LESSONS IN LEADERSHIP 58 not to forget about the power of communication during periods of economic instability. Yes, money talks, but having an open dialogue goes a long way for fostering a sense of trust and a better relationship between company heads, and staff.” ABOUT VISTAGE Vistage is the world’s leading business performance and leadership advancement organisation for small and medium sized businesses. For more than 65 years, we’ve been helping CEOs, business owners and senior executives solve their greatest challenges through confidential peer advisory groups and one-to-one executive coaching sessions with accomplished business leaders. Today, more than 45,000 members in 35 countries rely on Vistage to help make better decisions for their companies, families and communities. According to Dun & Bradstreet data, Vistage CEO members grew their annual revenue on average by 4.6% in 2020, while nonmembers with comparable small and medium sized businesses saw revenue decrease by 4.7%. Learn more at http://www.vistage.co.uk. staff, they’re still feeling the impact of financial instability, as a result of inflation and the war for talent in a seemingly smaller pool. In fact almost half (41%) of all SME leaders claim that higher interest rates are having a significant effect on business performance. Additionally, the report found that inflation is having a knock on effect on growth, as economic conditions force more businesses to think strategically about their next move. Over half (53%) of businesses are either reducing their workforce or delaying the hiring process. Furthermore, 42% of leaders have either delayed or reduced their overall capital expenditure; and 56% have made no changes to their capital investments plans in the last six months. Vistage, Managing Director (UK), Steve McNulty said: “We are clearly seeing a shift in the behaviours of business leaders who may be streamlining departments, but are also taking the necessary steps to improve the overall retained employee experience through compensation reviews, bonuses and other financial incentives. While a step in the right direction for top talent, it’s important CEO FINE TUNING TACTICS TO BOOST MORALE As small and medium sized businesses manoeuvre past a turbulent start to the year, due to rising inflation, many are going the extra mile to ensure staff feel satisfied; making progressive steps towards staff retention. The report showed that 71% of company leaders have increased the base compensation for employees. Further to this over the last three months SME leaders have also increased investment within the following areas: • Company Culture (60%) • Leadership development (59%) • Workforce Development (53%) In addition to these areas of focus, business owners are also exploring further financial incentives. Almost half (43%) of leaders are actively investing in bonus and incentive programmes. BUSINESSES ARE STILL FEELING THE SQUEEZE AS INFLATION RISES While companies are investing in
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