Australian small businesses are being warned to brace for continuing labour shortages this year as staffing woes continue to impact operations across a range of industries. Phil Parisis, Head of Product and Sales at My Business, the country’s largest business organisation, says one of the biggest issues facing SME owners in 2023 will be how to attract and retain staff.
“For many small businesses who managed to survive COVID, these ongoing staffing shortages are the final straw,” he says.
“Whether it be being forced to reduce opening hours, having to put growth plans on hold or being unable to keep up with customer demand, the labour skills shortage is having a huge impact on workplaces across the country,” says Mr Parisis.
“A recent survey of our members found 77% of them have found the quality of job applicants average or below for the advertised role. They’re struggling to find the right people.”
Industries expected to continue to feel the brunt of labour shortages in 2023 include hospitality, retail, transportation and construction.
“As a small business owner, recruitment can be overwhelming, not only does it feel like larger organisations have a greater pull power and the ability to outbid workers but there’s also the additional responsibility of having to correctly onboard new staff and ensure everything is above board,” he says.
“Here at My Business we’re trying to make recruitment easier for SME’s by making things simple with tailored recruitment checklists and legally drawn up contract templates for hiring new staff.”
Mr Parisis offers these tips for small business owners on how to attract and retain staff in 2023:
Give them equity.
“Think about involving your people in the business through an employee share scheme. These are now easier and much cheaper to put in place than previously and they’re a great incentive to attract quality job candidates that relieves the pressure of having to offer competitive salaries. By allowing your employees to share in the growth and success of your business you’re also giving them a reason to stay.”
Be flexible
“Staff these days value flexibility so don’t be afraid to think outside the box. Don’t just offer remote or hybrid working but reconsider non-traditional working hours and be open to job sharing.”
Be human
“People want to work for businesses that care about more than money. Small businesses have a huge advantage over larger organisations because they can take advantage of their flatter organisational structure to make their staff feel cared for and valued.”
Benefits
“Re-evaluate what benefits you’re offering staff and what they cost to the business. Some of the most popular benefits you could offer are also cost effective such as shorter Fridays during the summer months.”
Personal touch
“During the hiring process make sure you respond to all your applicants. Help make them advocates for your business even if they don’t get the job.”