As Canadian provinces begin entering Stage 3 of reopening, they are also embarking on another promising economic phase: rehiring. A new survey conducted by Wagepoint, creators of online small business payroll software, found that 58% of small businesses that laid off staff due to COVID-19 are now planning to rehire in the next three months.
Wagepoint said in a release that the results of this survey are supported by its own database of more than 12,000 small businesses. The online payroll company found layoffs in March represented 60% of layoffs this year, but by the end of June, 55% of those employees had been rehired, an upward trend that continued into July.
“Small businesses employ more Canadians than any other part of our economy,” said company CEO Shrad Rao. “When they got hit hard by COVID-19, we all got hit hard.
“But small businesses are built on entrepreneurial optimism. They’ve always fought against the odds, and now we’re seeing them do it again.”
The release noted that when COVID-19 first struck, 60% of Canadian small businesses were forced to make rapid changes to their workforce. A breakdown of how those small businesses responded included the following:
- 40% reduced headcount (either temporarily or permanently)
- 44% reduced hours or compensation
- Firms with 10 or more employees were the hardest hit (70% reduced either headcount, hours, or compensation)
- Firms with fewer than 10 employees were still impacted, but less so (57% reduced either headcount, hours, or compensation)
As Canada’s small businesses continue to overcome the unpredictable nature of economic fluctuation and recovery, similar patterns of furloughing and re-hiring are likely to be seen in the coming months and potentially years.
Findings from the small business survey also suggest a growing awareness of the need for speed and flexibility in payroll.
It notes that seven in 10 (72%) of small business owners believe payroll is important (on par with sales, invoicing, and general accounting), and two in five of those (40%) that reduced headcount agreed that payroll needs to be flexible enough to accommodate quick changes to their workforce.
Furthermore, over a quarter (26%) of small business owners said paying employees quickly and accurately has taken on a whole new meaning during COVID-19.
