As we move further into 2025, business owners continue to face a workplace climate that’s more complex than ever. Gallup’s recent report, 7 Workplace Challenges for 2025, paints a stark picture: employee engagement is at an 11-year low, wellbeing has plummeted, and the gap between leadership intent and employee perception is widening.
For small business owners — this might feel overwhelming. But with the right strategies, even lean teams can lead with clarity, build a better culture, and create a workplace where people want to stay.
Here’s how.
1. Rebuild Commitment in the Era of the “Great Detachment”
Gallup calls it the “Great Detachment” — a growing trend where employees remain in their roles but mentally check out. Unlike the mass resignations of 2021, today’s workers are staying put, often due to economic concerns, but they’re emotionally disengaged. This silent withdrawal can hurt performance, team morale, and customer service — especially in small teams where every person counts.
Small business solution:
Make connection a weekly priority. You don’t need formal engagement programs — just carve out 15 minutes weekly to check in with each employee. Ask: What’s working? What’s not? How can I support you better? These micro-conversations, led with genuine curiosity, can reestablish trust and belonging.
2. Turn Limited Job Options Into Purposeful Work
A tough job market can trap employees in roles they don’t enjoy, leading to frustration and disengagement. But Gallup’s research shows that even in improving job markets, employees don’t automatically become inspired — they just go from frustrated to indifferent. That’s a missed opportunity for small businesses to differentiate themselves by offering meaning, not just money.
Small business solution:
To give people a reason to stay beyond the paycheck, it may be time to revisit your company mission statement and values. Ensure they clearly articulate the impact of your work. For example, if you’re a medical practice, highlight how your team improves the health and well-being of your community. If you’re an IT consultancy, demonstrate how your services empower other small businesses to thrive. When people see purpose aligned with their work, they find deeper meaning and are more likely to stay.
3. Prioritize Wellbeing Without Big Budgets
Gallup reports that just 39% of employees strongly agree that someone at work cares about them, a drop from 47% in March 2020. And those who don’t feel that their company cares about them are more likely to burn out, call in sick, or leave. Yet wellbeing initiatives don’t need to be expensive. In fact, culture often matters more than perks.
Small business solution:
Create a culture of care. Normalize flexible work hours, encourage lunch breaks, and be vocal about the importance of boundaries. Even something as simple as “We don’t expect you to check emails after hours” can go a long way.
4. Make AI Less Scary and More Useful
Despite investment and enthusiasm, workplace AI usage remains low — and employee confidence in using it is declining. Many workers aren’t rejecting AI because they dislike it, but because they haven’t been shown how it can help them. Small businesses have a chance to lead by example here.
Small business solution:
Don’t wait for a formal training program. Introduce AI tools gradually, and use them alongside your team. For example, show your team how ChatGPT can help draft customer responses or write job ads. Offer bite-sized learning — like a 10-minute demo during a team meeting.
5. Support Working Parents by Being Human First
The high rate of burnout among US working parents (66%) poses a significant risk to small businesses where replacing key staff is costly. This is compounded by the fact that many working mothers, facing childcare pressures, are more likely to delay career advancement (35% vs. 18% of fathers) or consider leaving. To combat this, companies should revisit their mission and values to actively support working parents. Offering a healthy work-life balance leads to significant gains: women with this balance are 50% more likely to thrive and 38% less likely to seek new employment.
Small business solution:
Start with empathy. Offer flexible schedules or remote options when possible. If you can’t offer formal parental leave, create a clear and supportive plan for returning parents. Ask what they need — and listen. Your support will earn long-term loyalty.
6. Close the Feedback Gap
Gallup found a significant mismatch between how often managers think they give feedback and how often employees feel they receive it. This isn’t about micromanagement — it’s about regular, meaningful conversations that help employees grow. And in small businesses, feedback doesn’t need to be complex to be impactful.
Small business solution:
Create a feedback rhythm. You don’t need performance review templates — just commit to consistent recognition and feedback. Use this formula: “Here’s what I saw you do well, and here’s where I think you could grow.” It’s simple, honest, and powerful.
7. Make Hybrid Work… Actually Work
With over half of remote-capable workers now hybrid, many businesses are still figuring out how to collaborate effectively. Miscommunication, missed meetings, and a lack of cohesion can hurt even the best teams — unless hybrid work is intentional.
Small business solution:
If you offer hybrid work, co-create a team charter. Define expectations together — like when to be online, how to share updates, and how often to meet in person. Use tools like Slack or Trello to stay connected, and schedule occasional in-person catch-ups to maintain cohesion.
Closing Thoughts
The good news? Small businesses have a superpower: agility. You don’t need complex systems or a big HR department to create a workplace where people feel seen, heard, and valued.
At Focus HR, we partner with businesses just like yours to simplify HR — so you can focus on what matters most. Whether you need help building a feedback culture or navigating flexible work, we’re here to support you.
