{"id":10040,"date":"2020-12-04T15:22:00","date_gmt":"2020-12-04T20:22:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=10040"},"modified":"2026-02-12T04:56:29","modified_gmt":"2026-02-12T09:56:29","slug":"from-challenge-to-opportunity-how-smbs-can-reshape-hr-for-the-future","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/from-challenge-to-opportunity-how-smbs-can-reshape-hr-for-the-future\/","title":{"rendered":"From challenge to opportunity: how SMBs can reshape HR for the future"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tPeople & Leadership<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tFrom challenge to opportunity: how SMBs can reshape HR for the future\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Laurie\t\t\t\tLaurie McCabe<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

Businesses of all sizes have been confronted by daunting challenges due to the COVID-19 pandemic, but small and medium businesses (SMBs) have arguably borne the brunt of the damage.<\/p>\n\n\n\n

In SMB Group\u2019s July 2020 survey, SMBs: Navigating a Path Forward<\/em><\/strong>, co-sponsored by Sage Intacct, an overwhelming 78% of SMB respondents said that COVID-19 was negatively impacting their business. That\u2019s in stark contrast to our 2019 SMB Digital Transformation Study<\/em><\/strong><\/a>, in which 64% of SMBs said they were forecasting increased revenue growth.<\/p>\n\n\n\n

The pandemic is testing SMB resilience across all functional areas, including of course, human resources and talent management. Many are dealing with extreme staffing volatility: 59% of SMBs have taken one or more actions to trim payroll, and 58% are now planning to bring workers back, hire new workers, increase hours, or increase employee pay. SMBs are facing similar turbulence in contractor\/1099 staffing as well.<\/p>\n\n\n\n

Amidst this unpredictability, businesses cite operating under new social distancing and safety requirements, supporting employees in new, virtual work conditions, and improving employee productivity among their top business challenges.<\/p>\n\n\n\n

SMBs must plan for today and tomorrow<\/strong><\/h2>\n\n\n\n

If you\u2019re like most SMB decision-makers, you\u2019re already making or planning to make changes to handle these unprecedented human resource and workforce management challenges. In our study, 62% of respondents said they were changing the layouts of physical locations, such as offices, factories, and stores.<\/p>\n\n\n\n

In addition, two-thirds had instituted or expanded work-from-home (WFM) programs, and slightly 57% of these companies plan to increase spending to better equip remote workers.<\/p>\n\n\n\n

But to both survive through continuing uncertainty, and to come out stronger on the other side, businesses need to think beyond these types of immediate challenges. With the economy in flux, the entire concept of the workplace changing, and employees\u2019 work style needs and preferences shifting, your business needs to be ready to proactively adjust and adapt.<\/p>\n\n\n\n

The pandemic also exacerbates problems SMBs have always faced in the human resources domain. Before COVID-19, SMBs were already at a disadvantage when competing for talent against larger firms that typically provide better salaries, benefits, and opportunities for career advancement. SMBs also often lack the expertise and solutions needed to build strong recruitment and retention programs.<\/p>\n\n\n\n

At this critical juncture, SMB decision-makers can continue to react and let external forces control the situation. Or they can decide to be proactive and put the expertise and solutions in place that can provide the business with the agility and insights necessary to adapt workplace and workforce strategies to prosper.<\/p>\n\n\n\n

Planning a new way to work for your business<\/strong><\/h2>\n\n\n\n

While all businesses must adapt to this dynamic environment, no two businesses are the same. Yet, some strategic considerations are universal.<\/p>\n\n\n\n

For instance:<\/p>\n\n\n\n