Survey Highlights Employee Relations as a Key Factor in Business Complexity
New Report Shows How Poor Employee Experience Can Result in Lost Customers and Revenue
isolved, a trusted leader in HCM technology, has released findings from its latest survey that examines how business owners work with HR to improve employee experience and utilize AI to motivate their workforce. The results reveal that over half of the business owners surveyed feel that owning a business has become more complex in recent years, with one in three pointing to employee relations challenges as the main issue.
The Reality of Understaffing
The survey uncovered a troubling statistic: 57% of business owners reported losing customers or business due to being understaffed or having employees who lack the necessary skills. These issues are often tied to a lack of focus on initiatives that enhance employee experience, which is crucial for attracting and retaining the talent needed to effectively meet customer demands.
Challenges Faced by Business Owners
In today’s environment, successfully managing a workforce comes with numerous challenges. Business owners are grappling with creating a positive workplace culture, adapting to changing employee expectations, and maintaining adequate staffing levels amid economic uncertainties. Their top concerns include managing compensation costs, retaining high-performing talent, and the difficulties of recruiting qualified candidates. Interestingly, while 76% of HR leaders in isolved's report do not see employee expectations as unreasonable, 55% of business owners believe these expectations are rising, highlighting a disconnect between the two groups.
Misalignment in Understanding Employee Expectations
Amy Mosher, chief people officer at isolved, commented, "There is a misalignment between business owners and HR leaders regarding employee expectations, which calls for more meaningful conversations about balancing employee needs with business realities." This underscores the necessity for data-driven insights and collaboration to create a positive employee experience that ultimately benefits both the workforce and the company’s success.
Key Findings from the Survey
The survey revealed several important findings: a notable 87% of business owners have expressed growing concerns about their employees' overall wellness, encompassing financial, emotional, social, and occupational aspects, over the past year. Additionally, 59% of business owners are looking to reduce non-employee spending, while 51% plan to decrease their full-time employee count.
Financial Wellness Initiatives
Moreover, nearly 84% of business owners believe their employees are living paycheck to paycheck. In response, 92% are considering offering financial wellness benefits, which may include flexible pay options like earned-wage access and on-demand pay solutions. Furthermore, 91% regard their HR teams as essential to their business strategy, highlighting the importance of integrating HR into overall business management.
Embracing AI in the Workplace
Additionally, 80% of business owners view artificial intelligence (AI) as a valuable opportunity and have provided training on AI applications in the workplace. As the work landscape evolves, these insights can help business owners strategically adapt to current challenges.
About isolved
isolved is recognized as a leading provider of HCM technology, offering high-quality software and services designed for HR, payroll, and benefits professionals. Their comprehensive solutions—ranging from talent acquisition to workforce management—are utilized by over 7 million employees and 177,000 employers across the country to enhance productivity and decision-making while minimizing risk. The isolved People Cloud™, an interconnected platform, aims to automate the entire employee experience, enabling organizations to engage and empower their talent effectively. Visit isolved's website to learn more.
Media Contact
Christine Allen, Director of Communications
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603-743-4534
Frequently Asked Questions
What does the isolved survey reveal about business ownership complexities?
The survey highlights that many business owners find owning a business increasingly complex, with employee relations emerging as a significant challenge.
How does employee experience impact business revenue?
Poor employee experience can lead to understaffed businesses and insufficiently skilled employees, ultimately resulting in lost customers and revenue.
What are the primary concerns of business owners regarding their workforce?
Key concerns include managing compensation costs, retaining top talent, and recruiting skilled employees amidst evolving expectations.
How do business owners perceive the role of HR?
A vast majority of business owners—92%—believe HR plays a vital role in balancing employer and employee needs effectively.
What initiatives are business owners considering for employee wellness?
Many business owners are inclined to provide financial wellness benefits, such as flexible pay arrangements, to support their employees' overall well-being.
