Category Archives: Business Research

Business Research, Leadership

Research Reveals Around Half of Young Managers are ‘Directionless’ at UK Organisations

  • Young managers (under 35 years) don’t have clarity of organisational goals

  • Yet, 59% of organisations expect managers to take responsibility for developing their teams

  • Managers’ desire to know organisational priorities lowers as they become more mature; 37% of managers over 55 years old feel directionless

Just 53% of young managers have clarity on how they support organisational goals, according to the ‘Building Better Managers’ research by Mind Tools.

Conducted in partnership with YouGov, the research surveyed 2,001 managers across 12 industries to identify the critical foundational skills and capabilities needed to be a ‘good manager’ in a modern business context.

It highlighted that one of the top three requests from managers is to know what their organisation thinks they should be focusing on. Yet, according to Mind Tools, organisations either have too broad of expectations for managers or aren’t being transparent about what managers should be prioritising. The problem is exacerbated by context and different sectors needing different skills.

 

Interestingly, managers’ desire to know organisational priorities lowers as they become more mature, with only 37% of managers over 55 years old feeling directionless.

In addition, the longer managers stay in their role, the less they want to find out about their own strengths and weaknesses – 39% of managers of over five years think this compared to 51% of young managers with a tenure of less than a year.

 

Nahdia Khan, Chief Impact Officer at Mind Tools, said: “Managers are expected to lead others while showing vulnerability to those they answer to. They have to support decisions they didn’t make, translate organisational goals into actions, identify meaningful opportunities for people to develop, remember to acknowledge successes, regulate their emotions, and resolve team conflicts.

“Yet, lack of training for all managers remains an issue. When senior managers haven’t received adequate training on how to set priorities and align them with company goals, the younger managers working for them end up feeling lost and lacking direction. With 59% of managers relying on their line managers to solve problems at work, bad habits can quickly get passed down through the organisation, fuelling confusion and loss of productivity.”

 

The research further highlighted the importance of L&D for younger managers. Indeed, 80% of managers are willing to leave if they are not provided with learning opportunities. Yet, less than half of young managers (44%) ranked ‘guidance’ as one of the most important manager capabilities in 2024, showing that managers’ enthusiasm for L&D fails to translate to the people they manage.

Nahdia Khan added: “Without direction, L&D strategy within organisations also becomes impacted: 59% of organisations expect managers to take responsibility for developing the skills of their people. In addition, the younger generation cares the most about learning and development. Organisations need to take this very seriously, considering they are the ones who will define the future of workplace management.”

“With experience, managers develop a better understanding of what they’re good at. But only by a factor of 1.12 after five or more years in the role. Experience is important, but it’s not everything. It is, therefore, necessary for organisations to identify reliable ways to measure and track management capabilities across a manager’s full career,” concludes Nahdia.

 

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About Mind Tools

Mind Tools brings accessible, on-demand leadership and management skills development tools and resources that empower current and future leaders to perform in today’s progressive workplaces. Helping them build happy and successful careers and to contribute positively to the success of organisations, the world over. At Mind Tools, empowering people to thrive at work has been our passion since 1996.

Business Research, Logistics, News

How Port of Dover and Eurostar turned to Operational Research to improve logistics

Written by Professor Jesse O’Hanley, Associate Dean of Research & Innovation and Professor of Operational Research, Kathy Kotiadis at the University of Kent Business School

Operational Research (OR) is a powerful yet often overlooked tool in business decision-making for devising solutions to complex problems in a wide range of industries.

One significant industry is logistics, where it can benefit airlines, freight companies, and transport firms for example, OR tools and techniques were used by The University of Kent to solve major logistical challenges for the Port of Dover and Eurostar.

The University of Kent was awarded these projects through a Knowledge Transfer Partnership (KTPs)[i], part-funded by the partnering organisations and Innovate UK, the UK’s national innovation funding body.

Case study: Port of Dover

The challenge

The Port of Dover is one of the world’s busiest ferry ports and managing the high volume of traffic passing through its Eastern Docks is its most significant challenge.

