Fingal Business Sentiment Survey (2023 Q1)

Fingal Chamber is delighted to present the results of its first Business Sentiment Survey for 2023.

Our survey has been designed to pinpoint key challenges for business in Fingal and in doing so identify workable solutions to support them. The survey also helps us refine Chamber policy on the significant issues that have been highlighted.

The survey was conducted over a three-week period from 13 – 31 March 2023 and focused on the immediate and short-term challenges facing businesses in the Fingal region, including additional questions reflecting those new challenges facing business since our last survey.

Of the total number of responses received, 46% were from businesses with 26 plus employees while 44% of responses came from businesses employing 25 or less.

More than three quarters of responses came from the hospitality and tourism area, business and professional services, transport and logistics, retail and wholesale, healthcare and pharmaceuticals, manufacturing and production sectors.

The survey concentrated on key areas such as business challenges and competitiveness, staff retention and skills gaps, barriers facing businesses recruiting, energy costs and future outlook. Additional questions looking at the area of the Temporary Business Energy Support Scheme (TBESS) was included to ascertain if this is assisting Chamber members with rising energy costs.

Again, the survey highlights significant challenges facing Fingal businesses in the short and medium term namely, staff retention and recruitment as well as the availability of skills and talent. The lack of housing for employees and rising business and energy costs are the biggest risks impacting Fingal’s competitiveness.

The responses provided strong optimism for the future of Fingal with almost 65% of respondents saying they expect revenue to increase in the next six months, almost 45% expect profits to increase, almost 70% plan to upskill its labour force while over 45% expect staff numbers to increase.

Fingal Chamber conducts its business sentiment survey twice yearly providing critical feedback to its members, the local authority and local representatives on the important issues facing businesses in Fingal. The next survey will take place in Q3, 2023.

A sincere thank you to all businesses who took part in our survey. Sharing your views and experience is vital not only in forming our policy and advocacy work it is essential feedback for Fingal County Council’s Executive Team.

Business Challenges

We asked ‘What is the biggest challenge facing your business in the next six months?’

What is the biggest challenge facing your business in the next 6 months?

Staffretention&recruitmentAccesstofinanceProductivityMarketshareBusinesscostsEnergycostsSecurityofsupp

Almost 40% of businesses said that the cost of doing business is the biggest challenge facing them in the next six months.

According to the National Competitiveness and Productivity Council (NCPC) published in the last quarter of 2022 it states: ‘The energy cost crisis in Ireland has led to two significant challenges, firstly the cost of inputs to Irish businesses have risen considerably, putting pressure on business profitability and discouraging investment and employment. Secondly, the energy crisis means that consumers who are facing higher energy costs will likely increase demands for higher wages, as rising prices will reduce household’s disposable income.’

The NCPC acknowledges that reducing costs to business on the longstanding issues of credit costs, insurance and legal costs is vital to boosting the competitive position of Irish firms.

Among the recommendations to help and support businesses with rising costs the report states that the agreed recommendations made by the Retail Banking Review are implemented swiftly. It also states that the tapering of government supports to businesses continues, and to ensure firms are made aware of the financing options available to them.

At 23% staff retention and recruitment continues to be a challenge facing businesses in Fingal.

According to Adare Human Resource Management’s latest HR Barometer Report talent acquisition, retention and recruitment will remain the top priorities for businesses this year.

While one of the Harvard Business Review’s nine trends that will shape work in 2023 and beyond says that employers will ‘quiet hire’ in-demand talent internally. The Harvard review says that the concept of ‘quiet quitting’ the practice where employees refuse to go above and beyond in their role by doing the minimum required in the jobs is causing a disruptive element in the workforce. Where employees ‘quiet quit’ organisations keep people and lose skills and capabilities.

The Review explains that in 2023 organisations will turn this practice on its head and embrace ‘quiet hiring’ as a way to acquire new skills and talent without adding new full-time employees.

This could happen by encouraging internal talent mobility and to compensate their people for their evolving roles organisations could offer a bonus, salary increase, additional time off, greater flexibility etc.

