A new survey has revealed a resilient attitude dominates in Scottish businesses, despite economic uncertainty and challenges in attracting and retaining skilled workers.
Asked about their future ambitions, 59% of respondents to the Henderson Loggie Scottish Business Survey have plans to grow their businesses in the year ahead, while 37% are aiming to strengthen their existing levels of activity.
The research was carried out in association with the research team at Aberdeen & Grampian Chamber of Commerce and included more than 50 businesses from across Aberdeen and Grampian, Glasgow, Edinburgh, Dundee and Angus.
As they work to control costs, there is evidence that businesses are prepared to invest in the wellbeing of employees. Two thirds (65%) of owners and managers interviewed said staff recruitment and retention is a key priority over the next two years, while more than half (51%) of all respondents are prioritising employee wellbeing and staff development.
The vast majority (78%) of Scottish businesses now see mental health as a joint responsibility between employer and employee - and 12% see it as the sole responsibility of the employer.
The number of people working from home has increased by seven percentage points to 29%, compared to pre pandemic levels.
The majority (57%) do not intend to use increased home working as a permanent business model going forward, either because it’s not suitable for their business (72%), or because there is a perception that problems will occur from a negative impact on working culture or reduced communication (28%).
Of the one in three who responded positively to home working, 71% cited improved staff wellbeing as the reason, 65% perceive a recruitment advantage in offering flexible working and less than half (47%) gave increased productivity as reason for adopting the practice.
While employee conditions may be improving, plans to transition to net zero are set to advance more slowly, being a focus for just 18% of businesses surveyed. Innovation, research and development were at the bottom of the table, with only 10% of respondents listing it as a key priority in the short term.
Jaslin Bhagrath, partner and head of accounting and business solutions at Henderson Loggie, said: “It is a tough environment, but overall, our business barometer points to a sense of fortitude in the business mood as managers continue to deal with the fallout of Brexit, the pandemic and the ongoing impact of the war in Ukraine.
“Yet, while grappling with issues around cost control, concerns for employee wellbeing are front of mind right now as they prioritise attracting, training and retaining the people needed for their businesses to prosper in the short term.
“It may raise questions around long term strategy as this focus on staffing issues ranks ahead of improvements in sales and marketing which is of importance to only 31% of respondents, and investment in innovation and R&D which is a priority for just 10% of businesses in Scotland today.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