Three ferry companies (DFDS, P&O Ferries and Irish Ferries) make up to 65 round trips a day to the French ports of Calais and Dunkerque, carrying 2.2 million lorries (enough to circumnavigate the globe), 1.6 million cars, and 9 million people a year. The economic value of the goods managed through the Port is £144bn or around 33% of the UK’s overall trade in goods with the EU, the UK’s biggest and nearest trading partner. Freight traffic grew by 8% and tourist vehicle numbers by 26% respectively compared to 2022, showing that Dover remains the port of choice post-Brexit and Covid.

However, Dover’s eastern docks ferry terminal is small, around half a square kilometre, and expansion is challenging since it is hemmed in by the sea, the White Cliffs of Dover, and Dover town.

Vehicles must navigate multiple checkpoints before boarding ferries, and any system disruption can cause severe traffic congestion, affecting the town of Dover and potentially necessitating the activation of Operation Brock[ii].

The Solution

The Port of Dover collaborated with Professor O’Hanley and his team of operational researchers, including KTP Associate Cliff Preston, to model traffic flows and determine how the Port could manage future volumes of traffic based by identifying potential bottlenecks and evaluating a range of options and recommend future investments to alleviate problems.

A key challenge was managing the order and efficiency of several checkpoints for vehicles, including customs and checking-in. However, using simulation modelling, the team presented solutions to improve traffic flow.

The first model looked at the current operations. Using rich data collected by the Port, including excellent historical data on ferry schedules, vehicle/passenger carryings, and arrival rates for different traffic types, they were able to model the operations, which provided several insights.

Firstly, it highlighted the Port’s physical infrastructure can handle current traffic volumes well and that excess queues are typically caused by technical issues (e.g., IT problems or staff shortages), not capacity limits.

Secondly, having a buffer zone is crucial for managing different traffic types and ferry operators and enhancing resilience against system problems. This contrasts with the assembly area, an area where vehicles wait after check-in but before embarkation onto ferries, which cannot mitigate issues at border controls or check-ins.

The next step was to consider future traffic volumes through three forecast scenarios: expected, optimistic, and pessimistic. This modelling pinpointed future pinch-points and identified the optimal use of two areas for operational space.

The key performance measure was ‘TAPs per year’— the frequency the Port’s capacity is exceeded, impacting the Port, its customers, and the local community. Triggering of the Dover Traffic Access Protocol (TAP) is designed to alleviate traffic congestion in front of the town’s seafront by allowing freight vehicles (and only freight) to be held on the A20 approach using a traffic light system.

The Impact

The project delivered several positive impacts. It saved the Port time, money and resources, and facilitated dialogue with government agencies. It also highlighted simple principles to be applied in future circumstances.

One is the value of flexibility. Given the variability in traffic flows (transient over a day, week, or season) no one fixed configuration of the Port’s hard infrastructure could be optimal all the time. Any investments that increase flexibility, such as using temporary or relocatable structures, is especially useful.

Conversely, investments which reduce flexibility may not adapt well to changing traffic patterns and demands, potentially leading to inefficiencies and increased congestion.

Modelling has also enabled the Port to evaluate plans more effectively, distinguishing between its ‘anatomy’ (physical infrastructure) and its ‘physiology’ (operational processes). More specifically, it is preferable, where feasible, to adapt performance by changing behaviours through incentives, nudges, and other methods, rather than relying solely on alterations to the physical infrastructure.

Finally, as Professor O’Hanley noted, the project highlights the importance of OR modelling to support future planning. The Port is a dynamic system influenced by external factors (e.g. road conditions, weather, economics, and socio-political events) and it relies on highly skilled and experienced staff to manage the system. Forecasting and analytics plays a significant role in supporting real-time, evidence-based decision-making of Port staff.

Professor O’Hanley and his team worked on subsequent OR projects for the Port of Dover, including solving a central warehouse issue where the Port was going to invest in an expensive system to organise cargo. OR modelling enabled the team to put forward a simple solution – making the loading bay a few metres longer so forklifts could be used to move cargo around. This helped the Port avoid a major cost investment and again demonstrates how OR can bring value to a business.

