NSW businesses express varying levels of optimism about business performance in 2010

In a recent survey conducted by HR Help Desk Australia, a division of Benchstrength, business leaders in NSW expressed varied levels of optimism when asked about the outlook for their businesses this year.

One hundred NSW small and mid-sized businesses from a cross section of industries were invited to participate in the online survey, with thirty providing us with feedback. 

Interestingly, approximately one third of those that completed the survey were expecting substantial improvement in their businesses performance, with another third expecting some improvement.  The remaining third were either expecting no change when compared to the past year or expressed a gloomy outlook that this year would actually be tougher.

When asked about top priorities for their business, 79% of respondents were focussed on sales, whilst 50% saw the need to improve processes and systems.  A large number of the sample wanted a better marketing plan and several business owners expressed a need to free up more time for themselves and to get their teams focussed on business goals.

As David Boyd, an expert strategic planner and director of Benchstrength, commented “It was pleasing to see business owners displaying a return to thinking about customers and how to generate more revenue instead of shedding costs as many were forced to do over the past 18 months.  Being in business is about enjoying the satisfaction of success which can only come from making the sales that generate profits.” “Improving systems and a better performing marketing plan is about finding new ways to be more productive and to exploit the opportunities out there in the market.  Tighten up your game, spend wisely, use sharper strategies, focus resources to improve service to your existing customers, and direct your marketing to gain new ones.   In short it’s time to pull out of the defensive mode and exploit weaknesses in the opposition.  It’s time to go on the attack.”

The survey was also interested in business owners’ attitudes towards people issues in the post-GFC climate.   The results indicated that the top ranked priorities were:

1.       Developing and training staff
2.       Putting policies and procedures in place
3.       Developing a performance management system
4.       Finding good staff
5.       Restructuring the team.   

Mr. Boyd commented “developing your team is absolutely critical as the economy picks up .  A key problem for many will be a return to the challenge of keeping and finding good people in a fuller employment economy.  Your best plans are useless unless your people can execute them with precision and this means investing in your people.” 

Individualised training and development programmes to build skills and competencies, policies and procedures which outline the rules and the boundaries, and finally a performance management system which cascades responsibilities are all key to retaining your best people.   You team needs to understand who does what, why and how they contribute and they need to know what behaviour gives the best results for all.    Performance management is a particular problem for many organisations.  Most don’t have good systems to cascade responsibility down to the team and when it comes to holding people accountable many don’t know how to give feedback or don’t follow due process when there are performance issues.  Performance needs to be managed as it is the only way to keep your team focused on your goals. 

The survey also wanted to understand attitudes and action towards the new employment legislation introduced over the past year.  75% of respondents said they were aware of the introduction of the new Fair Work Act but the majority hadn’t done anything about it.   

“Being compliant is not difficult and ignoring the new act leaves businesses exposed.  You only need to see the number of inspections by Fair Work resulting in fines to see the risk.”

Mr Boyd commended those leaders who have made changes to policies, procedures and contracts as well as ensured they are meeting their obligations under relevant awards.  “They will have little to be concerned about when the inspectors come for a visit. These new laws should not be feared but seen as the opportunity to tidy up some lazy processes.  Doing nothing however is not smart.”

“Some are actually assuming the new Fair Work Act doesn’t affect them which is not correct and is a dangerous assumption to be making.  These new laws impact every business in Australia.  One key issue we see frequently are instances of the new performance management processes for small business not being followed and the result is that unfair dismissals are on the rise.” 

Lastly we asked business owners about where they get help and guidance when it comes to HR issues.   Most go to a lawyer, or figure it out for themselves.   Mr. Boyd’s advice is that business leaders should seek professional HR guidance.  “Just as you would go to your lawyer with a legal problem or your accountant with a tax issue, you should be enlisting support from a qualified HR professional when you have people challenges.  Also doing it yourself unless you have the detailed knowledge to get it done, can be a very unwise use of your time.  There are other priorities like more sales, better marketing, improved systems and well trained people.”