Pay rise on cards for more SME staff

Almost a quarter of small businesses plan on giving staff a pay rise in 2015, and 12 per cent plan to hire more workers.

If you work for a small business, you'll have a greater chance of getting a raise this year, new research shows.

A national survey of more than 1,000 small businesses has found nearly a quarter of owners plan on giving staff a pay rise in 2015.

The MYOB poll also found 12 per cent of small businesses are looking to expand their full-time employment base, while 17 per cent expect an increase in the part-time or casual payroll.

MYOB chief executive Tim Reed says the number of small businesses planning to increase wages this year has risen and was particularly encouraging, given the uncertain political climate and drop in consumer and business confidence.

"Year-on-year it's an increase of about 10 per cent, so two or three percentage points," he said.

Mr Reed said some small business owners were taking advantage of a fall in inflation to pay their staff more.

"They're now feeling like their costs are under control, enabling them to invest further in people and shifting focus to growing revenue lines," he said.

Mr Reed noted particular optimism from younger business owners.

Some 41 per cent of generation Y bosses anticipate the economy to improve within a year, while more than half of overall businesses expect an economic upswing to take more than 12 months to kick in.

Similarly, 45 per cent of younger owners reported more work or sales were in the pipeline compared to a national average of 36 per cent.

Mr Reed said older owners can learn from the confidence of young bucks and the strategies they use.

"They're embracing new technology - attracting and engaging with customers online through their websites, blogs and social media," he said.

More broadly, concerns around competitors, cash flow and price margins continue to keep small business owners up at night, while fuel prices are no longer their primary worry.


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Source: AAP


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