Improving the customer experience at Eurostar

The team at Kent Business school has also worked on a project for Eurostar.

The Challenge

Since Eurostar started operating in 1994, its success has brought its own set of challenges. As an international service, passengers are required to pass through security screening and border controls before boarding trains. These checks can become a bottleneck for passengers, occasionally resulting in long queues.

Terminal throughput, in turn, has constrained the number of services that can be operated and the number of tickets that can be sold. Also, scheduling of rolling stock to carry upwards of eleven million passengers per year is no easy task. Travelling at 300km per hour back and forth to Europe each day invariably causes wear and tear on trains, which necessitates that they undergo regular maintenance.

Operating across several countries and sharing infrastructure with multiple other operators while managing planned and unforeseen maintenance and coping with daily events that cause disruption to the schedule, Eurostar has the complex challenge of ensuring trains are in the stations and ready to depart on time. This requires extensive and holistic forward planning on Eurostar’s part and the design of flexible operating procedures that can adapt to ever-changing conditions.

The Solution

Working under another KTP partnership, Professor O’Hanley, Professor Kotiadis, and KTP Associate Will Jones were tasked with adding new simulation and analytics capabilities to Eurostar’s planning framework to help tackle key strategic and operational business challenges. As well as a model to run and assess different scenarios, they undertook a simulation modelling study that provided other ancillary benefits.

Working with key stakeholders to develop a model required the group to agree and articulate their understanding of the impact of certain actions on the system. This logic can then be tested in the simulation and perceived wisdom challenged, leading to revised understanding.

In addition, the process requires a thorough exploration of available data. This can highlight gaps that need addressing by new data collection programmes and form the basis for improved monitoring of an organisation’s performance.

The Impact

For Eurostar, the simulation study has provided a sound and objective evidence base for decision making in situations where the best choice is not obvious. Professor O’Hanley added as Eurostar continues to grow, simulation and other analytic techniques will play a key role in ensuring decisions are based on the best available information. This will help ensure the smooth flow of passengers through stations, confident that they will cross the channel as scheduled, and ensuring the Eurostar brand remains strong as the enthusiasm for fast, efficient, low carbon travel continues.

These projects highlight how OR can deliver invaluable insights and solutions for businesses, particularly in logistics and transport. Through OR, businesses can improve their operations, manage resources more effectively, and make informed decisions that enhance overall efficiency, performance and the customer experience.

 

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[i] https://www.ktp-uk.org/

[ii] https://www.freightlink.co.uk/knowledge/articles/operation-stack-important-information-and-explanation

Business, Business & Property News, Business Research, News

New Survey Reveals the Unacknowledged Issue Worrying Most Businesses

(London, United Kingdom), Wednesday 1st May 2024: Reputation management is one of the biggest issues concerning businesses, according to research released today. New statistics show that most businesses are more worried about reputational damage than a host of other serious issues.

The nationwide survey, commissioned by Speakers Corner, drew responses from 500 business owners and directors with at least 20% equity, for companies with at least 100 employees.

Surprisingly, more than half the business owners and directors surveyed say reputational damage worries them more[1] than other concerns including falling profits, high staff turnover, high inflation, the cost of living impact on their staff or rising energy costs. In addition, 50% say they are more concerned1 about reputational damage than the potential of a recession, the possibility of going back into lockdown or the green agenda including net zero targets.2

“The results of this survey are a clear indication that reputation management is a critical issue for most businesses – and it’s never been more challenging,” comments Nick Gold, Managing Director of Speakers Corner, the UK’s leading speaker bureau. “Alongside delivering value to shareholders and stakeholders, businesses are also expected to lead the way in corporate social responsibility and ethical practices, as well as having a positive impact on their communities. Any perceived wrongdoing or controversy can have serious repercussions, and this is obviously a huge concern for most businesses.”

