Most business leaders agree a culture of curiosity will help them better tackle challenges, adapt and grow post-COVID

SAP SE has found Australian companies that foster a more curious culture¹ experience major competitive benefits, including up to twice the levels of employee engagement, and up to three times the turnover growth of organisations with a less curious culture, according to new research released today.

‘Capitalising on Curiosity’, a survey of business leaders and employees across Australia, found that Australian leaders who strongly agree that their organisation has a curious culture, saw annual turnover growth of 20.52 per cent on average over the last 12 months; more than three times the six per cent average growth in turnover experienced by those who only somewhat agree.

Business leaders at large organisations² that are very curious report turnover growth that is 10.67 percentage point higher than those who are not very curious, which could deliver additional growth of 2.5 million dollars in annual turnover, based on ABS turnover data for businesses of this size. Medium-sized organisations³ that are very curious could see an extra 1.7 million dollars and small businesses⁴ an additional 550,000 dollars in annual turnover⁵. 

More than eight in 10 (82 per cent) of senior business leaders in Australia believe a culture of curiosity is important for their organisation to adapt and grow in a post-COVID world but only four in 10 (44 per cent) strongly agree their organisation has a curious culture. The most common challenges senior business leaders say they would be better equipped to handle with a more curious culture are: employee engagement (41 per cent); being able to adapt to changing market needs (40 per cent); and dealing with staff retention (36 per cent).

Despite the positive link between curiosity and business growth, four out of five Australian employees (82 per cent) say there are barriers to asking questions and being curious in their organisation. More than eight in ten (85 per cent) of senior business leaders across the country feel the same, admitting that talk about encouraging curiosity is not always supported by action.

Dr Amantha Imber, organisational psychologist and founder of behavioural science consultancy Inventium, said: “Creating and nurturing a culture of curiosity in an organisation takes time, but ultimately it will strengthen your ability to be agile, adapt and innovate. At a time when businesses are experiencing more uncertainty from the pandemic, fostering a curious culture can be hard but it’s essential to build resilience and drive growth.”

Karen Twitchett, Director of Workforce and Technology at Northern Beaches Council said: “Building curiosity in your organisation is like building a muscle that helps to keep you fit through all kinds of challenges. We were able to flex our curiosity muscle in real-time during the recent floods. We provided the time, space and opportunity for our staff to engage with people in affected areas to proactively identify issues and collect data that will ultimately improve Council’s service offering to the community during extreme weather events in the future.”

Curiosity to attract and retain talent

In a market where the battle for talent has never been tougher, seven out of 10 Australian employees (72 per cent) want to work for a curious organisation, and more than half (52 per cent) would leave their current job for a similar role in a more curious organisation.

While employees are less inclined than leaders to categorise their organisation as having a curious culture, (67 per cent versus 89 per cent), the research found clear links between curious organisations and employee satisfaction.

Those employees who believe they work for an organisation with a curious culture are almost twice as likely to say they are satisfied in their current role (81 per cent compared to 44 per cent) and feel engaged at work (83 per cent compared to 42 per cent), than those who didn’t.

Battling fatigue in a world and workplace that is changing rapidly is also a factor, particularly in larger organisations, with one in three (32 per cent) employees from large enterprises saying employee burnout is a barrier to curiosity.

Curiosity essential to data intelligence

The research found that employees in more curious companies are better equipped to answer, and more capable of answering questions, using data than those who say their organisation is not curious.

Employees who say their organisation is curious are twice as likely to say they are empowered and encouraged to use data to answer questions than those who say their organisation is not curious (82 per cent compared to 40 per cent). They are also twice as likely say that their organisation provides the data and tools for them to do so (82 per cent compared to 42 per cent) and 1.5 times more likely to say they make good use of data and analysis tools (81 per cent compared to 55 per cent).

Business leaders who feel most strongly that their organisation has a curious culture are three times more likely to strongly believe their employees have the necessary skills to answer questions from organisational data (73 per cent compared to 25 per cent), than those who only somewhat believe they have a curious culture.

Damien Bueno, President and Managing Director, SAP Australia and New Zealand, said: “An organisation’s ability to truly realise the value of technology comes down to how well its people understand data and apply human curiosity. Asking the right questions at the right time, being confident to seek out data and draw conclusions, leads to better decision making and, ultimately, enables organisations to be bolder in approaching business challenges and able to take action on an idea with an informed approach.

