Can Franchising Beat the Great Resignation?

The combination of the COVID-19 pandemic and a labour crisis dubbed the “Great Resignation” has had an unprecedented impact on many industries in the UK, creating a time of upheaval that has seen record numbers of employees leave their jobs.

Many studies have been conducted and found various factors that are contributing to the problem, including the withdrawal of older workers from the workforce (whether due to concerns about COVID-19, health problems associated with the pandemic, or other factors) and increased competition in popular sectors.

However, one primary cause identified by a number of studies (including those by Adobe and Mercer) is dissatisfaction with work.

This is particularly the case in the US, where strike action has also emerged as a result of poor labour conditions but has affected workers around the globe more generally as well. Unfortunately, economic conditions have led to higher rates of unemployment among this contingent, instead of what we would have expected to see: higher rates of self-employment.

Self-Employment: A Risky Solution?

Starting a business during the pandemic was a huge risk, and the figures bear this out. According to the Office of National Statistics, an overwhelming majority of those who were self-employed during the early stages of the COVID-19 pandemic had been in the same position since before March 2019.

The early stages of the pandemic were accompanied by uncertainty, with lockdowns and furlough schemes affecting the economy in unpredictable ways.

However, at World Options, our franchise programme grew significantly over the course of the pandemic for a number of interrelated reasons, and we feel that our success could offer some key lessons for both employers and workers.

Franchising combines the strengths of self-employment — such as the flexibility to choose where and when you work, or the ability to take control of your business — with the support of a larger organisation, a proven methodology, and a built-in customer base.

Our franchisees are self-employed and operate their own businesses, but with our support behind them, they do not face the same level of risk when embarking on a new venture. We were also fortunate that as physical stores reduced their opening hours, restricted entry, or closed entirely, online purchases boomed.

As a shipping services provider, we were able to benefit from this rapid growth, and even as most retail locations have since reopened, the percentage of transactions taking place online has not returned to its pre-pandemic levels.

This permanent shift towards online shopping means that our franchisees are entering a growth market, which also offers some reassurance in the face of economic uncertainty.

Franchising: The Best Of Both Worlds

There are many different ways in which franchising could positively impact some of the concerns we’ve already addressed.

For example, the self-employed workforce is much older on average than that of employees, according to ONS figures. A major challenge in shipping and logistics is that the workforce is ageing, and older workers are retiring without enough young talent to replace them.

Thankfully, franchising can help by presenting an affordable way for young people to start their own businesses, without the same barriers to entry that they might experience in trying to develop their own unique business model.

Other types of franchises in this industry include parcel courier services, which can be a great way to introduce more last-mile delivery drivers into the sector, and again have low barriers to entry for workers from outside the industry.

The upfront cost to invest in a World Options franchise is relatively low compared to other franchise models, and we provide full training to all franchisees, which means that industry experience is not always necessary - otherwise, the prior experience can be a significant barrier to entry for young entrepreneurs.

This is ideal for young entrepreneurs who can feel confident about starting their businesses with the full support of a large international organisation behind them.

If you’re interested in learning more about becoming a World Options franchisee, please visit our franchise information page.