Small businesses in the UK are facing a quiet crisis, which is mostly going unnoticed. A growing number of SME employees are taking on second job to keep afloat in the face of rising costs of living.
In a recent LinkedIn survey that I conducted, 70% of small business owners (those who have fewer than fifty employees and a revenue under PS10,000,000) reported seeing multiple team members take on additional jobs outside their 9-5 employment. The employees take on extra work in order to cope with rising personal costs and high living expenses.
It is not an option to ignore this silent crisis; a decisive, empathetic and compassionate leadership is essential.
Second-job trends are happening in all sectors
Unexpectedly, this survey received responses from a wide range of industries, including business services, technology, and early childhood support. This shows that the problem is not limited to lower-paid industries.
Staff in the early years (a sector that is lower paid) play an important role in influencing the learning of young children. These workers could be fatigued by juggling two jobs, and the quality of their care may suffer. This can have long-term effects on our children and families.
In the high-pressure and high-salary technology industry, there can also be a lot of demands. If a developer spends evenings working on delivery rounds, it is likely that their daytime focus will be affected. This could harm the industry.
Burnout and rising wage pressure
The second-job trend goes beyond financial stress. This trend hints at deeper problems in how businesses manage wage pressures, employee satisfaction, and the threat of burnout.
As business leaders, we should be aware that productivity is affected by this. Our employees’ focus and ability to perform their primary roles will be negatively impacted when they devote their time and effort to a secondary income stream. It can increase the risk of mistakes and reduce overall efficiency. The impact on the team’s morale is also not to be understated. When a large portion of your staff is looking for second jobs in order to pay their bills and cover their basic living expenses, it can cause unrest and undermine the small business.
There are some glimmers in the leadership that is emerging despite these worrying data.
Two-job working is a trend that has harmed business resilience
Leaders of small businesses, and especially those in charge of them, are faced with a major challenge. In this economic climate, the traditional methods of employee support might not be effective.
Leaders should reevaluate employee strategies when financial pressures force their team to seek out second income streams. The trajectory of the second-job trend in the next six to 12 months could be serious without intervention.
If you don’t address the root causes, it could lead to a significant deterioration in company culture and overall performance. It can also reduce the resilience of your business.
Businesses can struggle to retain and attract talent. This leads to higher recruitment costs and the loss of valuable expertise. Overworked employees can also affect the quality of products and services.
In the end, a small company’s reputation as a reliable employer may be damaged. This could make future hiring of talented and strong staff more difficult. This is not just a personal matter; it is a business risk that needs to be addressed with care and a sense of urgency.
You can find solutions that go beyond raising wages
There are some glimmers in the leadership that is proactive despite these alarming statistics. I’ve had many conversations over the years with business owners who have been navigating through this difficult time. I have heard many business owners tell me how important it is to be open and honest with their team. It’s about creating an atmosphere where employees feel understood and heard, which is a powerful way to ensure loyalty and stop feelings of isolation.
Some business owners go beyond talking and re-evaluate their entire compensation package to ensure that they remain competitive. They explore benefits like enhanced pension contributions or healthcare insurance. Some businesses focus on internal advancement, providing upskilling programs that allow employees to earn more within the company.
It is impossible to overstate the importance of having a supportive culture in your company. An environment that values empathy, open communication and genuine concern for the wellbeing of employees can be a powerful buffer against financial stress. Regular check-ins and employee assistance programmes that offer financial guidance can help create a supportive workplace.
Do not ignore the quiet crisis
The onus is ultimately on the leader of the company to take a proactive approach to this trend. They must commit to working together to find solutions that will positively impact the employee as well as the health and sustainability of their business.
Ignoring the quiet crisis of today is not an option. A leadership that is decisive, empathetic and compassionate is essential to navigate these turbulent economic waters.