“This understanding and confidence is key to the continued growth, success and transformation of Australian and New Zealand organisations, especially during the period of disruption we currently find ourselves in.”

Barriers to cultivating a Culture of curiosity

Australian employees identified a lack of reward or encouragement as the biggest barrier to curiosity while business leaders pointed to too much pressure to deliver on short term goals.

Almost half of employees (47 per cent) believe they are not rewarded for their curiosity and two in five (43 per cent) feel they are not given time to be curious at work. Meanwhile, over a third (39 per cent) say that asking questions and challenging the status quo is not encouraged within their organisation and this jumps to almost half (44 per cent) of employees working for large organisations in Australia.

Dr Amantha Imber said: “Being able to challenge and debate ideas and assumptions is critical for building a curious culture, but being curious and asking questions instead of jumping straight to conclusions takes time. SAP’s research suggests many Australian businesses are not giving employees the time or the space to be curious.”

“Business leaders who are serious about future proofing their organisation against the current climate of uncertainty need to start role modelling curiosity, giving staff time to explore and experiment, and rewarding curious and creative behaviour within their organisations.”

To view or download a copy of the full ‘Capitalising on Curiosity’ report which includes top tips for how you and your organisation can start building more curious cultures, please visit here.

Xero, the global small business platform, today announced the findings of a new report, which reveals that higher technology spend was linked to greater resilience throughout the pandemic for small businesses. The Xero Small Business Insights report, ‘Picking up the pace: trends in small business technology adoption and use’ shares new evidence that more digitalised Australian small businesses have better productivity, sales, jobs and payment outcomes.

Joseph Lyons Managing Director, Australia and Asia

The pandemic has spurred one of the biggest shifts in recent history when it comes to small business digitalisation.

The report, produced in partnership with Accenture, draws from the anonymised and aggregated data of hundreds of thousands of Xero subscribers to create new insights on the trends and benefits of small business digitalisation (tracked using ICT spend and app use) across Australia, New Zealand and the UK.

“The pandemic has spurred one of the biggest shifts in recent history when it comes to small business digitalisation. With Xero’s latest report, we have insight into the scope of this change for Australian small businesses – and a clearer idea of what may help on the path to recovery,” said Joseph Lyons, Managing Director Australia and Asia, Xero.

Pandemic ramps up small business’s digitalisation

Prior to the pandemic, Australian spending on digital services, like software, was already increasing, rising 70 per cent between 2009 to 2019. The pandemic drove this to new levels, with ICT expenditure up 13 per cent in Australia between March 2020 and June 2021.

Other markets, however, saw a more significant jump; 25 per cent in New Zealand, and 20 per cent in the UK. Similarly, there was variance among countries’ spend on technology. Australian small businesses spent 2.4 per cent of their total expenses on ICT, on average, in the first half of 2021. This was half the rate of peers in the UK (4.4%) and just below those in New Zealand (2.9%). Overall, Australian small businesses are less digitalised than their peers in the UK, in terms of ICT expenditure and app usage intensity.

Technology use linked to greater resilience during the pandemic

The report found a clear link between small business digitalisation and improved performance throughout the pandemic. Australian small businesses in the top quartile (25%) of ICT spend saw AU$34,800 more in sales throughout 2020 than those who spent the least.

Key findings include:

• The top 25 percent of firms saw a sales uplift (relative to 2019) of AU$28,800 in Australia. The bottom 25 percent of firms saw a sales fall of AU$6,000 over the same period.
• Jobs results were slightly higher for the heaviest ICT spenders compared to the lowest quartile (0.1-0.2 employees on average).
• The top quartile of ICT spenders was paid 1.9 days faster in Australia than the bottom 25 percent.

When looking at app usage, Australian small businesses that use apps more frequently had more resilient sales and jobs growth.

• The top quartile of app users saw sales growth of 2.2 percent year-on-year (y/y) in 2020 compared to a decline of 2.2 percent y/y for non-app users.
• The top 25 percent of app users saw job growth of 1 percent y/y in 2020 compared to 0.7 percent y/y for non-app users.

Greater app usage was also linked to increased productivity* across all countries. The top 25 percent of app users were more productive than those who didn’t use any apps in 2019.

“Increased small business technology adoption is clearly a positive for the individual small business. In addition, the impact on productivity growth means it is also a positive for the national economy as we rebuild in 2022,” said Louise Southall, Xero Economist.

