Coronavirus Recovery: Canadian Small Businesses Must Focus on Easing Employee, Customer Fears

Date:

Share post:

By M. Tina Dacin and Laura Rees

A small business has been given the green light to reopen amid the COVID-19 pandemic. What does it need to consider for employees and customers?

Small business owners are reorganizing physical space to account for continued distancing requirements and rethinking supply chains to deliver products and services in new ways to meet changing demand patterns.

But they must not forget the hearts and minds of employees and customers.

That doesn’t mean replacing a focus on the bottom line, but it helps address the need for a new set of expectations and ways of communicating in terms of product or service offerings, delivery methods and real-time feedback.

Based on our expertise in organizational behaviour and past research we’ve conducted, we provide a set of recommendations to help small businesses thrive in our new COVID-19 economy by looking after the hearts and minds of the people most important to businesses — employees and customers.

Fear, Anxiety

One of the biggest outcomes of living amid the COVID pandemic is the fear, anger, sadness and vulnerability many people are feeling. Even very loyal customers may have suddenly short fuses when a favourite product or service is delayed.

Both old and new customers may feel hesitant to enter shops or restaurants, unsure of how to engage with employees safely and afraid of unknowingly getting infected or infecting others.

Employees, although likely relieved to be able to earn a pay cheque, may have similar fears, and wonder how to control potentially unsafe situations or customers who aren’t adhering to social distancing protocols.

Overall, engaging the hearts and mind of both employees and customers means recognizing that they’re probably feeling emotions differently than they were before COVID-19. In particular, they may experience more ambivalence — a mix of emotions that can feel uncomfortable or even alien — as they grapple with discovering, experimenting and understanding what a “new normal” means.

OWNER ROSANNA PETAN WEARS A FACE SHIELD AND JACK WILLIS WEARS A FACE MASK AS SHE CUTS HIS HAIR AT FRANK’S BARBERSHOP, IN VANCOUVER, ON MAY 19, 2020. PHOTO: THE CANADIAN PRESS/DARRYL DYCK

Research shows this kind of emotional complexity can lead to a host of outcomes, including vacillation, disengagement and even paralysis — at least partly explaining why employees and customers may seem like deer in headlights during the first days of a business reopening.

Yet our previous research shows that ambivalence can actually be helpful, increasing people’s problem-solving abilities by opening their thinking to alternative perspectives.

Redirecting Emotions

That means rather than avoiding ambivalence because it feels uncomfortable, small businesses must help their employees redirect these feelings into brainstorming creative solutions for engaging customers, updating websites and soliciting and incorporating customer feedback.

GROUNDS CREW DO MAINTENANCE AS THEY PREPARE TO OPEN PIPER’S HEATH GOLF CLUB DURING THE COVID-19 PANDEMIC IN MILTON, ONT., ON MAY 13, 2020. PHOTO: THE CANADIAN PRESS/NATHAN DENETTE

Doing so will have the added benefit of helping employees and customers feel more in control over the situation — a basic human need that has been drastically reduced during the pandemic.

Coupled with emotional complexity is the loss of beloved everyday rituals, from shaking hands to being able to stand close to help a customer decide on a haircut, new clothes or specific menu items.

As businesses reopen, addressing this loss of tradition and predictability in employees’ and customers’ minds will be crucial.

Our research on the role of rituals in institutional maintenance shows that common rituals bind people together, anchoring our sense of identity and structuring our lives in comfortable and predictable ways.

In short, rituals create the sense of normalcy that is now lost.

But to form new rituals and traditions, businesses must first re-establish trust. When trust is fragile and old rituals must be abandoned to make way for new practices, business leaders need to consider multiple approaches in how to work and interact with employees and customers.

Start a Dialogue

The first approach is to engage in dialogue.

Reopening costs do not solely pertain to sanitizing workplaces and providing personal protection equipment, but also to the amount of time it takes to discuss and address concerns.

Important questions to employees and customers include:

  • What are your concerns about being here? What can we do to make things safer?

  • What do I need to know about you that could help me work with and serve you better?

Companies should use this feedback to create new rituals and workplace norms together with employees and customers.

Customization, in fact, will be increasingly important as both employees and customers have unique needs and circumstances.

TWO WOMEN HAVE DRINKS ON THE PATIO OF A RESTAURANT IN VANCOUVER, ON MAY 19, 2020. BRITISH COLUMBIA HAS BEGUN REOPENING ITS ECONOMY. PHOTO: THE CANADIAN PRESS/DARRYL DYCK

According to local small business owner Lisa Arbo of Salon 296 in Kingston, Ont.: “A large part of success going forward will be about being sensitive to everyone’s reality.” This type of empathetic co-creation is likely to reduce uncertainty and give everyone a healthier sense of emotional and physical comfort and control.

Manage Perceptions

The second approach is to manage perceptions. Small business owners are the custodians of the trusted relationships between their companies, employees and customers.

Even as business owners adapt to this new, emotionally complex and less predictable world, their employees and customers are looking for them to communicate clearly, succinctly and often about what is both possible and not possible, and what the new expectations are at all levels of the social contract. That includes everything from physical distancing rules to standards for customer satisfaction.

By recognizing and finding ways to incorporate employees’ and customers’ emotional complexity and sense of loss for beloved traditions, small businesses can actually make this challenging time an unexpected opportunity to thrive.

