The Future of Small Business Labor
April 4, 2018
Rapidly changing employment trends affect small businesses at their core. After all, as Anne M. Mulcahy, former chairperson and CEO of Xerox put it, “Employees are a company’s greatest asset.”
Today’s labor market is unpredictable. Forecasting the future is near impossible. Small businesses need to stay up-to-date with the latest labor trends to remain on top. So, it’s essential to have an idea about the future of employment.
If you’ve misplaced your crystal ball, read on to discover our predictions and how Veem can help you take on what’s next in small business labor.
Job Market Statistics
According to a study by the National Federation of Independent Businesses (NFIB), 44% of small business owners have faced difficulties finding a qualified candidate for a job opening. 30% even reported that they never found a satisfying candidate for a particular job opening.
While this statistic is quite alarming, the situation isn’t dire in every sector. Small businesses in health care, social assistance, and manufacturing face the biggest challenges when looking for employees. But sectors like catering, tourism, and IT tend to have more success when advertising for vacant positions.
However, leaving a position open takes its toll on small businesses. Employee satisfaction and productivity tend to drop when employees have to take on tasks to cover for a vacant position.
Add the costs of advertising and client dissatisfaction to the list, and an employment vacancy can turn into a significant loss for businesses. According to the same study, US businesses lose a whopping $160 billion each year because of vacant positions.
According to the same study, US businesses lose a whopping $160 billion each year because of vacant positions.
Many small business owners respond to this problem by taking on even more work themselves, or providing training for their existing employees to get them ready for new tasks.
Although both of these strategies are effective in the short term, a different, more sustainable solution is needed if you want your employees to thrive while maintaining a healthy work-life balance.
All this points to a rather disturbing observance: something’s seriously wrong with education.
There seems to be an ever widening gap between what schools provide to their students and what businesses expect from candidates. According to a recent study, only 27% of college graduates find jobs related to their studies.
Does that mean you have to put up with less-skilled workers? Not at all.
Luckily, a new trend is arising in education. Several institutions like LinkedIn Learning, Coursera, and Udemy offer courses in various areas of learning. These courses are highly specialized and offer training and credentials from respectable sources.
Several institutions like LinkedIn Learning, Coursera, and Udemy offer courses in various areas of learning. These courses are highly specialized and offer training and credentials from respectable sources.
Most of these courses are offered online, which means that anybody with an internet connection can participate. Many employees opt for these new types of credentials when they want to deepen their knowledge or retrain.
When checking potential candidates’ credentials, make sure you don’t overlook these new training options. In fact, you may even want to research the market and offer a course to your current employees, allowing them to hone their skills and boost their confidence.
Not only will they appreciate it, but you’ll benefit from a highly-skilled workforce without having to post in the classifieds.
Digitalization brought many changes to the the labor market. While teleworking used to be an oddity, today it’s on the rise.
23% of employees do at least some of their work remotely, and with flexibility-loving millennials entering the market as we speak, these numbers are likely to increase.
It’s a win-win situation: engaging remote workers saves businesses significant costs, time, and allows them to hire workers from a much larger pool - the world.
If you’re considering hiring remote workers, read our blog How to Find, Train, and Manage Offshore Workers.
New labor market trends call for new processes. Businesses have to adjust to the demands of the 21st century and try new approaches to various tasks to save time and money. If not, you’re sure to lose out on some of the world’s most talented employees.
With global business come global suppliers. Though they’re not exactly employees, they do work with you, and need to be paid. For that, there’s Veem.
Veem allows you to send and request global payments with just a click. Veem charges no wire fees and offers competitive foreign exchange rates, saving you money that you can spend on growing your business.
Sign up for a free Veem account to click, save, and grow.