Business Owners Identify "Employee
Concerns" as Greatest Challenge

Employee concerns was the most common response when mid-Missouri business owners were asked, "What is your greatest challenge?"

A business assessment survey, conducted in February and March 2001 in 10 mid-Missouri counties by University of Missouri Extension business and industry specialists, identifies business owner perceptions about employee issues. It reveals that finding and keeping good employees remains a top business priority—one that should be a key part of every business plan.

Using a short-answer format, business owners expressed their challenges in their own words. Analyzing their responses revealed not only the broad categories of business challenges, such as employee concerns, but also the defined specific issues within each category. The most common employee concern was finding employees.

Analysis revealed that business owners think the lack of job seekers was most often attributed to the low unemployment rate. The unemployment rate for the 10 surveyed counties was 1.4 percent to 4.7 percent, compared to the statewide rate of 3.8 percent. Across Missouri, some unemployment rates are more than 6 percent, with one area reporting unemployment at 9.6 percent.

Another common employee concern was the quality of people seeking employment. Quality refers to knowledge, skills, and abilities the employee brings to the job. When employee attitude is included with knowledge, skills and abilities, workforce quality becomes the second most common reason given for employee concerns and challenges.

When sufficient workers are available, their lack of skills and their attitude are challenging the ability of businesses to get their work done, meet customer expectations, and remain profitable. Responses like "young people not choosing this career path," "no one desires this for full-time," and "lack of work ethic" were the types of responses associated with employee attitude.

Keeping employees once they are hired is the third most common concern. Root causes of keeping good employees include wages, benefits, and the ability of the business to generate the needed revenue to meet employee costs. Some examples of responses include "too many people expect to start at $8—$10" and "rising insurance." This root cause suggests increasing revenue is not offsetting increasing employee costs. It also suggests that high-quality employees are looking for new and better paying jobs.

So, what does all of this mean? As always, issues involving employees are, and will continue to be, a challenge for most businesses. Currently the availability, quality, and costs associated with finding, training, and retaining employees are the primary causes of employee challenges.

And what can be done? There are no easy fixes, no short-term solutions. While reports of lay-offs are becoming increasingly common, these layoffs are not likely to result in skilled, inexpensive workers clamoring to work for you. Finding and keeping quality employees must be one of your business' top priorities and should be a part of your business plan.

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Authored by: Chris Thompson, Business and Industry Specialist, University of Missouri Extension Center
Source: Creating Quality Newsletter, Volume 10, Number 7, July 2001

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