Rising costs are the main concern for business owners and managers, and survival is also high on the agenda, according to a survey by Peninsula Group.

The HR consultant says it polled 79,000 businesses in Australia, Canada, Ireland, and the UK, with 4,000 of the survey responses sourced in Ireland.

One in three of the survey respondents in Ireland cited business survival as one of their main goals for 2023, though recruitment of necessary staff is cited as the main priority.

Rising costs are the top concern for businesses in Canada (73%), Ireland (88%) and the UK (80%), whereas in Australia it only comes third.

In the survey cohort across the four countries, two-thirds of employers said they are improving remuneration to help with staff retention.

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Those who are unable to pay more are offering flexible working hours (51%) and mental health support (31%) to help prevent employees leaving.

Across the survey cohort, 37% of employers having fully reinstated all pre-pandemic working models. However, 28% have made some form of flexible working a permanent feature.

Moira Grassick, chief operations officer at Peninsula Ireland, commented: “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. The global pandemic, war in Ukraine and now recession coming in such quick succession has devastated many businesses, especially SMEs, with business owners now under pressure like never before.  

“In Ireland we’ve seen that increasing costs continue to squeeze business owners on all fronts. Labour costs are increasing to meet the rising cost of living while the cost of doing business and rising energy prices remain the biggest concerns for an overwhelming majority of employers as we enter 2023.”

Grassick added: “Employers are looking at creative ways to retain employees, such as enhanced benefits packages or flexible working where a pay raise is not possible.

“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.”

Image: Moira Grassick, chief operations officer at Peninsula Ireland