Despite the current economic climate, small business owners still feel able to compete thanks to proactivity.
ADP Canada’s Workplace Insights Survey series continues to analyze work sentiment trends in order to better support businesses in successfully addressing the needs and expectations of their employees. In the latest Workplace Insights Survey, conducted by Maru Public Opinion, the survey delves into the current sentiment of small business owners on navigating through a more challenging economic background.
- The survey findings paint a nuanced picture of small business owners’ sentiments about the Canadian economy, with just over half (53%) reporting feeling negatively and close to a fifth (19%) citing the current economy as a primary source of stress. However, 47% still feel optimistic, despite the current economic climate.
Key findings on the challenges of small businesses were:
- Recruitment: Nearly a third (32%) of small business owners are currently facing challenges in finding employees, highlighting the importance of proactive retention strategies.
- Retention: Over one-in-five (21%) of small business owners cite having to let employees go due to inflation.
Proactive measures taken by small businesses
Of those who reported finding it difficult to attract and retain talent, 69% said they were taking action to combat it, including:
- Compensation: 29 per cent have offered higher wages.
- Flexibility: Over a quarter (26%) have offered flexible work models to improve employee retention.
- Benefits: A fifth (20%) have increased benefits (i.e., more vacation, perks).
The intricate dance between talent acquisition and retention becomes apparent, with small business owners navigating between economic constraints and the importance of retaining skilled employees. Innovative approaches, such as offering higher wages and flexible work models, underscore small businesses' commitment to adaptability and employee satisfaction.
Notably, almost half (49%) of small business owners report not feeling worried about their ability to compete, highlighting a resilient spirit amongst entrepreneurs. Further, 6-in-10 Canadian small business owners report taking action to ensure operational needs are still met such as:
- 19 per cent of respondents have tried to make their processes more efficient, aiming to optimize productivity and reduce costs.
- 17 per cent have become more personally involved in the end-to-end running of the business, indicating a hands-on approach to managing operations.
- 15 per cent have embraced innovation by hiring individuals with skill sets previously unexplored, demonstrating a commitment to adaptability and growth.
Cultivating a strong workplace culture and loyalty
Beyond monetary incentives and compensation, small businesses are recognizing the value of fostering a positive workplace culture. Strong relationships between owners/managers and employees, along with a supportive team environment, emerge as key drivers of employee engagement and satisfaction. Some benefits of working at a small business might include a closer relationship with management (42%), a stronger team bond (41%), and a better work-life balance (40%).
Diving deeper into the benefits of working at a small business reveals that workplace culture plays a significant role in employee satisfaction and retention. A supportive and inclusive environment, as well as strong colleague relationships and a focus on work-life balance, fosters a sense of belonging and loyalty among employees.
Resilience amidst a challenging economic landscape
Not only do these findings shed light on the resilience, adaptability, and entrepreneurial spirit that define small businesses in Canada, but they also demonstrate small business’s strong ability to continue their evolution successfully. Through proactive measures, strategic investments, and a strong commitment to fostering a supportive workplace culture, small businesses are laying the foundation for long-term growth and success.
Survey Methodology
These results are from a Maru Public Opinion study that was undertaken by its sample and data collection experts at Maru/Blue on March 12-14, 2024, among a random selection of 756 Canadian small business decision makers and employees who are Maru Voice Canada online panelists. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3.6%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.
