report that current staff are starting to make more wage demands. In a bid to retain and motivate staff, almost half (47%) of all Australian businesses report having increased pay levels for all staff during the past 12 months according to the Sage SME (Small to Medium Enterprise) Business Sentiment Index 2011.
Sponsored by Sage, a global leader in mid-market business software, the Sage SME Business Sentiment Index 2011 Index provides a snapshot of Australian business attitudes, priorities and issues. The study found staff and skills shortages are high on the list of challenges for 2011.
In particular, medium (20-199 employees) and large businesses (200+ employees) state that recruiting employees was the biggest challenge they faced in 2010 and will continue to face in 2011. Furthermore, recruitment is the third most important priority for business investment if they had more budget after information technology and marketing across all businesses, while the related issue of employee training was nominated as a priority by 45% of small businesses, rising to 52% among large businesses.
The re-emergence of skills shortages and recruitment as key business issues coincides with a small increase in business confidence since the same time last year and for the next 12 months. Almost four in ten (38%) Australian businesses believe that their business is performing better now compared to this time last year, compared to just 17% saying it is worse. Additionally, 33% stated they felt more confident about the year ahead, compared to 28% saying they felt less confident (a small increase of 5%). Micro businesses (those with four or less employees) remain the least confident about the next 12 months compared to a much more positive outlook among small, medium and large organisations.
While businesses clearly understand the importance of retaining and up-skilling existing staff in an improving environment, the report shows that surprisingly few organisations have structures in place to help this occur. Although nine in ten (92%) large businesses agree that yearly staff reviews and career development plans are essential to keep staff engaged, only six in ten (57%) actually carried out such plans for every employee in the past 12 months. Across all sized businesses, this drops to just over two in ten (24%) organisations that have undertaken and implemented reviews in the past 12 months.
Alan Osrin, Managing Director, Sage Software Australia, says, “What the Index shows is that there is a clear gap between what is required in employee management and what is being delivered. When the economy was slow and employees were loathe to move, that gap may not have seemed quite so important but with the return to business form, no employer can afford to take their staff for granted. The best way to retain skills and knowledge is to treat your staff right and that means regular reviews, ongoing career development plans and appropriate training.”
About the Study
The Sage SME Business Sentiment Index 2011 is the first in a series of market research studies to be commissioned by business management software specialist, Sage. The 2011 Index involved more than 600 business owners and decision makers across all business sizes and industries.
The results highlight current business confidence levels, attitudes to business and employment issues, investment priorities, major business challenges of the past 12 months and anticipated challenges for the year ahead.
About The Sage Group plc
The Sage Group plc is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has more than 6 million customers and 13,600 employees worldwide. We operate in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information please visit www.sage.com.
About Sage Business Solutions
Sage Business Solutions is a leader in mid-market business software offering true freedom of choice with an end-to-end suite of world-class ERP and CRM solutions. Designed for businesses of all shapes and sizes, we don’t believe in a one-size fits all kind of business solution. We can provide small, midsized and larger businesses with a comprehensive, integrated and complete solution that is uniquely tailored to their needs and requirements. Sage Business Solutions has offices and representatives in Sydney, Melbourne and Auckland, and more than 140 business partners throughout the Australia / New Zealand / Pacific Island region. For further information, visit: <http://www.sagebusiness.com.au.
About Sage HandiSoft
Sage HandiSoft Software develops and markets one of Australia's most widely used taxation and accounting practice management software suites for the country’s public accounting practices. It has a substantial market share with a suite of products designed around a common client database. HandiSoft's clients include over 6,900 practices of all sizes, from those with 70 or more staff to one-person, home-based practices. More than 60 per cent of its clients have been using HandiSoft software for over ten years. For further information, visit: http://www.sagehandisoft.com.au
About Sage MicrOpay
Sage MicrOpay is one of the largest and premier payroll and HR vendors with a client base in excess of 6,000 enterprises across all sectors. Our clients represent a large proportion of the Australian market (50-1000 employee segment) with more than 1 million people being paid monthly through a Sage MicrOpay solution. Sage MicrOpay has offices in Sydney, Melbourne, Adelaide, Perth and Brisbane with training and support available in all locations. For further information, visit: http://www.sagemicropay.com.au
Sponsored by Sage, a global leader in mid-market business software, the Sage SME Business Sentiment Index 2011 Index provides a snapshot of Australian business attitudes, priorities and issues. The study found staff and skills shortages are high on the list of challenges for 2011.
