Being an employer in an SME today is no walk in the park. As payroll costs continue to rise, business owners face increasingly daunting challenges and can find themselves overwhelmed by their social responsibilities. Paradoxically, labor law—which is intended to protect workers—can sometimes strain human relationships and weaken the company.
Workplace tensions
In a small business, any element that disrupts the fragile human balance can quickly turn into a nightmare. Moreover, attitudes toward work have evolved: the younger generation prioritizes a better work-life balance while seeking a stimulating and varied professional environment.
When an employee decides to take a break—to travel the world, for instance, or to focus on a family project—it inevitably impacts the rest of the team, especially when headcount is limited. Furthermore, parental leave of up to twelve months can be taken for each child until they reach the age of twelve (or even twenty-one if the child has a physical or mental disability).
More alarmingly, absenteeism due to illness has reached unprecedented levels in our country. Nearly 6.13% of working days were "lost" to absenteeism in 2021—a record high. While this figure was undoubtedly impacted by Covid-19, it was already at a worrisome level (exceeding 5%) in 2019 and 2020.
When it comes to short-term absences, employers are doubly penalized, as they must pay guaranteed salary (one month for white-collar staff, seven days for blue-collar workers). Long-term illnesses, often stress-related (such as burnout), represent another plague capable of shaking a small organization because they are unpredictable and impossible to plan for.
Shift in power dynamics
In today's context of a "war for talent" raging across many sectors, the power dynamics have flipped. It is not uncommon to see employees—supported by their labor unions—mastering the subtleties of labor law far better than business owners, who lack the time to dive deep into the subject.
This creates a surprising social dynamic: bosses bend over backward to attract and retain their staff. Fear of losing top performers can even deter owners from investing in employee training, as workers could easily leverage their newly acquired expertise elsewhere.
Frustration among SME owners
It is hardly surprising, then, that some SME leaders are feeling discouraged. Enjoying only limited social safety nets themselves, they grow weary of constantly covering for employee absences and view the situation as inherently unfair. This discouragement can turn into exasperation, ultimately prompting a decision to sell the company. A sad reality!
Effective communication
The quality of the workplace climate—built over time—becomes critical when a business is being sold. When employees, kept in the dark to preserve confidentiality, eventually hear the news, they are often anxious—sometimes excessively so. They fear for their future, even though the buyer typically wants to retain the existing team.
It is therefore essential to communicate effectively, at the right moment, with clarity and conviction.
Nonetheless, employees did not ask for this change and must endure it. They will have no choice but to adapt to a new management style. The buyer will need to demonstrate active listening, patience, and strong interpersonal skills. Finding key allies among the staff will be essential to gradually building trust and rallying the team around the new business vision.
Article by Mr. Tanguy della Faille
