Are You Prepared To Manage Potential Staffing Shortages?
While it may not feel like it to many small businesses who have struggled with lockdowns, New Zealand has been pretty lucky when it comes to Covid – at least, with regards to our case numbers.
At the time of writing this piece, a mere 117 people are in self-isolation and 570 in managed isolation. The majority of these are people that have returned to the country via MIQ.
But these numbers are unlikely to remain manageable if Omicron makes its way into the community. We only need to glance across the ditch at the severe short staffing challenges Australian businesses are facing to see what could be in store.
Business owners can hope for the best. But at the same time, we must plan for the worst-case scenarios to help our businesses survive. How will your business function if your staff are off sick or required to isolate? Do you have a contingency plan in place?
In this blog, we’ll offer insight and advice for small businesses facing potential staffing shortages. Read on to start getting prepared today.
Tips For Managing Staffing Shortages
Experts are warning New Zealand businesses to get set to face high levels of staff absences should Omicron enter the community. Some predict that businesses may lose up to 30% of staff from Covid-related absences, with staffing shortages expected to affect a wide variety of industries.
These staffing issues seem inevitable when we look at what’s happening throughout the world, but that doesn’t have to mean disaster for your business.
With some preparation and flexibility, you can navigate through any staff shortages without losing your mind or your business. Here’s how:
1. Get super organised
If you usually manage your business in a “fly by the seat of your pants” kind of style, now is an excellent time to be a bit more proactive. Think about the workload of you and your staff and highlight the most critical tasks and activities – the things that absolutely must be done daily or weekly to keep your business running.
List these tasks in order of priority and determine how to ensure they keep getting done if you face staffing shortages. Consider who in your team has the knowledge and skill to handle different tasks, and draft a game plan for how you’ll organise these activities in various “what if” scenarios.
Being organised can also mean spending a bit of time taking care of tasks ahead of time. You could spend time now writing and scheduling your social posts or email newsletters for the next few months, so that’s one less thing to worry about when you’re understaffed.
Think about what else can you take care of ahead of time?
2. Outsource and automate
Looking at your lists of tasks, can any of them be automated or outsourced? Things like bookkeeping, payroll, invoicing, email marketing social media marketing can be automated and/or outsourced.
The more routine tasks you can remove from your plate, the more time and energy you’ll all have to pick up any slack that happens due to staffing shortages.
3. Upskill your team
Think about the skill set of each of your employees. Can you cross-train your staff so that more than one person is capable of doing essential tasks? This versatility will add value to your business regardless of staffing shortages. Even if this requires hands-on training or certification, it’s well worth the time and investment.
4. Create team bubbles
If all your employees work together in the same space, it only takes one positive result or close contact notification to put your entire team out of action. However, If you have the capacity to create mini teams within your business, you have a bit of extra insurance.
5. Recruit with an open mind
Having trouble finding qualified staff to join your team? With workers in many industries in high demand, it could be worth prioritising talent and attitude over specific qualifications and experience (depending on the industry, of course).
If you’re hit by severe staffing shortages, having workers to fill positions and do an adequate job may be preferable to having to shut down due to lack of staff.
6. Encourage health and wellbeing initiatives
Keep your staff safe by sticking to health and safety guidelines in your business. Taking extra care with scanning, cleanliness, mask usage, and general COVID-19 guidelines can reduce the risk of your staff getting sick or being identified as close contacts in the workplace and having to isolate.
This applies to both physical and mental wellbeing. It may be tempting to push your employees to work overtime and take on extra responsibilities, but you must balance their health and wellness with the needs of your business. Try to have a plan in place that allows your people to have breaks, days off, and sick days when needed.
7. Reduce hours or services
Many small businesses have survived lockdowns by reducing their operating hours or adjusting their services. This is a valuable strategy to fall back on if you face staffing shortages.
8. Conduct a business impact analysis
A business impact analysis (BIA) is a more structured way of predicting the impacts of a disruption to normal business functions. It gives you the information needed to develop effective recovery strategies.
Consider the consequences of lost or delayed sales, customer loss, or increased expenses like outsourcing or overtime.
You can look at various scenarios that will help you make informed decisions down the line. Ask yourself at what point would it make more financial sense to temporarily shut down than keep going? What are your bare minimum staffing levels? How much profit do you need per month to remain operational? What kind of financial support can you access?
If you’re feeling a little lost about how to approach this, it’s a great idea to sit down and go over the data with your accountant. We are happy to help with your analysis here at Figuration, of course!
9. Get Support
It’s easy to feel isolated as a small business owner. You’ve got the weight of the world on your shoulders and are responsible for not only the health of your business, but that of your staff and customers, too.
At times like this, having a supportive team of experts on your side can make all the difference.
Whether you need help to take care of your bookkeeping and accounting or support with broader business strategy, the Figuration team has your back. We can assist you in making smart decisions to keep your business going even when times are tough.