Adoption among small businesses still varies

Despite this boost in digitalisation, however, some small businesses have been slow to embrace technology in their business operations. Certain industries and business types are significantly more digitalised, according to ICT spending. Professional services spend almost five times as much (4.9%) on technology as those in hospitality (1.1%). This was followed by other services (2.4%), real estate (2%), retail (1.9%), construction (1.7%), and manufacturing (1.6%).

Meanwhile, sole traders spent a higher proportion of expenses on ICT (5.1%) when compared to larger businesses, almost four times greater than businesses with more than five employees (1.2%). Small businesses with one to five employees spent 2 percent of total expenditure on ICT each month.

While many Australian small businesses are adopting technology at a greater rate, there’s an opportunity for more to see these benefits.

“From these findings, it’s clear how powerful technology can be for small businesses. Tremendous change can happen when a business adopts new tools and systems and uses them to a high degree, as seen with app usage. By overcoming the barriers to adoption, there are huge possibilities – ones that can influence not only the flow of operations but greater resilience. With an economic recovery underway, it’s important small businesses are set up for success, and digitalisation plays a key part,” added Lyons.

To download the Small Business Insights report full report

According to BizCover’s 2022 Small Business Bravery Report, small business owners are divided on Australia’s economic recovery – 38% feel optimistic, and 35% are neutral. However, they do have confidence in their own business growth, with 24% optimistic their business will grow and 38% cautiously optimistic about their business recovery.

Australia’s small businesses have persevered through the uncertainty of 2020-22, and now they face their ultimate challenge: to use all they have learned to fortify their business for recovery and growth. And they might have some new tools at their disposal, thanks to the government’s latest budget announcements.

The Federal Government is probably hoping its budget measures for small businesses might aid in that optimism, with more than $1billion committed in generous tax breaks for “the cost of business expenses and depreciating assets that support digital uptake, up to $100,000 of expenditure per year.”

Small businesses will be able to deduct 120% of digital upgrades, including laptops, portable payment devices, website improvements, and cloud-based software services. Plus, the $550million Skills and Training Boost will also provide a bonus 20% deduction on staff training expenses.

These incentives are designed to boost small business productivity gains, and in turn revenue growth – and potentially help recruit or retain staff. But will they address the fundamental issues keeping small business owners awake at night?

New dragons to be slayed

BizCover’s 2019 survey of small businesses found the number one constraint on growth was lack of customer demand, followed by competitor price pressures and rising overheads. Fast forward two tumultuous years, and it’s hardly surprising that the most pressing challenge in 2022 is ‘external factors out of my control’ – such as future COVID responses or climate change.

As supply chain shocks continue and petrol prices soar through the crisis in Ukraine, the impact of these external pressures keeps evolving. But could the budget help small business owners build resilience to elements they cannot control?

Business tax breaks can’t address these complex global challenges. However, they could potentially relieve some cash flow pressure – a major challenge for 2022 for 17% of small business owners. For the 12% who said, ‘we don’t have a good online or digital presence’, this could finally be the time to invest in marketing platforms and services – with the bonus write off applies to the costs of a new or improved website. And this in turn could also help address the major concern of the 31% of business owners who say it’s hard to find or attract customers or clients.

The ability to subsidise cloud-based software and platforms could also help some businesses better manage compliance and regulation changes – for example, by shifting to online accounting and workflow management systems, they may gain better visibility of their data and simpler reporting.

 And in the face of a well-documented talent shortage, 12% say they have difficulty recruiting and retaining staff, and 12% are concerned about rising wages. Here, the ability to deduct 120% of the cost of training could help upskill current staff or onboard less experienced talent.

Investing in adaptability

The response to the global pandemic certainly accelerated the adoption of new technology – out of sheer necessity. And BizCover’s survey found that small businesses who quickly moved to online solutions were more likely to report their 2021 business performance as good or very good.

But Australia’s small businesses have been lagging their Asia-Pacific counterparts when it comes to digital adoption, according to recent research from CPA Australia. Despite studies, including a 2021 Xero report, consistently find IT investment pays off in increased revenue and profitability – and more time for higher-value work.

“Small businesses have had to become more resilient, agile and innovative to survive the last couple of years, and they will be more prepared to take on new challenges,” says BizCover CEO Michael Gottlieb. “I think we will continue to see more innovation from these businesses as they strive to take on changing market conditions. I also think we will see record growth for new small businesses in Australia.”

