Small and medium-sized businesses have a lot to think about, with the well-being of their employees at the top of the list.
With the coronavirus pandemic taking the world by storm, SMBs from one side of the globe to the next are looking for ways to stabilize their organization.
Unfortunately, the pandemic has resulted in an unemployment crisis, with the Labor Department recently reporting 3.28 million claims.
There’s no way of knowing exactly how high unemployment numbers will affect your business, but here are some things to think about:
1. Less Spending
When someone is out of work, they’re less inclined to spend money. Instead, they save what they have for essential needs, such as food, clothing, and shelter.
So, when jobless claims spiral out of control, there’s a greater chance of it impacting your company’s sales.
It’s important to keep a close eye on sales data so you can spot trends and adjust as necessary.
2. Your Company Could be Next
Even if you’ve avoided layoffs to this point, you may have to consider it in the future should your sales begin to drop-off.
Not only is it emotionally challenging to layoff valued employees, but it’ll impact your business across the board. For example:
- Who will pick up the work that’s left behind?
- Will it take a toll on employee morale?
- Will other employees jump ship in search of a more stable opportunity?
3. Access to More Talent
Despite the crisis, you may find yourself in an industry that’s booming. And for this reason, it may be time to hire additional talent to keep up with demand.
When unemployment is high, you have access to a larger talent pool. This allows you to be more selective when hiring, as to ensure that you only bring highly qualified individuals into your company.
There’s never a good time for unemployment to skyrocket, but it happens. When it does, you must have a clear idea of how it’ll affect your business.
With the right strategy in place, you can plan accordingly with the hope of maintaining stability until jobless claims dip.
For more insights on marketing strategy that actually works for small business, connect with Jay Bean, Founder of FreshLime and Small Business Marketing Expert on LinkedIn and Twitter. If any of these tips have helped you or if you have anything to add, please comment below. We’d love to hear from you!