Inflation rates are making frequent appearances in major Canadian newspapers, with 16% of the population doubting that the 2% inflation target will be met until 2027. Many businesses anticipate continued weakness in sales growth compared to pre-pandemic levels. They worry that demand for their products and services will further decline as financially strained customers cut back on discretionary spending due to the cost of living crisis.
While it might not seem like the ideal time to expand your workforce, recent research suggests that workers are increasingly confident about job retention and finding new employment opportunities. This newfound confidence could be attributed to heightened demands placed on employees by financially constrained businesses. As a result, workers have more bargaining power when negotiating pay raises and benefits.
For businesses whose staff have gone above and beyond during this period, owners may consider lightening their workload by hiring additional staff to ease the burden. While this won’t directly impact existing employees’ take-home pay, it’s a strategy worth considering, especially if current staff are feeling stressed or overworked, absenteeism rates are climbing, or turnover risk is becoming a concern.
There’s a delicate balance to strike between increasing pay for existing staff to handle extra duties and hiring new employees to manage tasks beyond regular hours.
Franchise owners should assess their business’s specific needs and explore all options for maximizing sales or service output. This could involve hiring temporary staff to cover vacations, offering bonuses to employees who consistently exceed expectations, or exploring other innovative solutions.
It’s crucial for business owners to appreciate their hardworking employees and find ways to reward and motivate them without risking burnout or turnover. These efforts are essential for fostering a positive corporate culture and enhancing profitability.