Inverness businesses increasing wages to support employees with cost of living crisis
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More than half of businesses in the Highlands and Islands have been increasing wages to support their employees in response to the cost-of-living crisis.
This is according to Scotland’s latest Rural Business Survey commissioned by Highlands and Islands Enterprise (HIE), South of Scotland Enterprise, and the Scottish Government.
More than 1000 Highlands and Islands businesses responded to the survey carried out between 5 October and 30 November 2022.
A report of the findings for the region showed that 82 per cent of the region’s employers have been taking action to support their employees in response to the cost crisis. More than half were engaging with colleagues to understand their needs (64 per cent), increasing wages (51 per cent), and encouraging flexible working (50 per cent).
Martin Johnson, HIE’s director of strategy and regional economy, said: “This survey was carried out at one of the hardest times we’ve seen for businesses. It was on the back of many challenges, not least Brexit, the pandemic, and in the context of others such as the cost crisis, high inflation, and recruitment issues.
“The feedback shows many of the real impacts all of this has been having, not just on our region’s businesses but on the people involved in those businesses, and how they have been adapting. It’s very encouraging, for example, to see so many adopting fair work principles to support their employees and applying innovation to fine tune their operations and navigate the most trying of circumstances.
However, 79 per cent of business owners and senior managers also reported impacts on their own wellbeing. More than half said these impacts included feeling worried or stressed, 49 per cent were working longer hours and 45 per cent were struggling to balance work and home life.
Ninety-nine percent of businesses in the region had experienced cost increases in the past year. These were most notably in relation to raw materials, electricity and gas and transportation of goods.
Most businesses were absorbing costs (70 per cent), increasing prices (68 per cent) or making energy efficiency improvements (55 per cent).
Two in three businesses said they were currently unable to plan more than six months ahead, and 75 per cent had postponed plans because of the cost increases.
Mr Johnson added: “As always, we’re grateful to all those who took part in the survey and provided such valuable insight. We will be sharing the findings with our partners and stakeholders and using them to inform our approach to providing business support.
“In the meantime, we’d welcome approaches from businesses looking for innovation support; whether that’s to develop a new product or simply to change their way of doing things, to help them maintain or improve their competitiveness.
“We’re also keen to hear from those who want to become fair work employers. For this we offer support packages for social enterprises in any sector, and to SMEs working in creative industries, food and drink or tourism.”
