Grant Thornton’s recent International Business Report (IBR) research has revealed there is a downturn in overall general business confidence as we enter a new year – dropping 17 per cent from the first half of 2022. The results are in correlation with the ABS reporting the highest inflation rates Australia has seen in many years creating a range of pressures for Australian businesses including increased operating costs with rising wages and electricity prices, and weather conditions impacting supply chain.

Despite low optimism, Australian businesses are looking to implement automation tools to improve efficiency to curb the impacts of inflation, with businesses looking to implement them within their accounting, operations, and IT departments. Nearly 50 per cent of those business units revealed they will use automation tools and incentivise employees to work more efficiently in 2023, with investment in technology up 7 per cent from the first half of 2022.

While we still battle a war on talent with increasing uncertainty of available skilled workers since early 2020, Australian businesses are considering implementing a 4-day working week as part of improving efficiency to slow the impacts of inflation. Australia’s IBR results show 30 per cent of Australian businesses have already implemented the 4-day week to incentivise staff, with another 24 per cent of respondents wanting to implement it as soon as they can. 

Despite Australia being slow to adopt this new way of working compared to its international counterparts, there is momentum for a shortened working week locally. Grant Thornton expects automation in technology and the 9-Day fortnight will improve client experience, staff efficiency, and boost the quality of work.

Fraser McNaughton, Grant Thornton CMO & Industry lead said: “In response to rapidly rising interest rates and a looming economic downturn, businesses operating in industries which aren’t perceived as ‘recession-proof ’such as retail, food and beverage, and leisure may be feeling the most pressure. For these businesses, automation is key for navigating uncertain economic times – it should lead to efficiencies, allowing value to be added in other parts of the business when revenue and profit might not be at its highest.

“It is also great to see the IBR results have reinforced our firm’s decision to roll out a 9-day fortnight as it shows finding efficiencies is an important goal for Australian businesses in 2023. Businesses who trust their employees to work smarter and not harder over a shortened working week will succeed in attracting and retaining the best talent in a very challenging job market.

“As a result of the IBR research findings and in response to a potential recession, it is critical Australian businesses look for ways to find efficiencies in their business throughout 2023 – whether that be through automation of current manual processes, fully utilising existing software, or incentivising staff,” continued Fraser McNaughton, CMO & Industry lead.

Grant Thornton International has released information on its Global IBR results here: Global business optimism falls as mid-market prepares for ‘unusual’ recession.

** Research methodology of the Grant Thornton International Business Report

Grant Thornton’s International Business Report (IBR) is a survey of both listed and privately held businesses. Launched in 1992, the IBR now provides insight into the views and expectations of around 10,000 businesses across 28 economies. Questionnaires are translated into local languages and fieldwork is undertaken on a biannual basis, through both online and telephone interviews.  The data for this release is from interviews conducted from October to December 2022 with chief executive officers, managing directors, chairperson or other senior executives from all industry sectors.

Small to medium-sized enterprises (SMEs) are doing less than a third of what’s required for a healthy digital presence, according to new data from Navii’s Digital Health Check. 

The data, based on a survey of 602 SMEs, saw an average score of just 32.2% on a test of overall digital health, which tracks website, SEO, and social media best practices.

The average business scored just 42.8% on website basics such as a clickable phone number, having opening hours and contact information displayed, and including a business address.

The Digital Health Check surveyed SMEs across a range of industries, including education and training, retail, tourism, health care, hospitality, and more. 

An assessment of Facebook scores saw just 18.1% of best practice markers achieved. The health check assessed businesses for indicators such as ‘posted a minimum of two posts per week’, and ‘received at least five recommendations in the past two months.’

Instagram saw slightly better results over Facebook at 24.8%, with the assessment checking for signals of health including ‘listing your account as a business account’, ‘using Instagram Highlights’, and ‘using hashtags on every post’. 

