'Survival tactics' | With many firms "at risk of collapse", how does HR ease staff concerns?

Small businesses are at risk of collapsing due to soaring business costs, an expert has warned, prompting concerns about how HR might allay employee worries.

Alan Thomas, UK CEO at Simply Business, issued the warning to Britain’s SME (small and medium enterprises) following the release of the latest consumer price inflation figures for July, published by the Office for National Statistics (ONS).

Businesses across the UK continue to be impacted by rising inflation, an increase in cost of living and a looming recession, which is having a significant impact on the hiring of new employees.

Concern surrounding rising energy prices also continue to grow. Thomas explained that, although the energy price caps do not apply to businesses directly, millions of small business owners are still experiencing increased energy bills at a time when costs are rising in most operational areas. Simultaneously, consumer purchasing power is going down as Brits cut back on non-essential spending, harming the books of SME owners, he said.