Almost 9 in 10 (88%) business owners and directors surveyed said reputation management is more of a priority[2] for their business than training employees and 86% said it was more of a priority2 for them than sustainability.

 

The threat of reputational damage is coming from a variety of issues. 23% of directors/business owners surveyed see financial issues as the reputation issue most damaging to their business, while 16% cite toxic business culture/bullying as the most damaging reputation issue; 16% name data breach issues as the reputation issue that could be most harmful and 11% list environmental concerns as the issue likely to cause most damage to their reputation.

In today’s interconnected world a single negative incident or comment can spread rapidly, potentially causing significant harm to a reputation, making it an increasingly pressing issue for UK businesses.

The top five impacts experienced by the directors and owners surveyed in managing reputation issues are:

  1. Low staff morale (28%)
  2. Staff left (27%)
  3. Negatively impacted profits (26%)
  4. Negative impact on culture / weakened value proposition (24%)
  5. Investment withdrawn (22%)

 

The stress of reputation management may not be one of the topics making headlines – for example a potential recession or high energy costs are. But these survey results highlight how huge this worry is for the majority of business owners and directors.

Concern over protecting their business from reputational damage is one of the biggest issues most businesses currently face.

 

[1] ‘Reputational damage concerns me much more’ and ‘Reputational damage concerns me somewhat more’ answers combined.

2 See notes to editors for a further breakdown of data as illustrated in the infographic.

[2] ‘Reputation management is significantly more of a priority’ and ‘Reputation management is somewhat more of a priority’ answers combined.

Business & Property News, Business Advice, Business Research, News, Research

Unlocking your business potential with the power of Operational Research

Written By Seb Hargreaves, executive director of The OR Society

In today’s rapidly evolving business landscape, one hidden gem is Operational Research (OR) – an innovative solution that is driving competitiveness and relevance for businesses.

Often termed ‘the art and science of decision making,’ OR combines advanced mathematics, data analytics, and human insights to tackle intricate business challenges.

Originating from World War II, OR’s roots trace back to scientists and engineers innovating strategies that optimised military operations. Analysing data, mapping processes, simulating scenarios, and planning optimal routes became pivotal in minimising military losses and ensuring mission success.

Today, executives across a diverse range of organisations – large, small, public, private, or non-profit – are using OR to extract value from data, model intricate systems, and make better decisions with reduced risks.

OR’s Impact on Business Transformation

Imagine an OR specialist collaborating with a logistics company, optimising delivery routes considering variables like traffic, fuel costs, and delivery deadlines or  a retailer using OR to analyse sales data, precisely predicting stock needs while balancing customer demand and inventory expenses.

Consider Pilkington UK, a glass manufacturer, which employed OR to streamline manufacturing and reduce glass waste. By harnessing OR techniques to review order data, the company redefined its manufacturing processes to align with specific customer orders, minimising waste, cutting costs, and enhancing their customers’ satisfaction.

Another example is Tesco, the UK’s largest grocer, that has used OR solutions to meet the daily challenge of managing the expiring stock of both food and non-food items.  A key step in Tesco’s value chain is what happens at the end of a product’s lifecycle. This is the last opportunity to sell an item to a customer or donate it to the community to ensure it doesn’t go to waste.

Tesco, like most retailers, discounts items that are close to being removed from the shelves.  This process is applied across Tesco’s product range, from general merchandise and clothing to fresh food. In particular, food items are reduced in price as they get closer to expiry to sell them before they go to waste.

Finding an optimal reduction strategy is a major challenge for every retail business. The question that must be answered is: By how much should the price be reduced?

There are two conflicting objectives:  to not only increase revenue but also reduce waste. Finding a solution that achieves both is a non-trivial task, but it’s what Tesco’s Data Science Team managed to do using OR.

They developed a novel multi-stage Clearance Pricing Optimisation system and deployed it across all Tesco stores in the UK where it is applied to 100,000’s of unique products annually.

The key objectives are to: 1) clear excess stock by a specific date; 2) increase revenue by finding the optimal discounts, and 3) reduce operational costs and provide further insights of in-store processes.

