Stressed and confused: Xero research finds a ‘silent epidemic’ among small business leaders
Almost half of respondents in a new Xero report said managing employee processes and compliance is taxing on their mental health.
Xero research has uncovered what it calls a ‘silent epidemic’ of stressed out employers.
Almost half (48%) of respondents in the Changing world of work report said managing employee processes and compliance is taxing on their mental health, while 56% said that managing employees in an ever-changing regulatory environment is stressful and confusing, and 37% percent worry staff will be paid incorrectly due to confusing payroll regulations.
The difficulties are of course exacerbated by COVID-19. The report noted that 27% percent of employers say managing business disruptions caused by COVID-19 continues to be their challenge, with a majority (68%) of employers facing staff shortages, late cancellations due to sickness or personal issues and staff confusion over rostered shifts.
“The challenge of managing employee processes has led to a ‘silent epidemic’ in worsening mental health of many small business owners,” said Xero chief growth officer Chris O’Neill.
It comes as employees reassess their values, needs and demands from their work. Their top three work concerns were work-life balance, personal health and wellbeing, and job security.
Despite low unemployment figures, the ‘great resignation’ may indeed be a reality — one-third of employees in the study predict they’ll leave their job within the next 12 months. ‘Management’ was the top reason workers quit, followed by low pay and a lack of career progression opportunities.
When it came to choosing a job, their top three priorities when choosing a new one were pay and bonuses, flexibility of hours and organisation values and the potential to attain new skills and qualifications.
“It was already hard enough to run a business before one of the greatest workplace disruptions ever,” said Anna Curzon, chief product officer at Xero.
“The changing world of work, accelerated by the pandemic and ongoing political disruption and uncertainty, is starting to take its toll on many.”
Xero surveyed 307 small business leaders with hourly paid employees and 1157 adult employees who are paid hourly in Australia for the study.
“Getting payroll wrong is a costly mistake that can destroy a business and have serious legal consequences,” O’Neill added.
“Small businesses can’t always afford a team of advisors to help them figure all of this out. And now, many are having to pay higher wages to secure staff, which is putting pressure on them financially as they also grapple with inflation, price increases and supply issues.
“These realities are layered on top of longer-term technological transformation, inflation, tightening monetary conditions and the ongoing political disruption and uncertainty from major global events like the war in Ukraine.”
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