Every two months, we ask business leaders across the country to share their expectations and priorities for the future. We want to track how sentiment is changing in the market and get insight on timely issues: from tax to ESG.
Read the latest views from business leaders in Scotland.
What's changed since December 2021?
As we start the year, optimism about the country’s economic prospects remains consistent with how we ended 2021. 56% of Scottish businesses remain optimistic, below the national average of 65%
Of the mid-sized businesses in Scotland surveyed, 54% are experiencing unusually high attrition rates – with more people leaving their business than normal
62% are offering higher salaries for new roles, and over one third (40%) confirmed they are offering pay rises or bonuses to help retain their existing people
The battle for talent
Competing in the talent market requires looking beyond just salary, with jobseekers increasingly taking the wider employee offering into consideration. The research finds that the Scottish mid-market is responding to this, with almost half of respondents (48%) offering flexible working opportunities as standard and 56% also currently reviewing their employee benefits package to make it more competitive.
Many of Scotland’s mid-market businesses are also willing to adopt innovative new working styles in a bid for talent. Half (50%) said they would be likely to trial a four-day working week in their business, in line with the current pilot in the UK.
“With job vacancies reaching record highs in November, the ‘Great Resignation’ has made the fight for talent among organisations fierce. Many companies are experiencing unusually high staff turnover rates and struggling to recruit to fill their available roles.
“For many employers, flexibility will be key. The rise in hybrid working has allowed people to achieve a better work-life balance, while still providing the opportunity for collaboration and human connection in the office environment. Employers who can offer this continued flexibility will be much better placed than those who don’t.”