isolved Survey: One in Three Business Owners Cite Employee Relations as a Key Factor in Increased Complexity of Business Ownership Over the Last Five Years

New Report Reveals How Poor Employee Experience Leads to Lost Customers and Company Revenue

CHARLOTTE, N.C., Sept. 4, 2024 /PRNewswire/ -- isolved®, the most-trusted HCM technology leader, today announced the findings from its Business Owner Imperative: AI, EX & HR Optimization Survey, which explored how business owners are collaborating with HR, doubling down on the employee experience initiatives and leveraging AI to maintain a motivated and productive workforce. Notably, the survey found that of the more than half (52%) of business owners who believe it's become increasingly complicated to own a business in the last five years, one in three (37%) noted employee relations challenges as the top reason.

Further, the survey highlights a harsh reality: the majority (57%) of business owners have lost business or customers because they were understaffed or their employees lacked essential skills. This revenue loss may be a direct result of neglecting employee experience initiatives that attract and retain the top talent necessary to keep businesses properly staffed and successfully meet customer expectations.

Managing a workforce today is not an easy task. Business owners are grappling with maintaining a positive workplace culture, managing evolving employee expectations and limiting staff reductions despite economic uncertainty. When asked to identify the biggest concerns they have about their workforce, business owners pointed to (1) keeping compensation costs under control, (2) keeping top talent and (3) recruiting top talent. While data from isolved's fourth annual HR Leaders report shows 76% of HR leaders don't see employee expectations as out of control, 55% of business owners disagree and feel that employee expectations regarding the employee experience have escalated.

"Business owners and HR leaders are misaligned in their understanding of employee expectations, requiring more meaningful dialogue on the delicate balance of employee needs and business realities," said Amy Mosher, chief people officer at isolved. "By leveraging data-driven insights and collaborating with HR leaders, business owners can develop and maintain a positive employee experience to foster a thriving workforce and successful business."

Business owners overwhelmingly (92%) believe that HR can successfully balance the needs of the employer with the needs of its employees. Despite the multitude of challenges business owners are facing, strategic HR management can help stabilize this dynamic and create employee experiences that matter for all stakeholders.

Additional key findings include:

• An overwhelming 87% of business owners report that concerns over their employees' wellness (e.g., financial, emotional, social, occupational, spiritual, intellectual, environmental) have increased over the last 12 months.
• In the next year, 59% of business owners plan to reduce non-employee (i.e., contractor and freelance) spending and 51% plan to reduce full-time employee headcount.
• Nearly 84% of business owners believe that the majority of their employees live paycheck to paycheck. In response, 92% are willing to offer access to financial wellness benefits, including more flexible pay arrangements, such as earned-wage access or on-demand pay.
• Ninety-one percent of business owners see their HR teams as a strategic part of their business.
• Eighty percent of business owners see artificial intelligence (AI) as an opportunity and have provided training on AI in the workplace.

For more information on employees' expectations and employers' opportunities, download the Business Owner Imperative: AI, EX & HR Optimization Survey.

About isolved 

isolved is the most-trusted HCM technology leader, providing the best combination of software and services to meet the needs of today's People Heroes – HR, payroll, and benefits professionals. From talent acquisition to workforce management to talent management, our solutions are delivered directly or through our HRO partner network to more than 7 million employees and 177,000 employers across all 50 states – who use them every day to increase productivity, accelerate decision-making and ensure performance, while reducing risk. isolved People Cloud™, our intelligently connected platform, automates the entire employee experience by design, so that organizations can engage, empower, and energize their talent while freeing their People Heroes to exceed their goals and grow their careers. Visit https://www.isolvedhcm.com/ to learn more.

Media Contact
Christine Allen, Director of Communications
[email protected]
603-743-4534

SOURCE isolved

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