George Cohon, renowned businessman and founder of...
Inflation rates continue to dominate the headlines of all major Canadian newspapers, and 16% of the population does not believe that the target of 2% inflation will be reached until 2027. Many businesses feel that their sales growth will continue to be weaker than it was prior to and during the pandemic, and they are concerned that demand for their products and services will continue to decrease as cash-strapped customers slow their discretionary spending due to the cost of living crisis.
It may not feel like the right time to be considering taking on more staff at the moment, but recent research shows that workers are now feeling more confident about their ability to retain their job or secure a new one now than they have in recent months. This confidence may relate to the fact that cash-strapped businesses have increased their demands on their staff, who are now in a position of power when it comes to seeking pay raises and other types of benefits.
For businesses whose staff have had to go the extra mile during this period, business owners may consider relaxing their workload by recruiting additional staff to take up the slack. Although this will not directly increase the take-home pay of existing employees, it is a strategy that is worth considering, particularly if existing employees are stressed or overworked, absenteeism rates are rising, or the risk of staff turnover is becoming a concern.
There is clearly a balance to be struck between paying existing staff more money to take on extra hours or additional responsibilities, or relaxing their job descriptions and hiring extra staff to do the work that they are unable to perform during their standard working hours.
Franchise owners should consider the needs of their particular business and investigate all options for maximizing sales or service output. This might include bringing in temporary staff to allow loyal employees to take vacations without creating a long-term financial commitment to additional people, or paying bonuses to those who regularly go above and beyond the call of duty.
It is essential that business owners value their dedicated workforce and find appropriate ways to reward and incentivize them without overworking them or seeing them quit due to stress and burnout. These efforts can help ensure that appropriate measures are put in place to enhance corporate culture and profitability.