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

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:  

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