Similar to Q4 2021, inflation, staffing shortages and supply chain disruption are the top three concerns of small and mid-sized businesses in Q1 2022. In fact, nearly two in three businesses said inflation is placing the biggest burden on their operations Further, over half of the respondents (53%) indicated they were 6-20% short staffed. However, employee headcount continued to show growth (38%), slightly outpacing Q4 2021 (35%).
RESPONSES TO HIGH INFLATION
In response to “What is your organization doing to combat the impacts of inflation?” almost 70% of SMBs said they are increasing prices, with 19% of them implementing price increases of more than 10%. Additionally, 37% are implementing cost-cutting/cost-control strategies, while 30% are investing in technology to improve efficiencies.
COMBATING THE GREAT RESIGNATION
As The Great Resignation continues to plague organizations across the country, SMBs are implementing various strategies to combat the mass exodus. Notably, 44% indicated they were enhancing their employee compensation packages and/or their health and financial benefits packages. Additionally, 40% have supplemented their staff with independent contractors.
STRATEGIES TO IMPROVE BUSINESS GROWTH
When asked to indicate what areas their company will focus on to increase business growth over the next 12 months, respondents indicated increased pricing, up from 23% last quarter, adapting operations and technology investments as their top three priorities.
STRONG CONSUMER DEMAND IS A DRIVING FACTOR IN THE POSITIVE OUTLOOK OF MAIN STREET BUSINESSES
Main Street businesses are holding steady with profit and revenue growth carried over from Q4 and continue to report high growth over previous 2021 quarters. Additionally, fewer companies are indicating revenue and profit declines.
*The survey, which was conducted between March 22 and April 4, analyzes responses from more than 1,400 Main Street businesses with fewer than 100 employees in 27 industries across the U.S.(Not all those surveyed in the CBIZ Main Street Index are CBIZ clients.) The index assesses a range of timely trends, including business sentiment, staffing needs, areas of growth and decline, and adapting to a changing workplace.