Retaining and attracting staff is the biggest issue for private businesses today. Why is this so difficult? What are the challenges facing private businesses and how can they be overcome? We’ve done the research and talked to private businesses to review these challenges and explore the possible solutions for businesses. Here’s what they said. Have your say at www.whatwouldyouliketogrow.com.au

1. What can private
businesses do to
attract and retain
talent?
www.privatebusinessbarometer.com.au

2. PwC 2
November 2010
About the Private Business Barometer
The PwC Private Business Barometer is a national, independent survey
of more than 1000 Australian private businesses with an annual
turnover of between A$10 and $100 million.
Released twice a year, research for the current edition was undertaken
by Roy Morgan.
The Private Business Barometer explores four key areas of importance
for businesses: growth, funding, people and operations as well as topical
issues of the day.

3. PwC 3
November 2010
Human, not financial capital, is the key to
business growth…
Private Business Barometer VIII

4. PwC 4
November 2010
Retaining and attracting staff is the biggest issue for
private businesses today. Why is this so difficult?
What are the challenges facing private businesses and
how can they be overcome?
Private Business Barometer VIII
We’ve done the research and talked to private
businesses to review these challenges and explore
the possible solutions for businesses.
Here’s what they said…

5. PwC 5
November 2010
What are the
challenges?

6. PwC
“SMEs don’t have the luxury of retaining staff
that don’t perform.”
“Bigger businesses tend to be able to retain staff
and coach under-performers to enhance their
contribution.”
“You can’t hide the lack of skill, productivity
and efficiency in a small to medium business
that a non-performer brings.”
6
November 2010
Performance is key

7. PwC
Money talks
November 2010
7
47%
“It’s not unrealistic for staff to jump ship for
what appears to be a better offer and a
remuneration package at big business rates.”
“Big salaries in small businesses are hard to
sustain.”

8. PwC
Is this as good as it gets?
8
November 2010
“The industry standards for staff in some sectors
are low and SMEs are forced to keep on under-
performing staff simply because there is a talent
shortage.”
“Certain geographic regions like Darwin and the
ACT have very low unemployment rates and
compete with Government agencies which, in
unstable economic times, provide a safe haven that
appeals to candidates.”

9. PwC 9
November 2010
How has the
economy impacted
the situation?

10. PwC
What impact has the GFC had?
“Candidates are nervous and security has become
more important.”
10
November 2010
“This means candidates are less likely to move, so
attracting them is more difficult, so private
business are adopting more creative ways to
attract talent.”
“Candidates perceive SMEs as the less stable option
which makes them more of an uncertain bet.”

11. PwC 11
November 2010
Correspondingly however…
“During the GFC larger companies also became less
stable.”
“Where SMEs might make a cut or two to staff and
tend to operate much more leanly, bigger companies
cut entire departments.”

12. PwC
What strategies can
you use to retain
staff and remain
competitive?
12
November 2010

13. PwC
Shout about what you’re
doing well
November 2010
47%
“If you pay above market rate, make it
known.”
13
47%
“Small to medium businesses tend to be more
flexible. Offer flexi-time where possible and
remember to think mobile – in most
instances staff can work from anywhere given
the right tools.”

14. PwC
14
November 2010
“SMEs can often offer much more challenging
opportunities for candidates through
increased exposure to the entire business, not
just one area. Allowing candidates to
develop a broader skill set, and deeper
connections with the business.”

15. PwC
Invest in staff and you’ll
benefit too
Business coaches grow your Talent and your business at the
same time.
Make sure you’re in tune with where staff place value. You
may be spending dollars in the wrong place.
Bring people in and train from the ground up. It’s cheaper and
they’re likely to be more loyal to your organisation.
15
November 2010

16. PwC 16
November 2010
Let staff invest in you
“Equity is an enormous attraction for candidates and
in equal parts is a reason to stay.”
“Staff who have a vested financial interest in a
business stay longer, work harder and are naturally
more loyal.”

17. PwC
Create an Employee Value Proposition
that works internally and externally
November 2010
“Keep your external offering one that people
are proud to be part of and aspire to work
for.”
17
47%
“Create a synergy between your brand and your
employer brand, this will make you more
credible in a cluttered market.”

18. PwC
Don’t forget to give
back
18
November 2010

19. PwC
Charity begins at home
November 2010
47%
“Don’t underestimate the power of good will.
Rather than buy tickets to charity balls, send
your staff on trips to get involved and help out
the charities you support.”
19
47%47%“They’ll get more out of it and see value in
your business beyond commercial
motivation.”

20. PwC
Reward and recognition
“Short changing your staff is counter
productive in the long run.”
“Provide clear career paths and
opportunities.”
“Reward a job well done and praise when
appropriate. Salary is less important when
staff are satisfied and acknowledged.”
20
November 2010

21. PwC
Change needn’t be
negative
21
November 2010

22. PwC November 2010
“Don’t burn bridges. Sometimes candidates
need to move on so you can both grow.”
22
47%
“Keep a dialogue with staff that leave. Set up a
social media Alumni Group and keep it active.
Keep track of good candidates and keep them
informed of your changes and growth as a
business. They may just come back.”

23. PwC
Use a departure to understand your
business better
Conduct an exit interview. Get as much information on what was good,
bad and ugly about your business as you can so you can learn from it.
Review the situation before you hire someone else.
• Is the business structured correctly?
• Has the market moved on?
• Have the skills you need in your next hire in a particular role
changed?
• Is there someone internally who could be promoted to fill the
position?
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November 2010

24. PwC 24
November 2010
www.privatebusinessbarometer.com.au
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