We recently outlined the biggest HR trends for 2020, noting how HR’s role is shifting (from transactional to advisory), how businesses are adapting (emphasizing employee experience and workplace flexibility), and what challenges are looming (hiring and skills development). But what are the trends and challenges facing small employers specifically?
Recruiting Remains A Major Challenge
The Goldman Sachs/Babson Voice of Small Business in America 2019 Insights Report found that hiring and retention are the top challenges reported by small business owners, with 76% of respondents indicating difficulty. Additionally, nearly two-thirds are failing to find the skills they need within the applicant pool – a 50% increase from 2016.
Compliance Is (Still) A Growing Burden
The Goldman Sachs report also found that regulatory compliance imposes a significant burden on small business owners, with labor laws the most commonly cited challenge. Over 60% say regulations negatively impact growth. Respondents also say they spend six hours a week on compliance-related tasks (or over 300 hours a year) – again, an increase from previous years. And the vast majority (85%) of small business owners handle compliance themselves.
U.S. Trade Policies Are Hitting Small Business Owners
The Fall 2019 Bank of America Small Business Owner Report says, “Over the past year, more business owners say they have been impacted by U.S. trade policies.” In fact, nearly half (44%) report feeling the effect of tariffs in the cost of goods and supplies and higher customer pricing. In short, tariffs are increasing the cost of doing business
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with HR administration, benefits, payroll, and compliance. To learn more about our ability to create a strategic HR function in your business that drives business growth potential, contact us today.