As one Queensland-based health services provider told BizCover, “I feel fearlessly brave stepping into a new year with my business, knowing I’m going to grow my clientele and extend on my digital presence. Getting through 2021 was extremely hard with a lack of customers, but this year I know I am going to work harder than before to make sure I can succeed in 2022.”

In January, just 17% of small businesses told BizCover they plan to invest more in online platforms or technology. Perhaps the new budget tax breaks will be a deciding factor, and we’ll see that proportion grow further.

And for those small businesses who supply digital services or external training, there’s even more potential upside – with a further boost in their ability to attract new clients.

To learn more about how Australian business owners plan to recover and grow in 2022, download the 2022 Small Business Bravery Report

The Covid-19 pandemic has given scammers and hackers an advantage. As remote work pushes more Australians online, the jump in cybercrime hits record-high rates sparking major concerns for businesses and families. Savvy’s online scams report reveals the latest figures and what you can do to protect against cyber attacks.

• The top scam types by amount lost are investment scams ($48,845,514) and dating and romance ($8,101,643)
• New South Wales was hit the hardest with online shopping scams, followed by Victoria
• 43% of cyber attacks target small to medium businesses
• Currently, the total amount lost in scams for 2022 is $72,231,217
• 84% spike in scams since last year
• Top industries affected are education, government, healthcare, communications and software vendors
• Smartphones are the primary delivery method for attacks
• The estimated average cost of cybercrime to the global economy is $445 billion yearly
• One in four Australians have fallen victim to identity fraud
• Cybercriminals can penetrate 93% of company networks

We’re living in a digital era where information and data are more valuable than gold and oil. After 2 years of remote working, online vulnerabilities are escalating with cloud breaches, phishing, account takeover attacks and ransomware among the top concerns.

Hybrid and remote work trend ensures another year of online vulnerability

The virus crisis is fuelling the growth in cybercrime as hybrid and remote work rises. Recent data shows Australians have lost more than $72 million in scams, and we’re only three months into 2022. Compared to this time last year that’s an increase of over $10 million in the first quarter.

Working from home and lockdowns have changed the way Australians use the Internet. The reliance on IoT devices, along with virtual classrooms, online communications, work, study and day-to-day life present new opportunities. But they also come with the responsibility to protect data from being accessed by unauthorised parties.

As malicious hackers switch their focus to online work, we must put stronger access controls in place to reduce scams and prepare for the future.

The sharp rise in cybercrime has targeted education, government, healthcare and medical research facilities. Other industries also at stake include business, communications, software vendors, financial and legal services, and real estate.

Now remote work and cloud use have become accepted in the workforce, it’s imperative that the security gaps within the system are addressed.

Small to medium businesses are most at risk

Small to medium businesses typically have less cybersecurity protection making them more vulnerable. 43% of cyber attacks target SME businesses, according to a report from Australian cybersecurity firm Kaine Mathrick Tech. Even more concerning, only 5% of businesses’ data folders are protected.

Businesses of all sizes must have an extensive understanding of where their online threats are most likely to come from, with an action plan on the best way to handle them. Recent research shows that one cybercrime targets Australian businesses every 10 minutes.

Ransomware remains one of the top threats.

In 2022, a ransomware attack occurs every 11 seconds. Last year, the ransomware industry shot up to a whopping $20 billion. A report by Privacy Australia revealed mobile ransomware attacks are also up by 33%.

Phishing, hacking, remote access scams and malware are ongoing concerns too – on and offsite, in the office and at home. Scamwatch data shows the main delivery methods for these attacks are smartphones and email.

The problem is, many SME businesses don’t have the budget for cybersecurity. A quieter than expected economy could be to blame for the lack of spending, making business owners increasingly worried about the emerging threats.

Hackers and scammers are getting more ambitious and bolder in their attempts, targeting online activities to take advantage of people in all occupations and from all walks of life. It’s no longer only necessary to set security measures and forget about them. Preventative actions, multi-layered approaches and regular assessments are key to staying ahead.

The true costs of cybercrime

The cost of cybercrimes is rising with an 84% spike in scams since 2021.

The Center for Strategic and International Studies (CSIS) and McAfee project estimate the economic damage is between $375 billion and $575 billion each year. On average, it’s $445 billion.

According to Scamwatch, the highest scams are investment scams and dating and romance, totalling over $56 million. Followed by false billing ($3.5 million), online shopping scams ($1.8 million) and identity theft ($800k).

