Productivity: it’s the buzzword of the year, and according to Aussie small business owners, it’s also their biggest headache. New findings from Cameron Research reveals what many employing business owners already know deep down: productivity is a problem, and the biggest roadblock? “Staff, staff and staff.”

From red tape and IR rules to cultural shifts and post-pandemic burnout, employers around the country are feeling the pinch when it comes to getting the best out of their teams.

As one frustrated finance business owner put it: “Is it a youth thing? I’m not sure. But it seems if you stub your toe then you take a day off. At least one day … People seem softer, less inclined to stay back and get the job done.”

Another business owner in retail didn’t mince words: “We have some really great staff members who work hard but there are also some who, for example, will roster themselves off because it’s their birthday or even their boyfriend’s birthday.”

There’s a consistent theme in the feedback: a perceived drop in work ethic, a rise in entitlement, and a general sense that people are simply not as motivated to put in the hard yards.

Too much red tape and not enough flexibility

It’s not just about attitudes either. The industrial relations framework is copping a fair bit of flak too.

“What would improve our productivity would be a complete overhaul of the award system,” one training business said. “Lots of our staff would happily work just evenings … They can’t do that under the award system because there’s a requirement that they work a full day, a minimum 8-hour shift … How ridiculous is that?”

Employers also feel hamstrung by the legal complexity of managing underperformance or misconduct. As one mechanic shared: “If you could get the job done without having employees, you’d do it.”

Small Business Secrets to Hiring Smarter

Tech to the rescue

So what’s the solution? More and more, it’s technology,  especially AI.

“The first question I ask is ‘can I put it into a system?’ Can tech do it?” said one wholesale business owner who’s given up on finding the “roll-up-your-sleeves” type.

From CRMs to offshoring and automation, tech is becoming the productivity lifeline for many businesses, not just to streamline operations, but to reduce their reliance on staff altogether.

“I’ve taken $1.5 million in costs out of the business without impacting on revenue, mostly through AI, robotics and offshoring,” said one large business owner. “I hate to say it because I’m very pro-Australian but it is VERY hard to make the case to employ in Australia.”

Even small players are making big gains: “My sales person can now handle accounts because both roles were reduced thanks to the CRM,” said one swim school operator.

Working smarter

While many remain optimistic about AI’s potential, others are blunt: “The only way to increase productivity is to use AI and sack people,” said one builder.

The big takeaway? When it comes to productivity, small business owners are feeling squeezed from both ends: by staff who don’t seem motivated, and by systems that make employing them harder than ever.

In the meantime, tech, and in particular AI, is shaping up to be the go-to solution for a sector looking to work smarter, not harder.

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