On an assessment of search engine best practices, SMEs scored an average of 22.1% for Google My Business and local search and 30.0% for SEO best practices. The SEO assessment examined simple best practices such as having a content-rich website, being indexed in Google, and ensuring your homepage meta title and description comply with Google’s recommendations. 

Liz Ward, co-founder and CEO, Navii, said: “The results show there’s still a lot of work required for SMEs to achieve a healthy digital presence. Across the board, the SMEs we surveyed were underdelivering across their website, social media, and search engine scores and therefore missing out on opportunities for better exposure and engagement with their target markets.

“The good news is that in many cases, making a fix can be simple – and the rewards can be huge. Now is the perfect time to reassess your digital health and take the steps required to meet the needs of your digitally savvy customer.”

Meltwater, a global leader in social and media intelligence, and We Are Social, the socially-led creative agency, have released Digital 2023, their latest annual report on social media and digital trends worldwide. 

Digital 2023 shows that the typical internet user globally has reduced their average daily internet use by 20 minutes over the past twelve months to 6 hours 37 minutes, equating to a year-on-year reduction of almost 5 percent. However, time spent on social platforms has increased to more than 2½ hours per day — 40 minutes more than time spent watching broadcast and cable TV.  Analysis of the data suggests that people are looking for more purposeful internet use, with a focus on quality over quantity. The daily usage rate is a return to 2019 levels, before the COVID-19 pandemic had a profound impact on the world’s digital behaviours.

The 465 page report also shows that social platforms are claiming an ever greater share of the world’s search activity. 16- to 34-year-olds are now more likely to visit a social network when looking for information about brands than they are to use a search engine (48 percent vs. 45 percent), and half of the world’s social media users say that they actively visit social platforms to learn more about brands and see their content. While the rise of TikTok search has already caught the attention of the media, the latest data suggest that Instagram is social media users’ preferred destination when researching things. 

The growing importance of social media is reflected in global advertising spend, with investment in social media ads more than doubling since the outbreak of COVID-19,  to reach an estimated US $226 billion in 2022.

Additional headlines in Digital 2023, which looks at social media, internet, mobile and ecommerce trends globally, include: 

• There are 5.16 billion internet users in the world today, and 4.76 billion social media users. 
• Average daily mobile time has increased by seven minutes per day over the past year, and the typical Android user now spends more than five hours per day using their smartphone, however: 
• Computers still account for more than half of the time that people in North America and Europe spend using the internet. 
• Ownership of cryptocurrencies is in decline: the share of internet users who own at least one form of digital currency fell by three percent between July and October. 
• TikTok tops the global list of social media platforms when it comes to time spent per user on Android devices, followed by YouTube and Facebook.

Alexandra Saab Bjertnæs, Chief Strategy Officer at Meltwater said: “”Brands that want to be competitive today need to stay ahead of trends, searching for and identifying them, in order to understand their impact on any given industry. Consumers continue to spend more and more time on social media, and it’s clear that social will play an even more important role in the customer journey as users turn to platforms like TikTok and Instagram to guide their decision-making process. With more than 5 billion internet users today, it’s becoming more crucial than ever that brands deliver relevant, impactful, and purposeful content to capture attention and create value across digital channels.”

Nathan McDonald, Group CEO and co-founder at We Are Social commented: “Social media’s influence on how we live our lives continues to grow. From shopping to connecting, entertaining to searching, it’s inextricably linked to our habits both on and offline. It’s interesting to see internet use becoming more discerning – while being online is still incredibly important in our everyday lives, people rightly want to make sure it’s time well spent. Marketers and creators will have to work even harder to attract and retain people’s attention in 2023 – it’s never been more important to understand online culture in order to reach people in a relevant way.”

To view and download the report go to: meltwater.com/en/global-digital-trends

Three years into the pandemic, businesses are dealing with a multitude of crises and are trying to remain productive and profitable. Hybrid work practices remain complex and both business leaders and employees are grappling to understand how to adjust business practices to meet the needs of employees.

