Business and the Pandemic: The Great “Reshuffling” Are we in a Great Resignation or Great Rejuvenation?
Labor shortages across various industries seem to be the “new” reality these days. With a record breaking 4.3 million Americans or 2.9% of the entire workforce quitting their jobs just last month, the “Great Resignation” is arguably due to the pandemic. Factors leading to the Great Resignation include government benefits, remote working, and moving to different locations for tax and familial reasons. At the same time, many older workers decided to retire early with only 50.1% of the American workforce indicating that they will work beyond age 62. Aside from other factors, soaring stocks made more people wealthy, with the number of 401k and individual retirement accounts holding at least $1 million soaring to a record 754,000 in the second quarter of 2021, up from 75% from last year.
For those continuing to work, the Great Resignation has also led to a boom in entrepreneurship. The Financial Times, for instance, has reported that in the United States, the number of filings, in July of 2020, to start a business increased 95% compared to the same time in 2019. New opportunities have emerged in meeting demand for new virtual solutions, changing how we rethink our former business models. This includes reducing warehouse or office space in favor of remote work, or finding less expensive space from which to work. Further, the way we shop has changed. Real estate, for example, has truly digitized over this past year with property showings being on-line, and the advent of the metaverse as well as virtual reality.
We call this the Great Rejuvenation. Why? We, as a country, are redeveloping and redefining business, with an emphasis on innovation. There are an increased number of small businesses which makes up 99.9% of businesses in the United States.
If you are someone who has started or wishes to start a business, there are a number of factors for you to consider. These include determining the proper organizational formation (whether to form a limited liability corporation, professional association, or “regular” corporation, for instance); preparing partnership agreements (if you have partners), employment agreements, independent contractor agreements, reviewing and preparing vendor agreements, and reviewing insurance policies. Likewise, you may have an existing business and have similar questions.
The pandemic has created challenges and yet opportunities in the workplace. The key is to make sure that you plan and review your business needs with legal counsel so that you avoid legal pitfalls and make informed decisions.
Oppenheim Law has a Corporate Concierge Program whereby we assess your business needs, and work as your outsourced legal counsel, preventing and assisting with legal issues that may arise. The concierge program has expanded during the pandemic as clients enjoy monthly flat fees so that are able to better budget for legal. Give us a call at 954-384-6114 or contact our firm directly at email@example.com