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Almost one quarter of SMEs intend to give employees a pay rise this year, despite concerns they will struggle to attract new customers, according to the most recent MYOB Business Monitor quarterly survey.
SMEs flag pay rises despite customer growth concerns
23 March 2015
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6 minute read
The survey of more than 1,000 SME owners revealed 32 per cent believe attracting new customers is quite likely or extremely likely to put pressure on their businesses over the next 12 months, while a further 35 per cent said it is likely to cause some pressure.
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Despite this, 23 per cent of respondents said they expect to increase wages in the next 12 months.
Tim Reed, MYOB chief executive, said these results are encouraging considering the challenging conditions Australian businesses have been facing in recent months.
“The planned salary increases and the intention to grow staff numbers demonstrates the resilience of the nation’s SMEs," he said.
Their optimism to work through uncertainty and plans for future growth is encouraging and reflects the spirit and determination of small and medium [sized] businesses in Australia,” said Mr Reed.
In addition to attracting new customers, the other key concerns that SMEs reported were:
· Competitor activity – 34 per cent
· Meeting tax obligations – 31 per cent
· Cash flow – 30 per cent
· Price margins and profitability – 28 per cent
· Retaining customers – 25 per cent
“The latest Business Monitor results show that concerns around competitors, cash flow and price margins continue to keep SMEs up at night,” said Mr Reed.
“To address these concerns it’s more important than ever for small and medium [sized] business owners to put in place robust business systems that provide them with clear visibility on how their business is performing.
"It’s also critical for business owners to ensure timely payment of accounts so they have the funds to invest back in the company," Mr Reed said.
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