The solution achieved these objectives and has been a great success. Tesco has reduced the number of fresh food items going to waste by 5% and its impact on the planet, whilst at the same time increased the revenue generated by 1.5-13% across multiple food and non-food product lines.

Tesco were also delighted to be awarded the OR Society’s President’s Medal in 2022 for this work.

Like these examples, almost any organisation can use OR to solve complex problems, make cost savings, and improve decision-making. For businesses yet to explore this powerful tool, discovering its potential could be a real game changer.

By Seb Hargreaves, executive director of The OR Society

In today’s rapidly evolving business landscape, one hidden gem is Operational Research (OR) – an innovative solution that is driving competitiveness and relevance for businesses.

Often termed ‘the art and science of decision making,’ OR combines advanced mathematics, data analytics, and human insights to tackle intricate business challenges.

Originating from World War II, OR’s roots trace back to scientists and engineers innovating strategies that optimised military operations. Analysing data, mapping processes, simulating scenarios, and planning optimal routes became pivotal in minimising military losses and ensuring mission success.

Today, executives across a diverse range of organisations – large, small, public, private, or non-profit – are using OR to extract value from data, model intricate systems, and make better decisions with reduced risks.

OR’s Impact on Business Transformation

Imagine an OR specialist collaborating with a logistics company, optimising delivery routes considering variables like traffic, fuel costs, and delivery deadlines or  a retailer using OR to analyse sales data, precisely predicting stock needs while balancing customer demand and inventory expenses.

Consider Pilkington UK, a glass manufacturer, which employed OR to streamline manufacturing and reduce glass waste. By harnessing OR techniques to review order data, the company redefined its manufacturing processes to align with specific customer orders, minimising waste, cutting costs, and enhancing their customers’ satisfaction.

Another example is Tesco, the UK’s largest grocer, that has used OR solutions to meet the daily challenge of managing the expiring stock of both food and non-food items.  A key step in Tesco’s value chain is what happens at the end of a product’s lifecycle. This is the last opportunity to sell an item to a customer or donate it to the community to ensure it doesn’t go to waste.

Tesco, like most retailers, discounts items that are close to being removed from the shelves.  This process is applied across Tesco’s product range, from general merchandise and clothing to fresh food. In particular, food items are reduced in price as they get closer to expiry to sell them before they go to waste.

Finding an optimal reduction strategy is a major challenge for every retail business. The question that must be answered is: By how much should the price be reduced?

There are two conflicting objectives:  to not only increase revenue but also reduce waste. Finding a solution that achieves both is a non-trivial task, but it’s what Tesco’s Data Science Team managed to do using OR.

They developed a novel multi-stage Clearance Pricing Optimisation system and deployed it across all Tesco stores in the UK where it is applied to 100,000’s of unique products annually.

The key objectives are to: 1) clear excess stock by a specific date; 2) increase revenue by finding the optimal discounts, and 3) reduce operational costs and provide further insights of in-store processes.

The solution achieved these objectives and has been a great success. Tesco has reduced the number of fresh food items going to waste by 5% and its impact on the planet, whilst at the same time increased the revenue generated by 1.5-13% across multiple food and non-food product lines.

Tesco were also delighted to be awarded the OR Society’s President’s Medal in 2022 for this work.

Like these examples, almost any organisation can use OR to solve complex problems, make cost savings, and improve decision-making. For businesses yet to explore this powerful tool, discovering its potential could be a real game changer.

 

Business & Property News, Business Advice, Business Research, News, Sales

Majority of Businesses Falling Short on Sales Targets Seek Improved Forecasting

Businesses rely heavily on accurate sales forecasting to align with projections effectively. However, recent data from revenue intelligence experts Gong sheds light on the hurdles companies encounter in this area. Over the past two years, nearly 80 percent of UK companies have failed to meet their sales forecasts for at least one quarter, largely due to the use of outdated technology and practices in projection development.