New South Wales ($21 million) and Victoria ($16 million) are the states most impacted by online shopping scams, with Queensland ($12 million) and Western Australia ($11 million) not far behind.

Australians aged over 65 reported the greatest losses to scams since January totalling over $17 million. Other age groups most at risk are 25 to 34 and 35 to 44 year olds. Scams and reports by Australians under the age of 18 also increased by over 50%. Women lost more money to scams totalling over $36 million, compared to $35 million lost by men.

Who’s behind data breaches?

The majority of cyber attacks are triggered by insiders, outsiders, business partners, organised crime groups and affiliated groups.

According to a data breach report by Verizon, outsiders are the biggest culprit (70%) followed by organised crime groups (55%) and insiders (30%).

Zero Trust

2022 is the year of deep suspicion.

Zero trust is an approach that shifts people away from the classic, ‘trust but verify’ cybersecurity adage. Over the years it’s evolved to the opposite – ‘never trust, always verify’, reminding people that no one is safe from cybercrime in this digital age.

These safeguards use an initial authentication, under an additional layer of security requiring multiple factors to access.  All users inside and outside of an organisation are required to authorise their access with a zero trust strategy, allowing the least privileged entry.

This approach is critical to:

• Mitigate financial impact
• Reduce the average cost of data breaches
• Prevent identity theft
• Restricts access controls, without compromising performance and user experience

Cyber risk management should be a top priority in 2022

If 2021 has taught us anything, it’s that cybersecurity continues to be one of the biggest challenges of our era.

With the everyday obstacles of Covid-19, cyber risk management has taken a backseat. 2022 will still see many people working remotely making it a top priority for businesses and households to identify, understand and manage security concerns.

How to stay safe from financial scams

As the cost of cybercrime continues to rise, more organisations will need to invest in cybersecurity to protect their in-house and remote teams.

People can expect more attacks on their smartphones, home computers and networks with cybercriminals taking advantage of security holes. The rush to the cloud and increase of IoT devices will also cause challenges. 

Businesses and families can protect themselves by managing their biggest risks and the culprits that make people vulnerable, such as a lack of established protocols and unsecured networks.

Implement prevention-based security solutions in your home, business and on the go. Make sure you:

• Know what devices you have and the vulnerabilities that can be exploited
• Understand what data is regulated, private and sensitive
• Provide comprehensive and current cybersecurity training and education to staff
• Update hardware and software regularly
• Revisit risks and priorities
• Secure all networks
• Use multifactor authentication and control access
• Watch for SMS phishing and lookalike sites
• Check for data leaks with software
• Download carefully

Commonwealth Bank is pleased to partner with the Australian Business Forum (ABF) to present the inaugural SmallBiz-Week – a major business event which will bring together thousands of business owners, government agencies and industry leaders in Melbourne from 17-19 May 2022.

As face-to-face networking returns, new industry data* shows small business owners are planning ahead, with 40 per cent concentrating on growth over the next twelve months. Those industries most focused on growth are Retail (52 per cent), Manufacturing and Agriculture (50 per cent), Transport, Wholesale and Utilities (46 per cent) and Professional Services (40 per cent).

There is renewed optimism in the sector with more than a third of SMEs (35 per cent) believing economic conditions will continue to improve. Over the next three months, nearly half of all SMEs (47 per cent) plan to purchase new office equipment and invest in their businesses more broadly, spending on number of staff employed (24 per cent), capital investment (22 per cent) and marketing (22 per cent).

CBA Group Executive, Business Banking, Mike Vacy-Lyle said it’s pleasing to see renewed confidence in the sector, as small businesses play an important role in the ongoing strength of their local communities and the broader Australian economy.

“CBA is excited to be the Naming Sponsor of this year’s SmallBiz-Week, which will be a significant and meaningful event on the small business calendar. We are looking forward to the energy that comes from having thousands of business owners come together to connect, engage and learn face-to-face.” For the full article visit CBA Newsroom.

Australia’s delivery company CouriersPlease (CP) has analysed its own parcel delivery data and has published the top 10 suburbs for online shopping volumes in 2022, and top 10 suburbs with the fastest growth in online shopping

Parcel delivery volumes are a good barometer of online shopping volumes. CP delivers more than 20 million parcels a year to online shoppers throughout Australia for retailers such as Myer, Target and Forever New. Since early 2020, CP experienced an exponential and continuing growth in parcel volumes. In the 2021 December quarter, CP received 30 per cent more parcels than in the 2020 December quarter.

