As a small-business owner, one of many elements to consider when setting up your company budget is projected employment levels and the necessary staffing that will need to take place to attain your corporate goals and objectives. While factors such as federal government mandates or lending standards on small businesses can influence employment rates, there are also other factors that can impact employment.
Economic Factors
National job growth, recessions and the ability to look for employment could affect your worker turnover and retention. For example, if the economic climate is doing well and jobs are flourishing, it may be harder to retain employees if they have other, better job opportunities to assess. On the other hand, if the economic climate is poor and national unemployment rates are high, it may be easier to retain your employees since other job opportunities may be limited. Also, changes in consumer taste can affect demand for the product or service your company provides, which could lead to layoffs or mass hiring that could affect your company's employment rate.
Technological Advances
Advances in technology can affect employment rates. For example, certain industrial ventures previously requiring people to work on factory lines may now be able to use computer-operated machines instead of employees, depending on the industry. This may significantly decrease the amount of employees needed in a company's workforce. Certain technological advances in machine automation have also replaced the need for specific levels of employees in office atmospheres, impacting overall employment.
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Corporate Values
The corporate values that your company adheres to could impact your employment rate. If potential employees, for example, hear negative stories in the press about the way your company treats employees, this could affect your recruitment process and what type of candidate you are able to hire. If your employees feel unappreciated or unmotivated to work for your company, this could also affect employment in that these employees may leave for other ventures, or your company's production levels could decrease and layoffs may need to take place.
Seasonal Fluctuations
According to the U.S. Bureau of Labor Statistics, seasonal fluctuations in certain industries can affect employment. For example, if you own an agriculture or construction company, certain seasons may call for an increase in employees as opposed to smaller necessary workforces during off-seasons. Also, the BLS states that June typically sees large fluctuations in employment rates since droves of students enter the labor force during this time "in search of summer jobs.