Employers worldwide have never offered a higher pay rate and greater benefits as they are now, yet they are unable to find anyone willing to accept the job offers. Like most countries, the Great Resignation has taken the US by a sweep that nobody saw coming. However, the phenomenon isn’t changing the dynamics of the employee-employer relationship in national chains and corporations alone; it also has several negative impacts on small businesses.

Small business owners are being affected by the Great Resignation even more than big corporations. Their limited resources and smaller profits keep them from offering higher pay and greater benefits to retain employees. Hence, they have to face the following negative impacts of the phenomenon:

Increased Competition

Many people previously working as employees are hoping to become entrepreneurs. While different aspiring entrepreneurs have different reasons to launch their small businesses, it has resulted in many similar small businesses popping up in the same regions.

Smaller businesses have to work harder than ever to stay relevant and maintain their customers. They need to come up with unique marketing strategies and adopt more means of marketing their goods than they were using until now. The small businesses established by those leaving the force face the same issues.

Reduced Profits

The profit margin of small businesses is usually much smaller than giant corporations. However, it has reduced even further since the Great Resignation began. Small businesses have had to match their pay as the big organizations and come up with unique employee benefits to retain their employees.

Many small businesses are now offering paid time off to their employees, further reducing their profit margins. However, small businesses don’t have much choice in the matter, and many are willing to make the sacrifice rather than completely shutting down their business.

Resources Spent on Training

Small businesses that don’t need their employees on-site have switched to hiring off-shore resources for better value for their money. While this trick has saved them considerable money, it has resulted in small business owners spending more time and resources in training their off-shore employees.

Small businesses are signing up for various software applications to ease their employees’ jobs and keep them happy. They are also spending time creating detailed guidelines so their employees aren’t confused at any point.

How Can Small Businesses Make Through the Great Resignation?

During the Great Resignation, small business owners can take many lessons from giant corporations on not treating employees. Instead, they can communicate with their employees and understand their needs to create an environment where employees would like to work. Small businesses can also:

  • Create and respect the work-life boundaries of employees.
  • Provide resources and equipment for employees to help them settle at work.
  • Pay attention to the health and safety concerns of employees and their families.
  • Build a referral program to incentivize new hires for old employees.

 

Finally, paying attention to employees to gauge how they are feeling and acting at work can spare employers at any level from losing more of their employees. Employers may find that retaining employees willing to stay at a revised pay rate can be easier than convincing employees to join back once they have quit.