Competitiveness

Turning to the question of ‘What is the biggest issue for Fingal’s competitiveness in the next six months?’

What will be the biggest issue for Fingal’s competitiveness in the next 6 months?

45% of businesses in Fingal said that the availability of housing is a serious issue for them.

Shortage of housing to buy or rent are serious issues for big companies in particular and some businesses in the region are seeking to purchase houses for accommodation for their staff.

The housing emergency in Ireland is at critical levels and while this is a common theme arising from other Chamber surveys around the country there is a real concern for Ireland’s reputation and the ability to attract further FDI as a consequence.

Fingal County Council’s Development Plan provides for affordable, social housing, build to rent and living cities scheme, vacant house refurbishment scheme and this is very much welcomed. However, there is a sense among the business community in Fingal that the pace of progress is frustratingly slow and the planning process adds to the exasperation of the situation.

Almost 21% of Fingal businesses cited the availability of skills and talent as their biggest challenge.

12% of respondents said public transport services or traffic congestion were at risks to the region’s competitiveness.

Some businesses also highlighted infrastructure such as water, energy and broadband as well as taxation levels as other areas impacting competitiveness in the region.

Fingal Chamber continues to work on these important areas with the Minister for Housing, Fingal County Council, the NTA, TFI and TII.

Energy Costs

How concerned are you about the impact of rising energy costs?

Responses

Energy costs are causing a huge concern for many businesses and homeowners.

Over half of respondents said they are very concerned by rising energy costs and almost 66% of respondents said they had implemented cost saving measures in their business. Some examples of those cost saving measures include: working from home and not using office space, turning off heating and charging appliances during peak hours, investing in solar panel technology, staff awareness on the importance of saving energy and looking to other suppliers for better offers.

Fingal County Council and the Sustainably Energy Authority of Ireland have a range of supports for business as follows:

Business Grants and Supports: https://www.seai.ie/business-andpublic-sector/business-grants-and-supports/

SMEs information and Support: https://www.seai.ie/business-andpublic-sector/small-and-medium-business/

Steps to Energy Efficiency for SMEs: https://www.seai.ie/business-andpublic-sector/small-and-medium-business/steps-to-energy-efficienc/

Find out if your business is eligible for a €2,000 voucher towards the cost of a professional energy audit: https://www.seai.ie/business-and-publicsector/small-and-medium-busines…

By what percentage have your energy costs increased in the past 6 months?

When asked by what percentage had energy costs increased in the past six months, 30% of respondents said that their energy costs had risen by between 26-50% and a further 30% said costs had risen by 50% or more.

Temporary Energy Business Support Scheme

Did your business avail of the Temporary Business Energy Support Scheme (TBESS) announced in Budget 2023?

Responses

Responding to the question about the Temporary Business Energy Support Scheme only 22% availed of the supports saying it was helpful, some businesses said it was very slow to process, others said it was geared towards big companies and some organisations said that because the minimum wage and taxation levels had increased the benefits were minimal.

Of the 57% of respondents who said they had not availed of the scheme, the majority said it was not applicable to them, some said it was too complicated to apply for, others said their business was not large enough and did not qualify.

Has your business experienced an increase in staff turnover over the past 6 months?

Responses

Responding to the question ‘Has your business experienced an increase in staff turnover over the past 12 months?’

The survey noted that 43% of Fingal businesses have experienced an increase in staff turnover while almost 57% said they had no increase in turnover.

Skills Gap

Has your business struggled to fill a specific skills gap over the past 6 months?

Almost 57% of Fingal businesses said they found it difficult recruiting for a specific role, while just 7% said it was difficult filling a skills gap through internal resources and almost 23% of businesses said their business does not have a skills gap.

Hospitality and kitchen staff, drivers, machine operators, marketing managers and cloud architect roles were some of the roles businesses had difficulties in filling recently.