Chief Transformation Officer Jessica Ip says: “Even with Australia relaxing pandemic restrictions, our own volumes indicate that, for many, online shopping was a behaviour formed during restrictions and will remain. Research shows that in 2021, 68 per cent of Australians shopped online for non-essentials. Even after the pandemic, 50 per cent plan to use online as their main shopping channel, up from 32 per cent pre-pandemic, while 50 per cent intend to shop in-store, down from 68 per cent pre-pandemic.[1]

The top 10 suburbs for online shopping in Australia in 2022

Based on 2021 parcel delivery volumes, Jessica forecasts this year’s top 10 suburbs for online goods purchases. She says: “With Melbourne living through 109 days of lockdown in 2021, it’s no surprise that its suburbs make up eight of the top 10. Even with Melbourne now open, the lingering ripple effect of lockdowns is that residents may be far more conscious of infection risks and are likely to continue shopping online. Melbourne’s suburbs will continue to top the list in 2022.”

1. Melbourne (3000)
2. Truganina (3029)
3. Pakenham (3810)
4. Berwick (3806)
5. Point Cook (3030)
6. Sunbury (3429)
7. Sydney (2000)
8. Adelaide (5000)
9. Reservoir (3073)
10. Frankston (3199)

The 10 Australian suburbs that will see the biggest growth in online shopping

Interestingly, outer Sydney suburbs dominate the 10 highest growth areas for online shopping, where parcel volumes have soared by up to 200 per cent in the last year. CP forecasts that online shopping growth from these suburbs will continue to dominate other suburbs.

1. Clyde North (3978) (200% increase in volumes)
2. North Kellyville (2155) (185% increase)
3. Fountain Gate (3805) (184%)
4. Eastgardens (2036) (146%)
5. Belconnen (2617) (99%)
6. Edmondson Park (2174) (95%)
7. Leppington (2179) (87%)
8. Denham Court (2565) (81%)
9. Gregory Hills (2557) (81%)
10. The Ponds (2769) (79%)

Jessica adds: “The demographics that dominate the list are high-income earners, aspirational, and many of these suburbs have new estates and large houses.”

The weekly household income in suburbs such as North Kellyville, Edmondson Park, Gregory Hills and The Ponds, well exceed Australia’s median household income of $1438.[2]

“Most of the suburbs represented in these rankings are in NSW and Victoria, which experienced restrictions and lockdowns for at least half of 2021.”

[1] Monash University, November 2021 impact.monash.edu/retail/how-covid-19-changed-the-way-we-shop-again/

[2] ABS, 2016 Census data, quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/SSC11383?opendocument

Leading non-bank business lender, ScotPac has welcomed federal budget initiatives that will help small and medium small businesses improve their cash flow, invest in digital upgrades, and attract apprentices and young workers.
ScotPac CEO, Jon Sutton said the reduction in the GDP uplift rate – used to calculate quarterly PAYG instalments and GST instalments – from 10% to 2%, would smooth cash flow for millions of SMEs.
“We know from responses to the ScotPac SME Growth Index that cash flow is a constant concern for most small businesses, so budget measures to help SMEs to manage cash flow are welcomed.
“SMEs will also welcome the 20% bonus tax deduction for spending on digital assets and training. This targets expenditures that can boost capabilities and productivity, such as laptops, cybersecurity upgrades, e-invoicing and cloud computing courses.
“And new wage subsidies for apprentices and young people will help those SMEs in sectors facing skills shortages.
“At a time when the recovery from the COVID-19 pandemic has been stalled by floods, supply chain constraints and rapidly escalating costs, we welcome budget measures to help Australian small businesses bounce back,” he said.

The key budget initiatives for SMEs to note include:

• The 10 per cent GDP uplift rate that applies to PAYG and GST instalments will be reduced to 2 per cent for the 2022/23 financial year (pending support for legislation).
• $1 billion over four years so small businesses can claim 120% of digital assets and training, like the cost of laptops, cloud computing and other services to help them “go digital”.
• $550 million to cover 120% of the cost of any external staff training courses delivered to employees in Australia or online by providers registered in Australia.
• $2.4 billion to boost apprenticeship uptake. Apprentices in high-demand industries will get up to $5000 in cash payments for the first two years of their training, while employers can access a 10% wage subsidy that will drop to 5% in the third year.
• Petrol excise reduction from 44.2 cents per litre to 22.1 cents per litre for six months from 30 March.
• Businesses with annual turnovers of less than $50 million will be allowed to lodge and pay excise and excise-equivalent customs duty on a quarterly basis, from 1 July 2023. Currently, most of these businesses report monthly, with some reporting weekly.
• Real-time PAYG calculations based on financial performance. Companies that report losses or lower than anticipated profits will get an automatic refund of tax paid from 2024.

