It’s hard to believe Christmas is now done and dusted and we’re nearly at the end of the year – and what a year it has been.
One of the things that can have the biggest impact on businesses is instability, and it’s fair to say we’ve had that in bucket-loads.
It affects operations, hurts profits and can stifle growth ambitions – and we’ve certainly seen that first-hand as crisis after crisis has hit the business community.
Survival has been the name of the game in 2022 and those with the ability to have innovated, adapted, fought for survival and hunkered down. Sadly, the less lucky have closed down.
One major issue that has plagued industries across Scotland – and indeed the UK – was staffing, caused by a whole range of factors.
From the ‘great resignation’ and strike action to ‘quiet quitting’ – an apparent new trend that means putting in the absolute minimum effort required to get through the working day – organisations haven’t had it easy when it comes to their most vital resource.
Anyone who hoped the problem might vanish by year-end was left disappointed. Only a month ago, the University of Strathclyde’s Fraser of Allander Institute released figures showing a third of firms were still reporting difficulties in recruiting.
A massive 90 per cent of the 450 companies surveyed are struggling to hire. A lack of skills, applications and soaring wage expectations were all to blame.
I’ve said it before and I’ll say it again… keep hold of your best people. Train them, nurture them, look after them. If you lose them, the cost of replacing a salaried employee can be the equivalent of 6–9 months’ salary.
I bang on about resilience often enough, and if there’s one lesson that employers should take into next year, it’s to do your bit to help your people build that.
It’s your responsibility to create a culture that enables that to happen – have open dialogue, keep them informed of the highs, praise successes, and be honest about the lows. But show them the light at the end of the tunnel.
That’s how you build their confidence in your strategy – and that’s how you retain talent.
We’ve also seen entrepreneurial resilience take a hit. I can’t believe it’s only two years since I was applauding how around a quarter of a million Scots were starting new businesses despite the pandemic.
What a difference two years makes. In October, a report from the Global Entrepreneurship Monitor showed the number of Scots setting up new businesses had dropped behind the rest of the UK per capita.
It’s not surprising. The current climate isn’t exactly inspiring confidence, so we shouldn’t be too hard on people for playing it safe. But we must continue promoting entrepreneurship and removing barriers.
There are support packages out there. Scottish Enterprise offers innovation support, scaling advice, and grants. The Scottish Government invests in initiatives like the Scottish EDGE fund and VentureFest. The Prince’s Trust also helps young people turn their ideas into businesses.
There’s help if you look – and if you’ve got a great idea, go for it.
It won’t be long until the bells ring in Hogmanay. Let’s hope they ring in a brighter year for business across Scotland too.
Support for Scotland’s High Streets Must Continue
Scotland’s high streets really took a hammering this year as footfall and shop occupancy rates remained well below pre-pandemic levels – even after restrictions lifted.
With the cost of living spiralling throughout 2022, retailers saw a major slowdown in spending, as Scots were forced to watch their pennies.
The retail sector is Scotland’s biggest private sector employer, with over 230,000 jobs, so growing businesses on our high streets should be a top priority.
At least the Scottish Budget showed that ministers are listening. The announcement that business rates would be frozen at 2022 levels will have come as a relief.
That news will have been particularly welcomed by the 19 organisations – including the Scottish Retail Consortium and Scottish Chambers of Commerce – who recently called on John Swinney to make the freeze.
Scotland’s business rates have already been at a 23-year high, and with energy bills and cost pressures rising, this freeze should alleviate at least some strain.
Ironically, last week’s industrial action may have provided a temporary boost to some retailers.
With postie strikes delaying online deliveries and rail strikes making trips to the city centre harder, many shoppers turned local.
Maybe it’ll remind people what’s on their doorstep – or maybe they’ll revert to online next time. We’ll see.
It Made Me Weep
Food Prices Soar – But Fringe Humour Brings Relief
It has been a difficult year for many, but us Scots often use humour to get us through. It’s a trait I admire – one that helps in both business and life.
With the ONS reporting that the cost of budget food items has soared by 17% this year, it reminded me of the best joke at the Edinburgh Fringe.
Comedian Masai Graham won back in August with:
“I tried to steal spaghetti from the shop, but the female guard saw me, and I couldn’t get pasta.”
A perfect example of art imitating life – and one that many might find just a little too close to home this year.
It Made Me Laugh
Elon Musk vs. Santa Claus
I couldn’t help but chuckle at the news that Elon Musk could ban Santa-tracking on Twitter.
The new rule banning real-time location sharing – meant for user safety – could, bizarrely, apply to Father Christmas himself.
Tracking Santa is a bit of festive fun, and this one-size-fits-all policy clearly has flaws.
At the time of writing, Musk hadn’t commented on whether Twitter users could share Santa’s location.
Hopefully, the big man in red made it through unscathed. Otherwise, Elon could find himself on the naughty list next year!