A study conducted in 2022 by the Social Science Research Network revealed that public companies’ earnings guidance is inaccurate approximately 70 percent of the time. This trend indicates that the challenge of forecasting extends beyond private companies to publicly traded ones as well. In both spheres, missed forecasts can undermine stakeholders’ confidence, signaling a lack of grasp on business dynamics and market trends. Implementing advanced forecasting tools, including artificial intelligence (AI), can enhance the precision of these forecasts.

Inaccurate forecasting adversely impacts companies and their employees, resulting in pay freezes, deferred promotions, and halted hiring processes.

Despite these setbacks, businesses remain optimistic about the coming year, with 70% planning to increase revenue projections. When surveyed about the primary obstacle to accurate forecasting, one-third cited outdated technology.

Amit Bendov, CEO, and co-founder of Gong, emphasized the obsolescence of traditional forecasting methods, saying, “The era of revenue leaders relying on spreadsheets and subjective data to predict sales is over.” He highlighted AI’s role in revolutionizing forecasting by incorporating customer feedback and assessing deal health, thus empowering leaders to make informed strategic decisions.

Encouragingly, businesses acknowledge the shortcomings of current forecasting approaches and are taking steps to address them. Thirty-four percent of respondents reported planning to alter their forecasting methods for the upcoming year, while 64 percent are exploring or have already invested in advanced forecasting technologies and systems.

Work marketplace Upwork is one company that has increased its forecasting accuracy as it has grown, with its community of independent talent earning more than $3.8 billion in 2022 across more than 10,000 skills.

“At Upwork, our sales forecasting process wasn’t providing the level of precision we needed as we entered a period of organizational change and growth amid an uncertain economy,” said Drew Korab, director of sales operations at Upwork.

“We implemented a new, AI-powered solution that gives us the data, process, and insights to more accurately predict how our Enterprise business will perform in new logo acquisition. In the first three quarters we’ve used this solution, we reached 95 percent forecast accuracy, allowing us to deliver a stronger sense of confidence to our stakeholders.”

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The study surveyed 1,000 business leaders at privately held companies in the UK in January 2024.

 

Business, Business News, Business Research

Welsh businesses optimistic despite investment and trade challenges

Businesses in Wales remain optimistic despite trade challenges and a continued hesitancy to invest in both equipment and training, according to Chambers Wales South East, South West and Mid’s latest Quarterly Economic Survey.

In Q4 of 2023, half of Welsh businesses stated that they believe that turnover will improve over the next 12 months while 42% predicted that profitability would improve, a small rise of 2% since the previous quarter.

However, investment and trade challenges persist, affecting business plans for long-term growth.

Over the last quarter, only 23% of businesses in Wales increased their investment in plant and machinery or equipment and 16% increased their investment in training. Just over half of Welsh businesses (52%) did not change their investment plans for plant and machinery or equipment and 66% did not change their investment plans for training in Q4 of 2023.

While trade fared slightly better in Q4 than Q3 of 2023, businesses in Wales have seen decreases in sales and orders both domestically and internationally. UK sales and advance orders both fell by 35% in Q4, while export sales and advance orders to overseas markets each decreased by 44%. Almost three quarters of businesses in Wales identified new markets as an opportunity for their business to recover.

Paul Butterworth, CEO of Chambers Wales South East, South West and Mid, said: “Our latest Quarterly Economic Survey results show a small rise in business confidence and optimism in Q4; the shoots of confidence and growth are starting to appear as we begin the new year.

“However, the results also demonstrate the low growth economic climate businesses in Wales are currently operating in, as firms continue to report minimal movement in investment plans, skills development and trade.

“Building on the growth measures announced in the Autumn Statement, businesses will be looking to the Spring Statement in March for further assistance and, with a general election likely to happen this year, it is vital that a stable economy and long-term growth support is prioritised by policymakers.”

Business Research, News

Managers who can multi-task are key to cooperation between rival firms

For rival companies to successfully cooperate in the name of innovation, they need “ambidextrous” managers who can make the most of their pooled resources, research from NEOMA Business School reveals.

