Hundreds of South Australian businesses informed us in our Survey of Business Expectations for the June quarter their views on productivity. 57.3% of businesses reported productivity being stagnant in the last 12 months, 27.7% said theirs had decreased and a mere 15% reported productivity improvements. The survey sheds light on this distinction, revealing key practices and challenges faced by each group.
The most common barrier to improving productivity in the survey was budget constraints. With our profitability index languishing at just 76.2 points, the lowest since June 2020, with so many businesses unfortunately struggling financially, they’re not able to invest in the people, equipment, or processes needed to boost productivity.
Businesses reporting declining productivity, broadly, face significant challenges with staff/skills shortages, workplace culture and morale. 46.3% of these businesses with declining productivity listed workplace culture among their top five concerns, compared to just 2.3% of businesses with increased productivity. Culture is king when it comes to productivity.
While just over half of businesses are experiencing staff shortages, 61.5% of businesses with declining productivity are. Those struggling with productivity were far more likely to list award rates and conditions as their main labour market challenge.
Businesses with improved productivity were less likely to experience labour shortages and demonstrated higher levels of staff engagement and cohesion. Their success often stems from a keen focus on efficiency, whether through staffing or technological advancements.
According to our survey results, businesses that have relatively fewer labour issues, are confident navigating the awards system and demonstrate a terrific culture are more likely reap more outputs from their inputs.
These, along with budget constraints mentioned however are significant challenges for businesses and not easily acquired. To address this, we have introduced and launched a recruitment support service designed to reduce the workload and save you time, while being cost-effective.
We will continue to provide support with industrial relations issues and offer numerous training courses to enhance your team’s skills.
Read the full survey report here.
