New Challenges Force Businesses To Face Constant Uncertainty

Businesses have always faced challenges to growth and stability. But the unpredictable events of the past 5 years have led many leaders to a near constant state of crisis management.

The Speed of Change is Astronomical

Though we may not be living in a world of flying cars (yet), we are still living in a time of dramatic technological advancement. In the last 25 years, the world has been introduced to smart phones, 3-D printing, virtual currency (including Bitcoin), digital books, self-driving cars, instant videos, and digital assistants, not to mention medical innovations including gene editing and robotic hearts.

Though these innovations help solve everyday problems, the speed of change is making it difficult for businesses to keep up. Small businesses must contend with the cost of change disrupting their bottom line, medium-sized business must address how to roll out changes to a larger employee base, and larger businesses have to determine how to roll out changes swiftly to a massive workforce. Whether they like it or not, businesses are facing a need to evolve or die.

On top of this, those technological advances are opening businesses to never-before-experienced risks and leaving major gaps in insurance coverage. If risk managers and business owners aren’t aware of the exposures, they don’t know what insurance is needed to properly protect them.

Talent Management Ebbs and Flows

In just the last few years, unemployment has gone from record highs to record lows. When the COVID pandemic caused massive business and factory shutdowns, companies were forced to lay off thousands of employees. Then, within a few years, the quit rate reached a 20-year high as the Great Resignation hit businesses of all shapes and sizes. Now the relationship between employers and employees has been flipped on its head.

Before the pandemic, businesses were production oriented, with employees generally seen as expendable. Though there was a slow shift occurring in the minds of business leaders, with many starting to focus on well-being, improved benefits and attracting and evolving talent, it wasn’t until the pandemic struck that a rapid change was required. Now, employees have more control over their work experience, contributing massively to the Great Resignation.

Though the uncertainty of the pandemic led to some employees delaying retirement or looking for a better job, businesses are now seeing those same employees resign en masse. Add in employee burn out, a shift of priorities to better balance work and personal lives, and a higher demand for autonomy and remote work, and employees are now calling the shots in where they work and under what circumstances. Now the effects of the Great Resignation are being felt as companies experience lower productivity and employee morale, plus increased pressure on existing employees, therefore increasing the likelihood of employee burnout. This is a dramatic difference from even five years ago, leading human resources and hiring managers to scramble to adjust (again).

World Events Impacting Local Businesses

Global events are creating a domino effect, one impacting businesses of all sizes, from local businesses to global organizations with offices in multiple locations. When the pandemic hit, factories were forced to close, leading to supply-chin disruptions that are still impacting businesses and consumers to this day.

Now with a war leading the headlines in newspapers around the world, businesses are seeing even more disruptions. War and pandemic exclusions, previously never even considered, are popping up, creating headaches for business leaders. On top of that, sanctions from the war are impacting businesses across the globe as reduced exports, lower corporate profits and rising energy costs put pressure on businesses and profitability.

All of these factors have contributed to massive inflation as well, adding more stress to businesses. Coupled with efforts to invest in people and businesses are feeling financial pain on all sides.

As the world grapples with these constant changes, businesses are facing never-ending pressure to keep their employees happy, maintain a strong bottom line and evolve to meet the needs of their clients. The constant unpredictability is weighing on leaders, with many feeling unsure how to move forward as an organization.

Create Stability Through Relationships

Facing these uncertainties doesn’t mean dooming a business. And though many leaders feel they must have the solution to every problem they face, sometimes the solution actually means relying on others – developing relationships with trusted people who can steer you in the right direction.

Insurance is no different. You shouldn’t be expected to be an insurance expert when you’re already an expert in your field. A trusted insurance expert can guide you through the uncertainties, offering solutions that aren’t so obvious to create a strong, steady pipeline of employee applicants, to make sure new technological innovations don’t leave you exposed or outdated, and to help your business address how world events can impact your business and employees.

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