Antony Paulraj, Professor of Operations and Supply Chain Management at NEOMA, co-authored a study analysing the approach of over 300 companies that are collaborating with their competitors, known as “coopetition”.

According to Paulraj, coopetition broadens the possibilities of what can be achieved by any one company in isolation. To optimise the potential for innovation, he says, requires ambidextrous management.

In a management context, the term ambidextrous means handling two tasks simultaneously – i.e. an exceptionally high competency at multi-tasking. Firstly, managers must utilise pooled resources at both companies as effectively as possible; secondly, they must simultaneously explore new horizons through training staff and creating new products or processes.

“Ambidextrous management is invaluable to successful coopetition, as managers have access to a wider range of resources and opportunities. Our analysis demonstrates that ambidextrous management is essential for ambidextrous innovation – which involves both the improvement of existing products and services, and the invention of new ones,” says Paulraj.

Successful ambidextrous management directs joint investment to areas that will benefit both companies, such as building factories together or training partner teams to create more opportunities for innovation.

These managers can also facilitate more effective dialogue between partners where there is a reluctance to share skills and investment, helping to develop a joint vision for both firms.

“Coopetition involves risk and uncertainty, which can be mitigated by ambidextrous managers. It has become a tactic that is not just reserved for industrial heavyweights – smaller companies and even SMEs now look to it as a way to foster innovation,” says Paulraj.

Business, Business Research, News

Financial concerns plague over 70% of businesses globally with almost a third of businesses just hoping to survive the year

According to a new survey, 72.3% of bosses list rising costs as their top business concern.

Peninsula Group conducted a survey of 79,000 businesses across four countries – Australia, Canada, Ireland, and the UK – to see what the top priorities and concerns were for employers in 2023.

Most employers chasing growth despite recession

Growth is the main business goal for 58.6% of employers in all countries surveyed, but we can see the impact the recession is having in the UK and Ireland with 38.4% and 34.7% respectively listing survival as their main goal for the year.

Rising costs are the top concern for businesses in Canada (73%), Ireland (87.8%) and the UK (79.9%), whereas in Australia it places third. Labour shortages are the top concern for 66.2% of Australian businesses, with employee retention the second highest concern.

66% of employers offering financial renumeration to help with retention

The cost-of-living crisis and staffing shortages are having a significant impact across all four countries, with 66% of employers offering financial remuneration to help retention.

Those who are unable to offer financial incentives are offering flexible working hours (50.9%) and mental health support (30.7%) to help prevent employees leaving.

54.6% of employers have given employees a pay rise to offset the ongoing skills shortage. 49% of employers list recruitment as their biggest challenge staffing wise, with pay increase requests coming in second at 39.1%.

Only 37% of Employers back to pre-pandemic working models

We’re also seeing a trend coming out of the global pandemic, with 37% of employers having fully reinstated all pre-pandemic working models.

However, the temporary measures that were brought in during the pandemic have changed the shape of work for many, with 28.9% of employers prioritising health and wellbeing and 27.7% making some form of flexible working a permanent feature.

Alan Price, Group Chief Operations Officer at Peninsula, says “It’s truly staggering that we’re going into 2023 with a third of businesses saying their main goal is just to survive the year. This statistic clearly demonstrates the drastic impact that recent world events have had; a global pandemic, political turmoil, war in Ukraine and now recession coming in such quick succession has devastated many businesses, especially SME’s, with business owners now under pressure like never before.

“Here in the UK we can see the impact that the cost-of-living crisis and rising energy costs are having on businesses. We’re seeing ongoing strike action over pay across many sectors, and this is having a knock-on effect for all businesses. Labour costs are rising to meet the increased cost of living, and the increased cost of doing business is clearly a concern.

“It’s clear that this will be a tough year for many businesses, but there is also a mood of opportunity. Employers are seeing the value in retaining employees and, in turn, employees are reaping the benefits. More than half were given a pay raise and employers are looking at creative ways to retain employees, such as enhanced benefits packages or flexible working where a pay raise is not possible.

