For the last six months, regular strike action has been taking place across the public sectors in disputes over pay and working conditions. With further strikes planned for the months ahead, industrial action continues to dominate the headlines and disrupt all corners of the nation.
For small businesses, strikes can cause all sorts of headaches and disruption in day-to-day operations. With tough legislation on strikes being billed in parliament, let’s take a look at what strikes are, and, for our friends with small businesses, what you need to know about the strikes – including how you can support your employees through these disruptive times.
Who is striking and why?
Employees from a wide range of industries are taking industrial action to demand improvements to pay and working conditions. These employees belong to various unions, and the strikes come after unions have balloted their members and voted for industrial action in response to the cost of living crisis, interest rate hikes and pay not reflecting these economic changes.
Railways and bus services, driving examiners, postal services, schools, hospitals, ambulance staff, border agencies and the civil service are among the sectors affected.
How do strikes impact small businesses?
Staff shortages and loss of business
The rail and bus strikes have notoriously caused mass disruption all over the UK over the last few months. This makes it difficult for employees and employers to get to work and carry on business operations. Service businesses where workers need to be on site, particularly hospitality, retail and nursery care, might be among the worst hit, causing a drop in foot traffic and customers while people are unable to get to their destinations.
Sammie Ellard-King, Marketing Director of Amazing Grace London, shared how his business and staff have been affected during the strike action:
“…due to the rail strikes, our London Bridge venue Amazing Grace has lost x2 full private hire reservations equalling way over £50k lost in revenue. The reservations were for major business Christmas functions, so not only have we lost our revenue, but they’ve also lost the chance to wind down at the end of a busy year and look forward to letting off some steam.
On an employee basis, this has also impacted the staff. We’ve had to shut the site down as we now don’t have enough reservations for the number of staff that was set to be needed. As a result, 12 staff have lost valuable income so close to Christmas, as each one has lost nearly 20 hours of paid work which is really upsetting to us as a business. Whilst we respect the RMT staff striking, the timing of it after last year’s Omicron wave couldn’t have been worse. It’s had maximum impact on both business and staff in what is usually our busiest week.”
Being able to ship products
Where businesses rely on postal services, for example small retail businesses, the postal strikes have caused big problems. Mass delays and missing parcels, particularly in the run up to Christmas, have really affected buyer confidence. When things go wrong, this can lead to poor reviews, mistrust and loss of business.
Ruth Bradford, owner of The Little Black and White Book Project, said the strikes have been ‘crippling’ for her business. She explained:
“The postal strikes are utterly crippling. So far, I’ve been lucky that my customers have been really supportive but sending orders out into the aether having no idea if they’ll get there puts my business on a knife edge. If I have to do widespread refunds, it’ll put me under. Not to mention the fact that orders are down as people don’t want to take the risk so aren’t shopping with small businesses online. After an already tough year, this feels like another nail in the coffin.”
Supply chain disruptions
Strikes affecting travel and border agency staff have the potential to cause massive supply chain disruptions, as is being seen recently with French strikes impacting Channel crossings.
Impact on employee wellbeing
We’ve left this important one until last – because while your employees might be putting on a brave face and trying to roll with the strikes, it can take a huge toll on their wellbeing. Trying to anticipate and plan around travel disruption and school closures is frustrating to say the least. You might find staff need to take leave suddenly in order to juggle unexpected child care, or navigate the challenges of working from home in order to avoid taking time off.
And let’s not forget that the cost of living crisis is affecting everyone. Financial stress is one of the most insidious types of anxiety – when we asked British employees how financial stress affected them in the workplace, the results covered the full spectrum of responses; from mental health difficulties to looking for alternative or additional employment. So be aware that the strikes may also be bringing up issues for your employees too.
Tips for dealing with strikes
The pandemic taught us the value in flexibility, and it really comes into play here. Businesses that are operating a remote, hybrid or flexible model will find it easier to deal with employees working from home. Of course, not every business model can support remote work. This is where planning is key.
Workplace awareness
Keeping an eye on strike dates and disseminating information to employees is very helpful. Plan around these where possible – be an empathetic leader and make room for flexibility where you can.
Business continuity and planning
If you haven’t already embraced digital transformation, using cloud services can provide comprehensive and flexible solutions, allowing your staff to work wherever they have an internet connection. Centralised, cloud-based tools can keep everything on track and transparent so that every employee can get on with their role with minimal disruption, even in face to face and on-site workplaces. The bottom line? Investing in the right technology can make a huge difference for your team and your business.
If your business does involve shipping out products or you’re likely to face disruption because of the strikes, keep your website updated and communicate any updates or changes in order confirmation emails. This helps your customers stay in the loop and manage their expectations, which can go a long way to building trust and strong customer relationships.
When it comes to posting out products, consider switching to a courier or alternatively plan in advance to avoid getting caught in the thick of postal strikes. At Employment Hero, we postponed posting Christmas gifts to our team in December, but according to reports, Santa (a.k.a. our couriers) should be delivering them this week!
Take good care of wellbeing
From being flexible, to having an open door policy and supporting financial wellness, there’s a lot you can do to cultivate a culture of workplace wellbeing. When it comes to wellbeing, yes, employees report that they are seeking financial assistance, but it’s not just about the money. While financial incentives were top of the list in our 2022 Wellbeing Survey, support with mental/physical health memberships, pension contributions and health insurance would also be appreciated. You can also start a conversation about financial wellbeing – after all, talking is the first step.
Another key is to bring empathy into your leadership. Recognise the human beings that make up your staff – don’t just view them as payroll numbers. When led by an empathetic leader, your entire company will benefit. When your employees feel trusted, supported and cared for in their workplace, when they know that their leader is looking out for them, and when they know that if problems surface, they will be handled with compassion and integrity. You’ll have a stronger, more motivated team, with improved performance and productivity and lower levels of stress and absenteeism.
The takeaway? When your employees ask for help, try and meet them where they are.
Final wrap up
Industrial action continues to disrupt day-to-day life and business operations as employees strike to demand better pay and working conditions. But with some planning and consideration, you can take steps to minimise the impact on your small business. After all, today’s preparation determines tomorrow’s achievement.
We know it’s tough out there, especially for small businesses. We want to help you succeed – that’s our mission at Employment Hero. As you think about navigating the year ahead, find out how an all in one, HR software solution can help you!
