Navigating the New SMB Workplace

• Businesses have been faced with unprecedented challenges and opportunities since the
  COVID-19 pandemic began. These shifts have dramatically impacted the SMB workplace
  and workforce.
• SMB Group’s SMB Directions for the Future of Work survey study examined this topic in detail.
  In November, 2021, we surveyed 736 decision makers and influencers in SMB (3-1,000 employees)
  and mid-market (1,000-2,500 employees) organizations to understand how SMBs are reshaping
  workplace and workforce practices to meet these challenges, and how technology factors into
  their plans.
• Here, we share key highlights about key SMB staffing and HR trends. For the sake of
  brevity, we refer to the entire sample as “SMBs.”

Top Human Resources Challenges for SMBs

What are the top three human resources/staffing challenges your business faces?

Two thirds of SMBs Worry About the Talent Shortage

SMB Have Ambitious Hiring Plans For Employees and Contractors

Plans to hire internal/salaried employees and external contractors (all SMBs)

Hiring Plans Differ Significantly by Industry

SMBs Have More Job Openings Than Usual … but Most Are Confident They’ll Meet Their Hiring Goals

SMBs Are Developing Strategies to Support More Workplace Flexibility

Which of the following best describes your company’s actions to support more flexible workplace options?

SMBs Are Adding New Perks to Aid Employee Recruitment and Retention

What changes have you implemented, do you plan to implement, or have no plans to implement?

90% of SMBs that have implemented these changes rate them as extremely/somewhat valuable in improving employee recruitment and retention.

Most SMBs Now Have A Remote Work Program

Remote Work Usually Has a Positive or Neutral Effect on Retention and Productivity

SMB Workplace Locations Will Remain In Flux

SMBs Seek Talent From Many Sources

Which of these methods does your company use to source talent?

SMB Adoption of HR Solutions

Which human resources-related solutions does your company use, plan to use, or have no plans to use?

There are Clear Breakpoints for Adoption of HR Solutions

SMBs Are Using Technology to Automate Tasks and Replace Human Labor

Which of the following has your company done, does it plan to do, or have no plans to do?

Perspective

• Over the past couple of years, change has arguably been the only constant—for both businesses
  and employees.
• As the balance power shifts from employers to employees, SMBs have had to adjust, recalibrate and provide employees more flexibility to recruit and retain the talent they need to survive and thrive. In the early part of the pandemic, many actions were reactive. As we move through it, SMBs are getting more strategic about using HR-related solutions to help them meet hiring and retention goals, and are changing their business models to provide employees with more choice about where, when and how works gets done.
• SMBs are also putting automation to work to automate tasks and replace human labor—enabling their employees to spend more time on higher value, more engaging work. Larger SMBs are leading the charge, but this trend will accelerate and trickle down to smaller companies as the benefits become more self-evident, and as technology solution vendors add new capabilities into their offerings.
• As we move ahead, SMBs will continue to face many challenges to attract and engage employees and
  contractors—and be ready for new, unexpected twists and turns that could impact their goals. By putting employee experience at the center of their business strategies and models, and using technology to better engage and empower workers, SMBs will be much better equipped to meet their staffing and business goals.