“For months, we’ve heard how difficult the job market is and, with skills shortages affecting many sectors as well as the cost and time involved in recruiting, it’s not really a surprise that so many businesses are concerned about the impact this will have on their business.”

Business Research, Education, News

Hybrid entrepreneurship better protects mental well-being

Entrepreneurs who work in a hybrid mode can learn to protect their psychological well-being, new research from the University of Cologne reveals.

Over a period of 29 years, the researchers Johanna Kuske, Matthias Schulz, and Christian Schwens investigated entrepreneurs’ psychological well-being in the UK across various stages of early business development.

‘Hybrid entrepreneurs’ build their own business ventures whilst still maintaining a wage paying job, to support themselves, as opposed to only focussing on their business start-up.

This combination allows hybrid entrepreneurs to experience entrepreneurial stress and try out different strategies to cope with it — a learning experience, which benefits their psychological well-being when reaching the implementation stage of their business idea, in which they leave behind their other work.

This beneficial learning effect of hybrid entrepreneurship, however, depends on entrepreneurs’ personal circumstances: According to the findings, it is only those entrepreneurs who did not face any caring responsibilities and could therefore fully focus on learning, that benefit in term of psychological well-being.

Thus, the study suggests that entrepreneurs can learn to be well even before fully committing to their entrepreneurial venture. And that it is important to make sure that their personal circumstances provide them with enough freedom to learn from their experience.

Business Research, Diversity & Inclusion, News

A Failure To Consider Language Diversity In EDI Provision Causes Problems For Multinational Firms

Multinational companies are struggling to effectively produce and embed effective equality, diversity and inclusion (EDI) focused agendas, according to research from Durham University Business School.

Despite operating on a global basis and pulling in a workforce that spans multiple continents, cultures and languages, multinational companies are often disappointed with the progress they make with regards to EDI management.

According to research by Martyna Śliwa of Durham University Business School, Sylwia Ciuk of Oxford Brookes University, and Anne-Wil Harzing of Middlesex University, the difficulty often stems from having too narrow a focus when it comes to what matters in EDI provision.

Martyna Śliwa says,

“Multinational companies recognise the importance of the EDI agenda, but often struggle to implement it and leverage its strategic potential. Often, their focus lies on a small range of diversity and dimensions which fail to include other important factors, such as language.”

A lack of attention to the management of linguistic diversity is revealed to be of particular concern. Even though language based stereotyping and discrimination are recognised barriers to work and career outcomes for minority individuals and groups, the researchers say too little focus is paid to fostering linguistic diversity and inclusion in such organisations.

Their study seeks to address this by proposing a two-step framework for multinational companies to apply when creating and implementing their EDI agendas.

The first step seeks to change the way multinational companies think about diversity and differences.

Martyna Śliwa says,

“We need to stop viewing diversity and differences primarily in negative terms, or seeing them as challenges to overcome or work around. Instead, viewing diversity in a positive light, and differences as something fluid can allow us to act differently.”

To achieve such a shift, those leading teams or departments within multinational firms must recognise multiple languages and multi-lingual workers as a resource, and question the assumption that the non-dominant languages of the company are somehow inferior.

The second step concerns changing multinational companies’ actions.

Deliberate steps need to be taken to challenge expectations and norms that members of non-dominant groups – those who communicate at work in a foreign language – need to adjust to the dominant group’s way of communicating.

Sylwia Ciuk says,

“Displaying positive attitudes towards language differences and an openness to non-standard language norms, as well as adjusting the communicative behaviour of all members of the organisation are all small, but vital steps to enhance inclusion.”

Reciprocity is key here. Anne-Wil Harzing says,

“Successful interactions between those with different levels of fluency in the language of their interaction should not solely depend on the skills of non-dominant language users. Aside of putting additional pressure on such colleagues, there is a significant danger of miscommunications occurring.”

The framework proposed by the researchers brings considerable practical implications for those operating in human resource management. Though the study displays the framework as a means of linguistic diversity in particular, the researchers state the framework can be applied to any other area of the EDI discussion.

The study has been published, and is available to read via the Human Resource Management Journal.