PEOPLE WAIT IN A LINE FOR THE CASHIERS, SEPARATED BY THEIR CARTS AND A CORRAL MADE OF TAPE TO ALLOW FOR PHYSICAL DISTANCING, AT A GARDEN CENTRE IN OTTAWA ON MAY 23, 2020. PHOTO: THE CANADIAN PRESS/JUSTIN TANG

Uncertainty, change and customization are key elements of the new business reality and embracing them, while difficult, will yield success. Businesses that excel will be the ones that effectively learn to engage the hearts and minds of their employees and customers.

This article was originally published in The Conversation. Read the original article here.

M. Tina Dacin, Stephen J.R. Smith Chaired Professor of Strategy & Organizational Behavior, Queen’s University, Ontario.

Laura Rees, Assistant Professor of Organizational Behaviour, Queen’s University, Ontario.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

RELATED ARTICLES

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Biggest marketing lessons from FIFA World Cup: Vistar Media

Consumers care far more about whether a brand feels relevant to the experience than whether it has official status.

Cozey expands sleeper sofa category with two new products

Montreal-based furniture company Cozey is expanding its sleeper sofa category with two new products, the Orian Sofa Bed...

Equifax survey finds one in four Canadians expect to make only minimum credit-card payments

The findings point to growing financial pressure among some households, with 40 per cent of respondents saying they are spending more overall than they were a year ago, compared with 18 per cent who are spending less.

Plaza Retail REIT reports higher second-quarter profit

The Fredericton-based real estate investment trust said that profit and total comprehensive income rose 31.2 per cent to $16.6 million in the three months ended June 30, compared with $12.7 million in the same period a year earlier.

Daily Synopsis: Aug 7, 2026

New concept liquor store opens at Winnipeg Save-on-Foods, vintage retail concept opens on Dundas St in Toronto, FreshCo opening stores, Calgary food stall opening first brick-and-mortar location, and other news.

From The Desk: Navigating Growth and Resilience in Canadian Retail

This week in Canadian retail, growth initiatives, rising real estate demands, and strategic leadership shifts highlight sector resilience amid market challenges.

Retail Insider “Policy & Regulation Report”: Affordability Promises Collide With Retail Costs

Retail Insider’s Q2 2026 policy report finds affordability promises colliding with rising compliance, trade, labour and public-safety costs, while grocery property controls and public-store proposals expose how government action is reshaping Canadian retail operations today.

Crombie REIT Reports Strong Rent Growth Driven by Grocery-Angled Retail

Crombie REIT posted a seventh consecutive quarter of double-digit renewal rent growth as demand remains strong for grocery-anchored retail space across Canada.

How Quarks Built a Canadian Footwear Business Over Nearly Five Decades

Winnipeg-based Quarks is approaching its 50th anniversary while continuing to expand across Canada. Retail Insider examines the family-owned footwear retailer's growth strategy, merchandising approach and plans for the future.

Tim Hortons Targets Stronger Canadian Growth With New Stores, Beverages and Loyalty

Tim Hortons is opening 80 Canadian restaurants while expanding cold beverages and loyalty initiatives after same-store sales growth slowed to 0.1%.

Canada’s Freight Market Is Shifting Unevenly. Here’s What Retailers Should Watch

TFI International’s latest results and analysis from supply chain strategist Gary Newbury suggest Canadian retailers should prepare for uneven freight conditions, changing transportation capacity and evolving logistics costs.

Jamieson Wellness enters into definitive agreement to be acquired by Kirin in C$2.5 billion transaction

The transaction values Jamieson at approximately C$2 billion on a fully diluted equity value basis and approximately C$2.5 billion on an enterprise value basis.

Slate Grocery REIT reports second-quarter results, citing leasing gains and rent growth potential

Completed more than 569,000 square feet of leasing activity during the period as it continued to see rental growth across its U.S. grocery-anchored real estate portfolio.

Premium Brands reports record second-quarter revenue and earnings, revises 2026 outlook

The specialty food producer and distributor said second-quarter revenue reached a record $2.4 billion, up 26.3 per cent, or $495 million, from the same period a year earlier.

SmartCentres reports steady leasing gains in second quarter as occupancy rises, FFO unchanged

The Toronto-based REIT said occupancy reached 98.1 per cent as of June 30, up from the previous quarter.

Daily Synopsis: August 6, 2026

Retail Insider published 12 articles today on Canadian retail including Birks’ market move, Mattel’s strategy shift, Realm Fitness’ community, and McDonald’s new beverage platform.

Leon’s Furniture reports higher net income in second quarter despite lower sales

Revenue declined by $12.9 million from a year earlier, with furniture delivered sales down 4.2 per cent against what the company described as a strong prior-year comparison.

Retail Insider “Marketing & Media Report”: Live Events Shift Attention to Dynamic OOH

Major cultural events are redirecting Canadian retail marketing toward physical spaces. The Q2 2026 report examines how motion-based DOOH, local sports activations, loyalty platforms and measurable sustainability practices are shaping competition for consumer attention across Canada.

Birks to Leave NYSE American as Canadian Jeweller Reshapes Finances

Birks Group will leave the NYSE American for the OTCQB as the Canadian jeweller reports stronger sales, refinances debt and continues retail investment.