Incfile Survey Shows Many Small Business Owners Were Ready to Go Remote Before the Pandemic

Small Business Owners & Workforce Management in 2021 We asked lncfile customers how their businesses have adapted to the changing landscape of remote work in 2021... .and found that, for many of them, the digital shift was coming well before the pandemic..and they were ready for it. 43% of Small Businesses 1 Did Not Need to Adapt to Remote Work to Survive In many cases, businesses already had work-from-home (WFH) options in place. 21% had moved to a hybrid office/home model before the pandemic. 10% were unable to adapt 43% due to their industry/ type of business. 15% adapted to remote work and report it's going well. 7% tried to adapt, but it didn't work out. 4% are going to adapt to WFH soon Most Small Businesses 2 Are Planning to Make WFH a Permanent Solution say permanent 47% WFH is their plan. are testing it out 16% on a temporary basis. prefer looking at a hybrid 37% option instead. Among Hybrid Workplaces, the Ideal Balance Is More Time at Home • Office • WFH Most preferred a greater percentage of time working from home rather than in the office. 90% 10% 36% 70% 30% 13% 50% 50% 24% 30% 70% 9% 10% 90% 18% 4 Investing in the Future of Remote The shift to remote work in 2020 required some businesses to scramble to implement new technologies, tools and software. However, many businesses that had already taken a hybrid or WFH approach were prepared to pivot quickly. More than half report no new investments. 53% were ready for the shift. 36% needed to adopt new tools and technology. 22% invested in employee training on new tools. 13% spent more on logistics and hiring. A majority of small businesses are not investing in cybersecurity. 32% say they're too small to need it. 15% say it's too expensive. 9% don't know what their options are. However, the remainder believe cybersecurity is critical to the remote work shift. 26% have already invested in it. 19% are planning to invest. Most small businesses are or vwere already using technology designed for remote work. 53% had adopted remote technology before the pandemic. 34% are exploring options for remote tools and software. 13% have only recently implemented remote work tools. Among remote work tools, video conferencing is the most common. 62% say they started using Zoom, Microsoft Teams, Google Meet, Slack, etc. Other popular tools for remote work include: 50% Accounting/bookkeeping software 45% Cloud storage tools 20% Social media management tools 15% Email marketing apps 15% Project management platforms 11% Automation tools 11% Time tracking apps 7% Customer support apps Creating a Culture of Remote Work 53% of small businesses say working remotely integrates naturally with their culture. Among other businesses: 15% aren't sure how they'll maintain their culture. 15% feel they will need to make major culture changes. 14% are working to identify changes to adapt their culture to remote work. 3% aren't sure how shifting to remote work impacts their culture. Businesses are looking at many ways to increase engagement, both remotely and in person. 33% are leaning into video conferencing to make connections. 30% are planning on occasional in-person meet-ups. 22% are stil| looking for ideas to boost employee engagement. 15% want to head back to the office to increase face-to-face interaction. Many small businesses are now looking to hire employees that fit well into a remote culture. 38% are seeking open communication from them. 34% want candidates with expertise in their field. 13% most value prospects who are innovative. 11% are looking for autonomy in job candidates. 4% are actively seeking candidates who are digital natives. In 2021, Many Businesses Are Reevaluating Their On- Site Needs and Putting the Rental Money to Good Use 6. A majority have never leased or owned commercial space, but those that did are seeing significant cost savings. 56% had no office location prior to 2021 and instead relied on coworking spaces. 21% are hanging onto their physical location due to business needs. 18% have given up commercial locations and are saving money because of it. • 5% say they're planning to give up their rented physical space soon. Giving up a rented, leased or owned space allows businesses to invest in other priorities, including: Expanding the business - 33% Marketing and sales - 30% Digital transformation - 14% Hiring the best talent - 13% Improving customer service - 10% When It Comes to Hiring, Downsizing Has Slowed, But So Have Full-Time Positions 7 In the next 6-12 months, only a slim percentage of businesses plan to be actively hiring. 44% say they aren't hiring because business is steady. 24% are only hiring freelancers or consultants. 20% are hiring temporary or contract employees. 9% say they're hiring aggressively. 4% are still letting employees go. A majority of businesses Some businesses do not hire seasonal are expanding their employees, but among those that do, just 3% horizons when it comes to hiring say they have stopped hiring seasonal workers since the pandemic. remote workers from around the world. 54% still prefer to find local employees. 26% are open to global employees but haven't explored it yet. 11% are already hiring globally. 8% aren't sure how to go about finding and hiring global candidates. When they are looking to find new talent, small businesses use a variety of hiring platforms and methods, including: Linked in îndeed Upwork ZipRecruiter fiverr monster Referrals and word craigslist of mouth The Shift to Remote Work Was Building Before 2020, and Small Businesses That Were Prepared Adapted Well While the pandemic took a major financial toll on small businesses, the wave of digital transformation began swelling long before the pandemic, and businesses that were agile and adaptable found that their workforce management easily navigated the shifting tides. In September 2021, we polled small business owners who are also Incfile customers and compiled insights from 442 respondents.