Organizations have lost business due to being understaffed or a lack of skills in the last 12 months!
Nicolas BEHBAHANI
Global People Analytics Leader | Future of Work | Leading Global HR Analytics, Driving Business Growth
?? In the last 12 months, majority of business owners have lost business or customers due to being understaffed.
? They have lost business due to not having the employees with the needed skills.
??But almost all business owners would like to implement staffing reductions to streamline operations and cut costs in response to economic downturns or financial pressures.
?? More than 80% of transportation and logistics, agriculture, wholesale and distribution, and nonprofit organizations plan to reduce their employee headcount. , according to a new interesting research published by isolved using data ?? from a survey over 1,000 business owners of varying sizes in the US, conducted in June 2024.
?Owning a business presents challenges, particularly in managing employee relations
Researchers found that 52% of business owners say that owning a business has become more complicated in the last five years.
In the top reasons of these challenges two are related to employees:
1?? Increased employee relations challenges
2?? Difficulty recruiting top talent.
?The top concerns about workforce: Compensation & Retention
Researchers observed that when prompted to pinpoint the primary concern regarding their workforce, business owners emphasized compensation and the retention of top talent.
?? The foremost concern was managing compensation costs (24%), with retaining top talent (23%) and recruiting top talent (21%) closely following.
?Business losses can occur from a shortage of skills and inadequate staffing
领英推荐
Research noticed that in the past year, 57% of business owners have experienced a loss of business or customers due to understaffing, and an equal percentage have faced losses due to a lack of necessary skills among employees.
These industries have suffered from both understaffing and a skills deficit within their workforce.
?Headcount reductions are planned for the next 12 months
Researchers noticed that more than 80% of transportation and logistics, agriculture, wholesale and distribution, and nonprofit organizations plan to reduce their employee headcount.
Also 59% of business owners plan to reduce non-employee (i.e., contractor and freelance) spending and 51% plan to reduce full-time employee headcount.
?? ???? ???????????????? ????????:
This interesting research highlights the critical role of the workforce in business outcomes. The trend towards headcount reductions across all sectors in the next 12 months is worrisome. However, as the research shows, organizations still require talent and their skills to succeed in the market and secure a competitive edge over other companies.
?? Thank you isolved researchers team for these insightful findings:
?? Follow me as a LinkedIn Top Voice on LinkedIn (+40 000), and click the ?? at the top of my profile page to stay on top of the latest on new best?HR, People Analytics, Human Capital and Future of Work research, become more effective in your HR function and support your business, and join the conversation on my posts.
???Join?more than 19,000+ people and subscribe to receive my Weekly People Research
Everyday, I share a new research article about?People Analytics, Human Capital, HR analytics, Human Resources, Talent,…
Human Resource Professional | MBA | Coporate Recruiting Professional- ASA | Ex-Wirtgen Group,A John Deere Company
1 周Very informative! Business leaders are at a crucial turning point. The research reveals a common yet counterproductive cycle, cutting staff to save costs while inadvertently losing business due to skill gaps and understaffing. A more strategic approach is to invest in your people - upskill and reskill employees to develop the capabilities needed internally, and leverage technology to enhance human potential. This approach isn’t just about immediate cost savings; it’s about building a resilient workforce that can adapt and thrive in the future. The best talent strategy is proactive, sustainable, and focused on long-term growth. Thank you for sharing!
Very insightful post, thanks for sharing Nicolas BEHBAHANI! It's clear that while businesses aim to streamline operations, reducing headcount without addressing skill gaps can have a detrimental impact. To balance cost-cutting and talent retention, organizations need to invest in upskilling their workforce, fostering a strong employer brand, and creating a culture that prioritizes continuous learning and employee engagement. Focusing on people can help ensure that businesses not only survive but thrive amidst economic pressures. What strategies do you think are most effective for retaining top talent in such uncertain times? #WorkforceStrategy #TalentRetention #Upskilling #BusinessSuccess #HRAnalytics
Industry Veteran | Exploring Future of Work | Great Manager’s Coach & Mentor
2 周This is scary, Nicolas BEHBAHANI Thanks for highlighting. ?? ??♀? Navigating the challenges of COVID, Recession, & the resulting anxiety + depression wasn’t in any of our textbooks. Managing business or HR today demands a unique set of competencies & more importantly a brave heart. ?? ?? Compensation, Hiring, & Retention all come with their costs, but the real challenge lies in balancing these with the need for skilled talent. ?? Organizations losing business due to being understaffed or lacking skills is a stark reality. Yet, the push towards headcount reductions to cut costs is equally pressing. It’s a tightrope walk, but one that requires innovative strategies & a focus on people - “Being Human” ?? Kudos to the isolved team for shedding light on these critical issues. ?Let’s prioritize our people, leverage technology, & foster collaboration (Not War) to navigate these turbulent times and build a resilient future.
Branch Manager at Unilever Nigeria plc
2 周Hmm awesome piece! Thanks for always delivering sir
CEO | Global Business Advisor | People Centric Solutions | Turning Sustainable Visions into Operational Realities | Delivering Growth Through Innovation and Collaboration
2 周I wonder how much is being understaffed Nicolas BEHBAHANI. We can be quick to judge costs being too high, but slow to recognise the opportunity cost associated.