Mr Sutton said SMEs are currently facing challenges on many fronts and letting small businesses get on with running their business must be a priority for any Government.
“Excessive regulation and compliance is a hand brake on small business and the economy. Some of the budget measures to reduce compliance and red tape are therefore welcome to help small businesses get back on their feet.”
“At ScotPac, we understand the pressures SMEs are currently facing which is why we announced last week the extension of our SME Bounce Back Fund which allows business owners to access up to $1million working capital funding through trade finance and invoice finance with the first three months being interest-free.
“The extension until the end of the financial year of the SME Bounce Back fund is a continuation of our commitment to the SME sector,” Mr Sutton said.

It’s no question that certain industries are struggling to find talent right now in Australia. 

Although this is a real problem, there are real solutions… Over the previous 3 years, in particular, I have found most owners are unwilling to explore them.

This solution could set you miles ahead of your competitors, could give you an ever-flowing stream of candidates at your fingertips whenever you need them, could increase the longevity of your staff, no matter what industry you are in. You probably won’t like this solution because it is hard work… but at least now you have an option you may not have heard of, that could revolutionise the way you hire. 

Solution to struggling to find talent:

The single biggest factor that could break open your hiring role is widening your criteria. And the best, most valuable way to do this is to create a Training Program to upskill candidates and open the role to diversified and transferable skill sets as well as more junior candidates. 

We can’t always expect other companies to be the training ground – that’s just hypocritical. Of course, there are pros and cons, but here is how I see it:

Almost every single company that comes to me, challenged for finding staff, also refuses to train anyone new. “I want someone who is already trained, Marnie.” They tell me. Although I completely understand this, we are now in an age where, as owners, we must take responsibility for training new team members if we are to have any great staff at all. 

The second route is harder, no doubt. But it opens the door to building a team that would cost you much, much less to build, allow you to cultivate the culture you want, and expands your authority in the market. When you take the second route, you can have your choice. You never have to throw money at someone to convince them to join your team and aren’t in the same race your competitors are in. 

Your focus becomes finding people who have proven they can learn and who have transferable skills that the role requires such as communication, attention to detail, customer service, etc. 

If you build your own Training Program and really spend the time really figuring it out, you can have a pool of candidates to choose from at any one time. Spend the 6 months of hard work really nailing your training program and then after that you aren’t at the whim of the candidate market ever again. Take the first route and you are controlled by the market and restricted in your growth. 

Of course, this may be tricky for some roles that require technical experience but try where you can. 

Here are my top tips in creating the ultimate Training Program:

1. It helps to add to all staff contracts that they will be required to upskill their teammates as a part of their role. Share the workload of training. 
2. Define each level of expertise so there is a clear path, and attach bonuses to it. For example, I created a series of Competency Statuses that start from novice and move up into master. I define each status and have an increased bonus at each level. 
3. Build an online course. Don’t get too serious about it, just lay out the key most vital things they would need to know and lay them out in sequence. I have built an online course for my team that can get someone up and running in 2 weeks with absolutely no experience. 
4. When hiring, focus on finding those Overachievers who have gone above and beyond in their roles and Reference Check them so thoroughly that you feel you have a grasp on their true value. Then train them on the rest, incentivize them with bonuses, and they appreciate the role more than anyone else ever would (plus they’re cheaper).

In most cases, the second route of building and integrating training programs is the most rewarding and makes the most sense if you’re working to build a dream team. 

Imagine building such an amazing Training Program, that in the future, if your candidates leave you, your competitors will prioritise potential candidates that come from doing your training. How could this elevate you in your field? Not to mention the positive sentiment and brand awareness you would gain as an employer, with word spreading about how you give employees a chance to grow in their own careers.

Whether you like it or not, the businesses that will make it long term are the ones who begin by taking responsibility for the “experience shortage”, broadening their hiring scope and providing a robust Training Program.

Struggling to find talent speak with specialist talent recruiter Marnie Jones Founder and Director of Talent X.

