As a business owner or CEO, it is difficult to look at the times in which we are living without trepidation. The 2022 war in Ukraine brought increased pricing at gas pumps and grocery stores. In addition, rising inflation in a post-COVID environment continues to make things difficult for businesses both large and small.
Businesses struggle to keep their doors open. This is especially true for small businesses that don’t have the operational budgets of larger corporate enterprises. Despite all of this, there are ways that small business owners can maintain stability during these unstable times.
How to Maintain Stability In Your Small Business
Especially during times of economic instability, it is important to understand your employee’s emotional need for communication. This means being upfront about the challenges that the business may be facing and what you are doing to overcome them. It is also important to solicit feedback from employees about how they are handling current difficulties and what their suggestions are for improving employee morale and wellbeing.
Here are some additional tips for maintaining stability in your small business during this current economic season:
1. Keep Scheduled Annual Reviews & Pay Increases
Although budgets are now tighter, it is important to do what you can financially while maintaining transparency with your employees. We are in an employee-favorable market and retention is a challenge. Fulfill your scheduled annual performance reviews and expected pay increases.
Recognize the need for a long-term employee strategy during unstable times. You’ll want to keep your employees happy even if it costs the company a little more than expected. Strong employee retention will keep your company operating strong.”
– Brian Martin, Vice President of Human Resources, LUXA Enterprises
2. Avoid Costly Mistakes — Utilize Virtual Services When You Can
It is important to look for ways to cut costs to increase stability. One way to do so is to avoid costly mistakes such as accounting errors. Additionally, look to mitigate compliance issues. Unqualified personnel who are assigned HR tasks for which they have not been trained will eventually fail. And be sure to have a good handle on your financial projections to avoid any unnecessary bumps in your monthly cash flow. This can set you on a trajectory that may take several months to recover.
At LUXA, we are passionate about the power of outsourcing. By outsourcing certain areas of your business such as accounting, bookkeeping, HR, and payroll, you can increase stability while maintaining a healthy bottom line.
Outsourcing allows you to focus on what you do best while leaving the rest to the experts. Consider hiring Team LUXA to help you maintain business stability.”
– Mike Chromy, President, LUXA Enterprises
3. Consider HR Lite — A Subscription-Based HR Solution
There are many options when it comes to fulfilling your HR demands, from a full-time internal HR department to a full-service HR outsourcing firm like LUXA. However, not every small business needs a full-time HR department or Virtual HR team. Most small businesses with less than 15 employees would be better off utilizing a monthly subscription-based HR service until the need for a larger team becomes necessary.
Consider HR Lite, a monthly subscription-based HR solution from LUXA. Starting at just $99/month you can scale your HR services up or down as needed without adding unnecessary overhead. Benefits include an appointed HR advisor, valuable downloadable resources, and available assistance over phone, chat, or email.
We understand that these are difficult times for businesses. We hope that by following the tips above, your small business will be able to weather the storm and grow stronger during challenging economic seasons.