EPOS, the global audio and video brand, in partnership with Foresight Factory, has today published ‘The Workplace of the Future’ report to explore the current and emerging trends shaping the future of work, as well as the technology solutions that can help businesses to navigate a long-term hybrid strategy for a productive workforce.Key findings include:

• Employees are prioritising their wellbeing: Workers everywhere are taking agency of their wellbeing, both physical and mental, and over half of workers around the world (53%) say they are more likely to prioritise their wellbeing compared with life before the pandemic^[1]. As a result, workers increasingly expect their employers to form part of their health ecosystems with 38% of employees calling for their employers to support staff by allowing them time off for mental health needs. A further 30% of employees say they want to see businesses dedicating hours for employees to use for mental/physical wellbeing pursuits.

• Avoiding burnout and pursuing happiness are top drivers: Employee burnout is a persistent issue and 36% of global workers say they have suffered burnout in the last 12 months from ‘working too hard’, a feeling that is greatest among Gen Z (40%) and Millennials (42%). As the disconnect around remote working continues to grow between employers and employees, so does the discontent. Less than half of workers are happy with their current work and life balance (43%), and almost a third (30%) say they intend to change careers to improve their overall happiness.

• Access to a physical office is vital: Employees want to avoid feeling isolated and want to see businesses offering both physical and virtual opportunities for connection and collaboration. Half of employees say they miss spending time with colleagues in person now they can work remotely. This trend is highest among Gen Z and Millennials (80%) who are keen to use physical office spaces to learn, grow, and establish themselves in their workplace community^[2].

• Employees will leave if they’re not learning: The working landscape is becoming more demanding of employees, who are expected to rapidly upgrade existing skills or pick up new ones, and workers everywhere have embraced new opportunities for development and learning over the pandemic years. Now, 60% of employees of all ages are keen to continue learning, and 44% say they want to progress and upskill within their current job. If they can’t learn and grow within a role, they will leave to achieve their career goals.

• Sub-par tech solutions can lead to cognitive overload: Employers also need to be intentional about equipping employees with solutions that reduce the risk of cognitive fatigue. EPOS research has shown that in noisy environments the brain works harder to focus on the most important source of sound with this taking 35% more cognitive effort to listen. Over time this can lead to cognitive overload and brain fatigue, impacting employee stress levels, information retention, and performance.

Jeppe Dalberg-Larsen, President at EPOS says; “The world of work has never been as complex as it istoday. Business leaders who are invested in the future of their company and the future of their employees need to think intentionally about their hybrid strategies. There is no one size fits all approach. Though we have in recent years seen how technology has revolutionised modern work, it is no substitute for leadership and culture. Leaders today face a new set of challenges and must put their people at the heart of creating a workplace community that keeps employees engaged in the long-term.” 

Marta Vilella, Client Partner at Foresight Factory says; “Each business requires a unique and tailored plan that considers all aspects of business operations, people, and culture. Business leaders need to tune into the issues, challenges, and interests that most concern their employees and make any necessary changes to thrive as a team.” 

Report Methodology

On behalf of EPOS, and to complement the trends data, Foresight Factory engaged with a variety of leading businesses to understand their perspectives and observations of the current market. These authentic and first-hand experiences shed further light on the most pressing topics at the forefront of hybrid discussions and reaffirms that with so many changing factors that risks an employee’s loyalty, businesses need to intentionally align their policies to reflect the future of their workplace. 

For more information, and to access to the report, click here

80% of Australian small business owners feel “confident”, “optimistic” and “cautiously hopeful” about their company’s prospective performance in 2023 despite the economic slowdown, according to new research released today from online accounting software provider Intuit QuickBooks.

This outlook is likely informed by their business performance throughout the COVID-19 pandemic, with the commissioned research finding one-quarter (25%) of Australian small businesses experiencing consistent year-on-year growth across 2020-2022, while 45% saw slow but steady growth and 5% experienced soaring profits.