Poly , today released its Recruit Retain and Grow research which highlights the key benefits and pain points of remote and hybrid working for businesses. The research showed that despite 72% of organisations seeing an increase in productivity as a result of hybrid working, 74% believe that the increase in home working due to the pandemic has made fostering work culture harder than ever.

Poly’s report, Recruit, Retain and Grow, examines how prepared organisations are for the future of work – looking at everything from recruitment and retention to hybrid strategy, workforce and wellness, through the lens of 2,528 global business decision-makers, including 104 decision-makers from Australia.

Key findings from Poly’s new research include:

·        Recruitment and retention are at risk: Over half (56%) of all organisations (53% from Australia) believe that if they don’t address their hybrid work processes and plans, they’ll start to lose staff and will be unable to attract new talent. This was particularly pronounced in the APAC region (60%), compared to 55% in EMEA and 53% in the Americas. Globally, organisations have already felt the effects of this, with 58% seeing a greater turnover in staff since the start of the pandemic. Exiting employees disclosed that the top reasons for leaving are tied to their employer’s approach to hybrid work:

o   Employees discovered better-suited jobs (19%)

o   Employees did not get the desired flexibility of hybrid working (16%)

o   Employees were unhappy about the way employers handled COVID (9%)

Amongst Australian respondents, the key reasons employees left their roles were:

o   They didn’t have enough work/life balance (18%)

o   They wanted more flexibility around any time/hybrid/remote working  (17%)

·        Strategy and equality are misaligned: Less than half (48%) of all organisations (43% in Australia) are fully prepared for agile working, while 37% (38% in Australia) are only prepared in the short-term. A further 52% (49% in Australia) think that hybrid work is a blip. Meanwhile, 24% of the Americas and APAC employers (20% of Australian employers), and 17% of EMEA employers are demanding that their employees return to the office full-time. Other prominent perspectives of employers are:

o   Employees should be given the right to request flexible working from day one (80%) (74% for Australia)

o   Employees are being given rules on the number of days they are required to be in the office (84%) (81% for Australia)

o   38% of organisations (34% in Australia) think it’s fair to cut the wages of employees that opt to work remotely full-time or take a hybrid work approach, with a further 22% (15% in Australia) stating it’s fair to cut wages of remote workers, but not hybrid workers

o   Employees are in offices sporadically, so downsizing spaces is the next step (22%) (25% in Australia)

·        Culture and workforce wellness shortfall is causing productivity lags: 72% of surveyed companies saw an increase in productivity as a result of the shift to hybrid work, with a global average increase of 27%. However, 62%, 61% and 56% of organisations in APAC, EMEA and Americas believe that if employees aren’t in the office, they won’t build the relationships they need to progress their career (however, this figure was far lower amongst Australian organisations at only 21%). Other key concerns included:

o   Employers worry there is an unhealthy culture of overworking (49%) (51% in Australia)

o   Employers aren’t taking steps to prevent people feeling like they need to be always-on (49%) (51% in Australia)

o   Employers are concerned that remote working has made fostering and retaining work culture harder than ever (74%)

Equality, Experience and Evolution to Recruit, Retain and Grow

Poly’s research showed that with so many people now working from home, 65% of organisations (62% in Australia) believe the office is no longer the face of the company, but the technology and experience is. Expanding the quotient of spaces available rather than the definition as to whether the space is virtual, offsite, remote or hybrid, will help employers develop a robust hybrid work strategy.

·        Equalise virtual experiences through meeting equality

Forward-looking companies are investing in software and devices equally with cloud applications and collaboration software at 92% each, and headsets, cameras, and speakerphones at 89%, 86% and 83%, respectively (85%, 86%, and 84%, respectively, for Australia).

·        Equalise office experiences through redesign

77% of companies (68% in Australia) are redesigning their office with more open plan areas, collaboration spaces, quiet zones, and areas to socialise.

“At Poly, we believe that being able to provide hybrid working option is not the endgame, but a starting point for the competitive organisations of today, and our research validates our point of view,” said Bill Zeng, Senior Director, APAC, Poly.

“Employees are voting with their feet in favour of companies that support workspaces with an effective organisational culture for people, and a robust technology enablement approach. Businesses must put an emphasis on achieving work equality – ensuring that those who wish to work away from the central office are not penalised with an inferior experience, and this includes receiving equal remuneration. More than just technology – people and spaces are also critical for any business strategy. This could be the difference between success and failure.” For more information on Poly’s Recruit, Retain and Grow study, please visit: https://www.poly.com/au/

Read Small Business Answers guide to headsets.