Chamber Membership Pulse Survey
Q1 2022
Index Introduction.......................................... Page 1 Business Challenges............................ Page 4 Competitivness..................................... Page 6 Recruitment & Retention................... Page 7 Flexible & Remote Working............... Page 8 Business Outlook................................. Page 9 Summary................................................ Page 10
Foreword The last two years have been unique and challenging for every business in Kildare. This survey has been conducted by County Kildare Chamber to define the main concerns of our businesses and membership. When initially preparing for this survey in early Quarter 1, no one could have suspected the crisis which would be unfolding before our eyes in Ukraine. This is the first business survey nationally to be conducted since the crisis in Ukraine began and results clearly shows businesses are concerned and will remain concerned to the knock-on effects over the months ahead. I welcome the results of the survey, which we as a Chamber will now examine and use as a tool to define our policy goals and areas which need petitioning going forward. This is a bi-annual survey, with a follow up to be completed in Quarter 3/4. If you have any feedback or further comments, and would like to discuss the survey, please contact me on sinead@countykildarechamber.ie. Sinéad Ronan Public Affairs Manager
Introduction We are delighted to present our County Kildare Chamber Membership Pulse Survey. This survey was designed to pinpoint the challenges faced by our businesses in Kildare and help us to identify solutions. County Kildare Chamber is the business organisation in Kildare, proactively working to identify and progress developments that are facilitative of economic and sustainable growth. Representing an employer base of 400 businesses and over 38,000 employees across the county, County Kildare Chamber is the largest business organisation in the mid-east region of Ireland. Given the significant breadth and depth of our membership, and our representation on various bodies at local and national level, County Kildare Chamber constitutes the representative voice for business in Kildare. It particularly highlighted challenges Kildare businesses have regarding skills & training availability within the county, housing and public transport deficits, which businesses
1
see as vast impediments to competitiveness within Kildare. County Kildare Chamber will use the results of this survey to create policy and to lobby & engage on your behalf with Kildare County Council, Government and Public Representatives, giving a current and accurate picture of the current business climate in Kildare. The Chamber conducted this survey over a period of two weeks from the 28th March – 8th April 2022. Of the total responses received, 23% where from businesses with 50 plus employees, while 77% came from businesses with staff ranging from one to 50 employees. Over 60% of the responses came from the Life Science and Manufacturing area, Tourism, Hospitality and Leisure, Retail, Education and Training and the service industry. The survey concentrated on the key business challenges, competitiveness in Kildare, Post-Covid employment and the current crisis in Ukraine.
2
Businesses are also concerned with challenges arising from remote and flexible working and with the possible impacts and effects of the current situation in Ukraine. 88% of Kildare businesses are either concerned or extremely concerned with the effects of the crisis. However, bearing this in mind, the results of our survey show the majority of Kildare businesses are optimistic about their outlook in Kildare, with 57% looking towards increasing staffing levels, 60% forecasting an increase in revenue and 45% anticipating an increase in profit.
3
Business Challenges Covid 19 & the ongoing effects of Brexit have created several very challenging years for Kildare Businesses. With this in mind, our survey asked ‘What is the biggest challenge facing your business over the next 12 months?’ 51% of businesses said that staff retention & recruitment is the biggest challenge facing them. Covid 19 has fundamentally changed the rules around employment. We are living through the age of the Great Resignation. According to the US Bureau of Labour Statistics, the months of April to June 2021 saw 11.5m employees quit their jobs, and this trend is being replicated around the world including here in Kildare. We have seen our businesses trying to grapple with this, by introducing a number of measures including flexible working, revised benefits, mental health resources, access to training and development, improved communication and diversity policies.
4
Given the time this survey is being produced it is no surprise to see reducing costs are the second biggest challenge facing businesses. This accounted for over 23% of businesses. Rising inflation and the current crisis in Ukraine are two possible reasons for this worry. The Irish Central Bank stating recently there was a “much higher level of uncertainty” surrounding the Irish fiscal outlook than normal, especially surrounding the final cost of pandemic support measures and effect of the Ukraine war.