In particular, medium (20-199 employees) and large businesses (200+ employees) state that recruiting employees was the biggest challenge they faced in 2010 and will continue to face in 2011. Furthermore, recruitment is the third most important priority for business investment if they had more budget after information technology and marketing across all businesses, while the related issue of employee training was nominated as a priority by 45% of small businesses, rising to 52% among large businesses.
The re-emergence of skills shortages and recruitment as key business issues coincides with a small increase in business confidence since the same time last year and for the next 12 months. Almost four in ten (38%) Australian businesses believe that their business is performing better now compared to this time last year, compared to just 17% saying it is worse. Additionally, 33% stated they felt more confident about the year ahead, compared to 28% saying they felt less confident (a small increase of 5%). Micro businesses (those with four or less employees) remain the least confident about the next 12 months compared to a much more positive outlook among small, medium and large organisations.
While businesses clearly understand the importance of retaining and up-skilling existing staff in an improving environment, the report shows that surprisingly few organisations have structures in place to help this occur. Although nine in ten (92%) large businesses agree that yearly staff reviews and career development plans are essential to keep staff engaged, only six in ten (57%) actually carried out such plans for every employee in the past 12 months. Across all sized businesses, this drops to just over two in ten (24%) organisations that have undertaken and implemented reviews in the past 12 months.
Alan Osrin, Managing Director, Sage Software Australia, says, “What the Index shows is that there is a clear gap between what is required in employee management and what is being delivered. When the economy was slow and employees were loathe to move, that gap may not have seemed quite so important but with the return to business form, no employer can afford to take their staff for granted. The best way to retain skills and knowledge is to treat your staff right and that means regular reviews, ongoing career development plans and appropriate training.”
About the Study
The Sage SME Business Sentiment Index 2011 is the first in a series of market research studies to be commissioned by business management software specialist, Sage. The 2011 Index involved more than 600 business owners and decision makers across all business sizes and industries.
The results highlight current business confidence levels, attitudes to business and employment issues, investment priorities, major business challenges of the past 12 months and anticipated challenges for the year ahead.
About The Sage Group plc
The Sage Group plc is a leading global supplier of business management software and related products and services, principally for small to medium-sized enterprises. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage has more than 6 million customers and 13,600 employees worldwide. We operate in over 24 countries covering the UK, Europe, North America, South Africa, Australia, India and China. For further information please visit www.sage.com.
About Sage Business Solutions
Sage Business Solutions is a leader in mid-market business software offering true freedom of choice with an end-to-end suite of world-class ERP and CRM solutions. Designed for businesses of all shapes and sizes, we don’t believe in a one-size fits all kind of business solution. We can provide small, midsized and larger businesses with a comprehensive, integrated and complete solution that is uniquely tailored to their needs and requirements. Sage Business Solutions has offices and representatives in Sydney, Melbourne and Auckland, and more than 140 business partners throughout the Australia / New Zealand / Pacific Island region. For further information, visit: <http://www.sagebusiness.com.au.
About Sage HandiSoft
Sage HandiSoft Software develops and markets one of Australia's most widely used taxation and accounting practice management software suites for the country’s public accounting practices. It has a substantial market share with a suite of products designed around a common client database. HandiSoft's clients include over 6,900 practices of all sizes, from those with 70 or more staff to one-person, home-based practices. More than 60 per cent of its clients have been using HandiSoft software for over ten years. For further information, visit: http://www.sagehandisoft.com.au
About Sage MicrOpay
Sage MicrOpay is one of the largest and premier payroll and HR vendors with a client base in excess of 6,000 enterprises across all sectors. Our clients represent a large proportion of the Australian market (50-1000 employee segment) with more than 1 million people being paid monthly through a Sage MicrOpay solution. Sage MicrOpay has offices in Sydney, Melbourne, Adelaide, Perth and Brisbane with training and support available in all locations. For further information, visit: http://www.sagemicropay.com.au