The remaining 25% of entrepreneurs who struggled to turn a profit during the challenging period reported a split outlook on 2023—while 23% of this group feel concerned and 21% uncertain, more than half (56%) have entered 2023 with an optimistic outlook. 

Lars Leber, Vice President of Intuit QuickBooks Australia, said, “Australian small business owners have been incredibly resilient over the past three years, and our research shows that these turbulent times have not shaken their spirit. It is encouraging to see there is a sense of hope for business growth in 2023 from the experienced entrepreneurs to those just starting out.”

Sales, product development and hiring the greatest opportunities for small businesses

Australian entrepreneurs see increased sales (52%), enhanced marketing activities (47%), improving or expanding their product offering (43%) and growing the customer base (41%) as the strongest opportunities to drive success within their small business this year.

While e-commerce might have boomed throughout the pandemic, four in 10 (40%) Australian small business owners see establishing a brick-and-mortar store or expanding their physical footprint as beneficial to drive growth.

Additionally, over one-third (38%) of local entrepreneurs see hiring new employees as an opportunity, and 18% are excited to digitise more of their administrative tasks so they can focus more on what they love.

“Small business owners have always been the backbone of Australia’s economy. This will not change in 2023 as they look to employ more staff, ultimately helping to improve economic prosperity,” added Leber.

Maintaining cash flow is the challenge to overcome

The top five concerns keeping Australian small business owners up in 2023 are maintaining cash flow (47%), the likelihood of a recession (45%), retaining and hiring staff (40%), breaking even (37%), and the potential impact of rising inflation (35%).

While external factors are out of their control, Leber said Australian entrepreneurs can address some of these challenges with the right strategies and tools.

“As a former small business owner, I know balancing the books can be one of the most stressful parts of running your own business, but a clear understanding of your cash flow is critical, especially in times of economic uncertainty. By implementing an accounting software solution and engaging an accountant, advisor or business expert, Australian small business owners can gain a clear understanding of their position and take back some of the control into 2023,” he said.

Intuit QuickBooks helps small businesses manage their books, get paid fast, manage capital, and pay employees with confidence. To find out more, visit quickbooks.intuit.com/au.

Wage Inspectorate Victoria has launched new online learning resources as part of a pilot program to increase awareness and understanding of Victoria’s long service leave and wage theft laws.  

The free e-learning modules for employers and workers are designed to improve understanding of and compliance with workplace rights and obligations. 

Taking less than 15 minutes to complete, the modules will be trialled over the coming months to test the effectiveness of e-learning to embed knowledge about workplace laws, with plans to add more topics if the pilot is successful.  

After finishing the courses, users are encouraged to complete a short survey to provide their feedback and rate the extent to which their knowledge about long service leave and wage theft has improved.  

Designed with stakeholder input, and with time-poor people and accessibility in mind, the modules include audio and interactive elements to provide an overview of the law and allow practitioners or people with specific questions to jump to topics they need help with.  

The long service leave module deals with topics like determining when Victoria’s Long Service Leave Act applies, how leave accrues and when it can be taken. It also covers how workers can recoup money they’re owed and resolve issues with their boss.  

The wage theft modules cover the legal definition of wage theft, how to address wage theft, the process of reporting it and the support available from the Wage Inspectorate. 

The employer focussed module also includes information on who can be liable for wage theft offences and can help organisations understand their role in preventing a corporate culture that could lead to a wage theft offence being tolerated.  

In November last year, the Wage Inspectorate filed wage theft charges against a Macedon restaurant and its officer – the first criminal wage theft charges laid under the Victorian Wage Theft Act 2020, and the first in any Australian jurisdiction.

Last year, more than 280,000 Victorians accessed educative information on the Wage Inspectorate’s website. More than 12,000 people also called the regulator, with many of their questions helping to inform the content for the new e-learning modules.  

