Protect your small business from these risks.
While having the right small business insurance is a great way to protect against many risks, did you know that many risks can be mitigated by simply having enough employees on staff? While many business owners might not realize it, they are putting their company at risk every time they are understaffed. Here are some of the major threats that understaffed businesses face.
Increased Employee Injury and Illness
When you have a limited staff, your employees are forced to complete more work in less time. This can result in them rushing or cutting corners when it comes to their work. When your employees rush, they are less likely to adhere to company safety protocols which increases their chances of getting into a serious workplace accident. Additionally, the stress of having to get everything done can also take a toll on your employees’ overall health. The strain of being overworked can increase their chances of developing an illness.
Missed Deadlines
When your business is understaffed, you often lack have the necessary manpower to meet every project deadline. Even with all your employees working hard, it’s not reasonable to expect a skeleton crew to handle all the work that a fully functional staff can. Not only will missing deadlines affect your client relations, but it will also add to the stress that your employees face on a daily basis.
Increased Employee Turnover
As previously mentioned, an understaffed company tends to place more pressure on it’s employees, expecting them to do more with less. However, this high stress atmosphere makes it far more likely for your employees to quit. As it takes time to interview and train a new worker, the loss of an employee can affect your business’s productivity. Additionally, this will place even more pressure on your remaining employees, increasing their workplace dissatisfaction. Thus, understaffing your business can create a vicious cycle of employee turnover.
These are some of the major risks that your business faces when it is understaffed. While hiring the right staff members can address these risks, your business also faces other serious threats. If you want to protect your business, then make sure you have the proper small business insurance protections in place. We at PMC Insurance Group are experts on small business insurance and can help you put the proper policies in place. Contact us today to learn more about getting competitive coverage for your small business clients.