Through its partnership with Skillnet Ireland, Fingal Chamber is in a unique position to assist businesses in the region address their skills gap by:

 Identifying and addressing their skills needs

 Information regarding successful approaches to learning and talent development

 Offering flexible training programmes tailored to the needs of businesses in Fingal

 Expert guidance on achieving value when investing in learning and development

 Programmes for current and future leaders

 Certified and non-certified technical training

For further information on what Fingal Chamber Skillnet has to offer go to www.fingalchamberskillnet.ie

Attracting and Retaining Staff

What have been the biggest barriers to your business attracting and retaining staff?

Responses

Responding to this question, 38% of businesses said that recruiting for specific skills shortages posed difficulties in attracting and retaining staff, while almost 35% of respondents said competitive salaries and employee benefits are important for them in attracting new staff. Almost 25% of respondents said availability of housing and rental accommodation is factor in attracting new talent.

According to a report by Forbes in September 2022 on effective employment retention, employers should adopt the following strategies to retain staff - offer competitive salaries, be flexible with working arrangements allowing staff to work from home, where possible provide flexible scheduling and reduced workdays, encourage and promote a work-life balance, recognize and reward employees for their work, create a culture that employees want to be a part of, build employee engagement, create an emphasis on teamwork, offer wellbeing events and programs and manage for retention.

The need to retain staff, especially highly skilled ones is so important that some organisations are reportedly engaging in ‘stay interviews’ which are essentially informal meetings with colleagues to check in with them, catch any issues before they develop and ensure they are happy in their workplace.

Looking to the Future

Businesses were asked how they expect their business to perform in the next six months:

Over the next 6 months do you expect your:

Despite the challenges of recruitment and retention, skills gaps, lack of housing, soaring energy costs and inflation, the outlook remains positive for Fingal all businesses. Over 45% said they expect staff numbers to rise, while almost 70% said staff training will increase in their organization.

Almost 65% of organisations said they expect revenue to increase and almost 45% expect profits to increase over the next six months.

Conclusion

Despite the huge challenges that comes with of lack of housing, difficulty in attracting and retaining employees, rising business and energy costs, Fingal businesses are working hard to provide products and services across all sectors of industry.

Businesses have just completed a full year of post pandemic trading and they are continuing to adjust to the changes that two year disruption brought to everyone’s lives.

The pandemic has forever changed how we do business, how we work, how our employees want to work. New phrases such as ‘the great resignation’, ‘quiet quitting’, ‘stay interviews’ are common in workplaces.

The overriding outlook from Fingal businesses is positive with an increase in recruitment, upskilling, revenue and profits forecasted for the majority of businesses. However, now, more than ever it is important that businesses in the region work together to build resilience into their business models so we are all better prepared for the next disrupter.

Fingal is a great place to do business and there is huge appetite to build on what the region has to offer. It has significant economic advantages including Dublin Airport, fast access to Dublin Port, rail, road, power and telecommunications infrastructure.

The implementation of Fingal County Council’s 2023-2029 Development Plan has now been ratified. This plan is important for the future success of the region, it will bring great opportunities for businesses and residents of Fingal. Further development of enterprise zones, ambitious housing targets, enhanced public spaces, new greenways and cultural developments will bring major transformations to the area. Fingal Chamber will continue to work in collaboration with Fingal County Council to support these positive changes for everyone’s benefit.

The Chamber will continue to leverage its association with Skillnet Ireland and Adare Human Resource Management to support businesses requiring training and HR expertise in the Fingal region.

Fingal Chamber Skillnet supports regional development by helping local businesses to arrive at shared local solutions that are more accessible, affordable and effective in meeting their needs. The collaboration of the two organisations address both technical and non-technical skills needs across multiple sectors. Benefits of Skillnet training include more productive staff, improved retention rates, increased staff motivation, cost-effective training, a skilled workforce and a competitive and progressive workplace.

Feedback from this Business Sentiment Survey forms an important part of the Chamber’s work enabling us to effectively advocate and deliver further positive change for Fingal and its businesses.

The next Fingal Chamber Business Sentiment Survey will be conducted later this year.