5
Competitiveness County Kildare Chamber asked ‘What is the biggest issue for Kildare’s competitiveness in the next 12 months?’ Almost 40% of businesses responded stating housing availability, followed very closely by availability of skills & talent at 38% were the biggest issues facing competitiveness in Kildare. Businesses also highlighted public transport and infrastructure such as broadband and water as other areas impacting competitiveness in the region.
6
Staff recruitment & retention When it came to staff recruitment and retention almost 60% of businesses stated staff turnover had been an issue within the last year. 50% of businesses stating competitive salary was a key incentive in attracting new employees. Positive work culture as a tool for recruiting and retaining staff also scored highly along with flexible and remote working. According to Adare HR, our Human Resource partners, when it comes to keeping and attracting staff, employers need to focus on methods of development & resourcing of further learning, upskilling and progression are vital.
7
Flexible & Remote Working Covid 19 has created a substantially different working environment for businesses and employees. It has required businesses to look at alternative ways to work, and to engage with their staff. With this in mind we asked our members what the biggest challenge with implementing flexible and remote working was. 34% of businesses stated cultivating a positive team culture was the biggest challenge when implementing flexible/remote working. Staff collaboration & Employee productivity came in as the second biggest issue with 22% of businesses, and 18% of businesses choosing onboarding of new staff their greatest challenge. Remote working, the right to disconnect and a number of other pieces of employment legislation are currently being enacted or going through the Houses of Oireachtas. We are living and through a very different working environment, where employees expect a certain level of flexibility and accommodation. Employers who have systems in place to provide same will be the businesses which do not just survive but thrive in this future climate.
8
Business Outlook Despite ongoing fears, our survey has shown the majority of businesses are optimistic about their outlook. 57% of our businesses are hoping to increase staffing levels, 60% are forecasting an increase in revenue and 45% of employers are anticipating an increase in profits perhaps showing an increasing resilience and positivity with the ability to cope with economic adversity.
9
Summary In the first significant economic business sentiment survey taken since the outset of war in Ukraine of 207 businesses employing 28,000 employees has found an alarming 88% being either concerned or extremely concerned with the effects of the crisis on their operations and profitability. The biannual County Kildare Chamber Membership Pulse Survey also found concern with challenges arising from remote and flexible working as well as the possible impacts and effects of the current crisis situation in Ukraine with the high levels of uncertainty surrounding Ireland’s fiscal outlook for the coming year and the knock-on effects of the war currently being seen in fuel and energy costs as well as rising inflation also playing a part. Again, related to the crisis in Ukraine the survey results also showed that specifically reducing costs are also a big challenge facing businesses with 23% of firms concerned about this with current rising inflation due to the ongoing as a result of the Russian invasion.
10
As a key commuter belt county as well as being one of the key business economies in the country with many multinationals and large SMEs in situ the survey found that 40% of businesses are worried about the provision of housing for their employees with 15% citing public transport as not being adequate enough to serve the population. County Kildare Chamber is the largest business organisation in the mid-east region of Ireland representing an employer base of 400 businesses and over 38,000 employees across the county. Kildare is the location of choice for existing & potential business enterprise. Our highly skilled workforce & the attractiveness of our region coupled with the quality of life we enjoy, our excellent infrastructure provision and connectivity ensures we are well placed to secure foreign direct investment. County Kildare Chamber will continue to work closely with key government agencies and local and regional stakeholders, and the feedback from this survey will allow us to advocate effectively and on the issues which matter most to you.
11
The next survey will be completed in late Quarter 3 of this year. This survey will be circulated to our membership, government departments, public representatives, and our agency partners. It will assist the Chamber in formulating our policy submission for Q2 & Q3, particularly with our Prebudget submission and Kildare County Development Plan submission. The survey will also help to strategically focus the ongoing work of the Chambers Policy Advisory Council. If you have any queries regarding the survey or want to discuss a matter further, please contact sinead@countykildarechamber.ie
12
County Kildare Chamber, Sallins Road, Naas Town Centre, Naas, Co. Kildare, W91 KV4H 045 894 074