Reviewing Employment Hero’s SME Index data, the economy is likely to cool as we head into 2024 and a small recession may even be on the cards, which will impact SMEs in multiple ways.
Still, in the ever-evolving world of business, small businesses are set to defy expectations and make their mark in 2024.
Ben Thompson, CEO and Founder of Employment Hero, said, “Small businesses – where they’re able to – will need to focus on maintaining growth and sharpening their competitive advantages. Beyond revenue generation, there will also be pressure to cultivate a productive and engaged workforce. This might be a lot for business owners and managers to consider but with the right planning and technology by their side, they can give themselves an advantage over larger competitors in the coming months.”
While the possibility of an economic downturn often means bad news for small businesses in Australia, Mr. Thompson believes that there are ways for business owners to gain a competitive edge in this challenging climate.
For instance, small businesses are breaking through barriers with the help of technology. AI technology is becoming more widely used among these employers, a trend we will likely see continue into 2024. According to Thompson, AI will increase productivity across SMEs and will allow employees to focus their attention on more strategic tasks.
“Automating repetitive administrative tasks allows businesses to free up time and resources better spent elsewhere; this is especially impactful for smaller teams where every minute counts. As the burden of admin reduces, teams can dedicate more time to innovation, customer service, and strategy – all vital components of competitiveness.
“A robust employee engagement platform can help small businesses establish a solid organisational culture that boosts morale and increases retention. A well-engaged workforce is more productive, creative, and loyal, attracting new talent and ensuring employees aren’t looking elsewhere for work with bigger businesses,” Mr Thompson continued.
Recognising the importance of a skilled workforce, small businesses are also investing heavily in recruitment and development. In 2024, these enterprises are ensuring they have the right employees and that they have all the tools they need to succeed.
Thompson says that if small businesses put their best foot forward, they could have an advantage over larger businesses when hiring. “While small businesses face recruitment budget constraints against larger companies, strategically showcasing strengths like culture, flexibility, and growth can help them compete effectively. SMEs also boast a faster hiring process, with 48 per cent filling a position in under ten days, compared to the industry average of 30 days. It’s important to highlight to candidates in this process that they can be a ‘big fish in a small pond’ whose achievements directly impact the business.
Advancements in AI are also seeing hiring tools become more available and affordable to SMEs to help level the playing field.
Mr Thompson said: “The use of AI-enabled hiring tools can not only better match employees and employers but also do it much quicker. Something we’re helping our customers to achieve with our SmartMatch service. This helps to ensure SMEs land the very best talent quickly and efficiently.
“Overall, small businesses should be confident in taking on larger competitors; they have ample opportunities to optimise their operations and gain a competitive advantage. Today’s digital technologies level the playing field, allowing smaller companies to rival their larger counterparts in efficiency and innovation.”
As we navigate 2024, small businesses are not just keeping pace; they’re thriving. Their successes speak to their resilience, innovation, and ability to rewrite the rules of business engagement in the modern era. The narrative is changing, and small enterprises have the potential to emerge as forces to be reckoned with in the business landscape.