Small business owners: we’ve got good news and bad news. Which do you want to hear first?
Note: because we haven’t quite perfected our blog response technology, we’re going to go ahead and start with good news.
Overall, jobs are still up in 2022, even with all the rumors and speculation of a recession looming over our heads.
Now onto the bad news…
Most of those jobs are with large businesses (companies with 500+ employees).
Year-to-date, small businesses have had to cut more than 360,000 jobs. In May of this year alone, small businesses ended up cutting more than 91,000 employees.
That means business owners are likely taking on more work to cut costs—sacrificing their personal time and mental health.
If that sounds like you, you’re not alone.
Why are small businesses bearing the brunt of today’s tight labor market?
Great question. For starters:
- Inflation is at its highest since 1981.
- Prices on everything from supplies to software have increased across the board.
- People are spending less while the costs of running a business continue to increase.
- Last year’s frenzied job market has led to increased labor costs as workers gain more bargaining power.
That last point is especially important for small business owners. After all, if growth is your goal, you need high-quality, well-trained, and happy employees as your point of contact with both new and existing customers.
However, the rising cost of hiring staff for critical frontline roles goes well beyond higher salaries. You also have to consider:
- And workplace integration
Because of this, it can take more than six months to break even on your investment in just one employee. That’s a tall order in today’s market, which is why even mid-size employers have begun rescinding job offers to combat costs.
Add all of that up, and here’s what we end up with:
Inflation + rising labor costs + increased expenditures = longer hours and reduced profits for small business owners struggling to fill employment gaps.
That’s some scary math—even for those of us who breezed through pre-calculus in high school. So, how can small business owners find the help they need without sacrificing their margins?
By investing in frontline support.
Using frontline support to fill in employment gaps.
Successfully navigating economic uncertainty is all about knowing where to cut costs and where to reinvest. And because your frontline team is responsible for capturing leads and retaining customers—they’re the one area of your business that’s guaranteed to deliver a significant ROI.
Fortunately, the right virtual receptionist solution can do all this (and more) for a fraction of what it costs to hire, train, and retain new full-time employees. You can rely on services like Ruby to:
- Greet your callers and online customers
- Transfer calls to your team
- Answer FAQs
- Gather insights about the people you serve
- Onboard new clients
- Schedule appointments
- Qualify new leads
- Make lasting first impressions
- And much more!
Amidst all this uncertainty, one thing is certain: the market will change. Sooner or later, businesses of all sizes will be able to find the staff they need without breaking their budget. In the meantime, Ruby can support your business growth by delighting customers and helping you capture more opportunities.