The September 2024 Business Radar report from Pitcher Partners paints a picture of resilience and strategic adaptation among Australia’s middle-market businesses. Based on insights from 142 industry leaders, the report reveals a steady confidence, despite cost pressures continuing to pinch. Consumer demand has been a standout driver of optimism, with 43% of leaders citing it as a top positive influence, and 37% pointing to efficiency gains from AI and automation. Yet, increased operating expenses, driven by inflation and labor costs, still challenge these businesses' bottom lines and growth outlook.
Succession planning remains a critical area, with only 28% of businesses having a fully formalized plan, while another 29% operate with a loose framework. The lack of preparedness is particularly pronounced in smaller businesses—those with turnover under $10 million—which leaves them vulnerable as the anticipated "silver tsunami" of retiring Baby Boomer leaders approaches, impacting nearly 40% of SMEs. While larger firms show some readiness, with 56% of those with over 200 employees having succession plans, midsize companies with 100-200 employees lead the way at 77%. The report makes it clear that succession planning should be more than a last-minute scramble, advocating for early, strategic planning to protect value and ensure a smooth leadership transition.
For job seekers, these trends will influence confidence in exploring new roles within the middle market. With many businesses juggling rising costs, candidates may question potential employers' financial resilience and growth potential. Still, the consistent demand and investment in tech signal a forward-thinking approach, offering some reassurance. However, the lag in succession planning, especially in smaller firms, might give candidates pause when considering long-term opportunities. Companies with a clear and proactive succession strategy will likely attract top talent, as candidates increasingly value stability, career growth, and a well-prepared leadership pipeline. For employers, showing a vision for the future could be the difference in attracting committed, high-caliber professionals looking to build a stable and impactful career.
Business radar 2024 (2024) Pitcher Partners. Available at: https://www.pitcher.com.au/business-radar-2024/ (Accessed: 06 November 2024).
