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Micro-businesses hit hardest by staffing woes: Report

July 7, 2023
in Business
Micro-businesses hit hardest by staffing woes: Report
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Recent data suggests that the post-pandemic phenomenon known as the “Great Resignation” may have reached its peak, but the labor market is far from stable.

Job advertisements have declined in the latter half of 2022, indicating a potential slowdown in the resignation trend. However, the vacancy rates remain alarmingly high, reminiscent of the levels witnessed during the global financial crisis.

In a bid to shed light on the ongoing labor shortage struggles, Small Business Loans Australia commissioned a comprehensive research study. The findings reveal a troubling reality, with more than two-thirds of businesses grappling to find suitable staff. The study involved an independent panel of 210 business owners and senior decision-makers, representing a diverse range of small and medium-sized enterprises (SMEs).

Among the most affected are micro-businesses, where a staggering 80 per cent of them find themselves unable to fill their job vacancies. This finding underscores the significant challenges faced by these smaller enterprises in attracting and retaining qualified employees. While approximately 21 per cent of micro-businesses believe that 2023 has been comparatively easier for staff recruitment compared to the previous year, the survey results paint a different picture for small and medium-sized businesses.

The data suggests that the situation has continued to worsen for a significant portion of these businesses throughout 2023. About 29 per cent of small businesses and 27 per cent of medium-sized businesses report ongoing difficulties in finding qualified employees. These figures highlight the persistent struggles faced by businesses of varying sizes in securing the talent they need to thrive in the post-pandemic recovery.

This labor shortage is not confined to a specific region but is being felt nationwide. Across the majority of major Australian states, similar rates of difficulty in finding suitable staff were indicated. Western Australia and ACT lead the pack, with 76 per cent and 75 per cent of businesses, respectively, struggling to fill staff roles. Queensland and Victoria also face significant challenges, with 73 per cent of businesses in both states experiencing the same level of difficulty as in 2022, if not worse.

In ACT, the situation has worsened compared to last year, with 50 per cent of businesses reporting increased difficulty in finding staff, while Western Australia, New South Wales, Victoria, and Queensland have faced more stable but still challenging conditions.

The impact of labor shortages extends across various industries, with the private sector bearing the brunt. In fact, over 90 per cent of the 480,000 job vacancies observed this time last year belonged to private companies. While businesses in the healthcare and technology sectors have experienced some relief, with 56 per cent and 65 per cent respectively reporting improved ease in filling vacancies compared to 2022, the hospitality industry continues to struggle. With its reliance on casual staff and high turnover rates, more than 80 per cent of hospitality businesses are still facing difficulties in filling roles at the same rate or even worse than the previous year.

The manufacturing and agriculture sectors have been hit particularly hard, with a staggering 94 per cent and 100 per cent respectively unable to fulfill their staff vacancies. These numbers shed light on the critical challenges faced by industries that form the backbone of the economy, jeopardizing their ability to meet production demands and sustain growth.

As the labor shortage persists, businesses across Australia are grappling with the complex task of attracting and retaining talent. The need for innovative solutions and strategies to address the ongoing labor market challenges has become more urgent than ever before. 

Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “The problem of finding staff is nationwide, and can be attributed to a combination of factors, including burn-out among working-age Australians and changes in employment law, including increased minimum wages. SMEs appear to be hit hardest, which is concerning as they constitute the vast majority of the Australian business market.” 

“Employers should alter their expectations when hiring new staff, and instil operational changes, which will change the way their current employees work, such as adopting time-saving automation where possible in their day-to-day business.” 

The full survey results, including breakdowns across business sizes and States, can be found here: https://smallbusinessloansaustralia.com/sme-employees-2023/ 

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Dynamic Business – https://dynamicbusiness.com/topics/news/micro-businesses-hit-hardest-by-staffing-woes-report.html

Tags: businesshardestMicro-businesses
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