Investing in the best staff is the most successful way to ensure the growth of a business, it has been claimed.
According to a survey by Grant Thornton, the fastest growing businesses ranked having the best people as the number one factor that made them better than competitors.
This contrasted with financial issues, such as pricing, which was ranked as only the eleventh most important factor for business success.
However, businesses showing growth of less than 5% per year, placed having the best staff much lower down the list of priorities - in fourth position.
Instead, more static businesses placed ‘high customer retention’ as the top factor that set them apart from their competitors, and pricing was ranked as fifth.
“The less well-performing businesses are always going to be forced to compete on price if they have little else to offer their customers,” said Alysoun Stewart of Grant Thornton.
“Recruiting the best people is possibly the greatest investment a business could make.
“Our advice is not to settle for 'Mr Average' when a little extra effort, be it financially or otherwise could secure a better person for the job,” Stewart added.
Flexibility to adapt to changing market conditions also ranked highly among fast growing businesses, as well as delivering a world-class service.
© Crimson Business Ltd. 2006