Quotes attributable to Commissioner of Wage Inspectorate Victoria, Robert Hortle 

“The e-learning resources expand our suite of tools and provide another avenue for employers and workers to learn about the law. Understanding your rights and responsibilities has never been easier.” 

“This pilot is part of our commitment to trialling different ways of improving compliance with the law. Visits to our website over the past year have demonstrated strong demand for online learning, and we hope to attract even more visitors with these new resources.” 

“We know there is a variety of learning preferences out there, and that’s why we provide support through multiple channels – we have fact sheets, videos, frequently asked questions, a Helpline and now online learning. Being informed is the first step to being compliant.”

Wage Inspectorate Victoria promotes and enforces Victorian law covering wage theft, child employment, long service leave and contractors in transport and forestry.

The transport and logistics industry has been facing unexpected Supply chain disruption and a skills shortage for years as the average age for a truck driver gets older. This impact was somewhat being offset by migration, however, this all changed during COVID.

Migration stopped, freight demand exploded and staff with COVID cases across logistics went through the roof. To add fuel to the fire many remaining staff opted to take jobs where they could work from home and haven’t returned. All in all this left the industry with a low unemployment rate.

This resulted in a domino effect of declining performance and impacted SME’s bottom line as stock was taking longer to get packed and sometimes less accurately, by less experienced staff. There were also less forklift operators to load trucks, meaning trucks wait longer  and freight missing connecting linehaul to other cities.

With lingering impacts of covid and staff shortages still impacting the freight industry, small businesses need to learn from the past and brace for potential disruption of their supply during the busy seasons.

Holding more stock

Inventory management is key at any time of the year but it’s most especially important during peak seasons. It’s essential when providing a seamless customer experience and preparing for cost-effective storage space.

With more Australians shopping online, we’ll continue to see an increase in higher inventory levels and significant supply chain costs that could make or break an e-commerce brand’s bottom line.

Customers will also demand and expect a seamless experience especially during peak times. By having a well-planned inventory management practice, you’re giving yourself an edge against your competitors.

Ideally, SMEs should forecast to have just enough products to meet the uptick in sales but not find themselves with excess on their shelves when the season closes.

Have a variety of carrier options available

The benefit of using multiple freight carriers for your business rather than using a single carrier is knowing you’re getting the best price. The cost and charges applied by carriers can vary based on what you are sending. By using multiple carriers, you can get the best price based on the type of goods you are shipping at any given time. This can then save your business money, which means that you can more easily control budgets.

Another of the key benefits of using multiple carriers for your business is that you can find the right carrier based on the type of goods you are sending. Different freight carriers specialise in different types of goods, and you will often find that it is cheaper and easier to send certain goods with one carrier compared to another.

Sometimes, no matter how reliable your main freight carrier may seem, things can go awry. If you have problems with your freight carrier for any reason, it can end up having a huge negative impact on your business and your customers, which is the last thing you want. By having multiple freight carriers, you will have a vital backup in place just in case there are any issues with the main freight carrier you generally use. This means greater peace of mind for you, and the ability to continue with the smooth running of your business.

You may also find that certain freight carriers only cover certain areas and locations, and this could mean limitations on the service you are able to provide to customers. If you want to grow and expand your business, using multiple freight carriers can help you to do this because it means that you can effectively deliver to more areas.

Give your customers more choice on their deliveries

Customers will always expect instant gratification. Meaning they will want their items quickly and easily no matter their location. But, that poses a challenge for SMEs because it’s not always possible to meet those demands.

By offering different delivery options it empowers the customer to feel in control. It gives them choice and makes your SME more attractive while also offering the best delivery experience for them. As a business, you’re better equipped to manage expectations and optimise shipping costs.

Through these small changes SMEs can better set themselves up for success during peak seasons and be better prepared for Supply chain disruption.

Written by Matt Marshall, director at Freight People