Research has shown that nearly half of the workers in SMEs are considering leaving their current jobs. This will no doubt be a concern to small business owners across the UK who recognise the importance of holding on to their top talent, especially as they try and navigate the current economic climate.
Are SMEs struggling to compete with larger businesses?
A survey conducted by Westfield Health of 2,000 UK employees, suggests that 46% of staff are ‘either considering or actively looking for a new job’.
This, of course, leads to a fear that the top workers are honing their skills at smaller companies, and then jumping ship when the big firms come calling.
As the report details, “With the cost of a new hire averaging around £3,000, this employee exodus could result in a potential £41.9bn cost to businesses across the country“
Is it as bad as it sounds?
Small businesses are recognising the work they need to do to keep their top people, with particular attention being paid to building a solid company culture (something that’s arguably easier in a small business) and ensuring that their teams are looked after with diligent well-being processes.
In fact, smaller businesses are investing 10% more per team member in well-being benefits, when compared to the larger firms.
The numbers suggest that this approach is working:
- 65% of those working in SMEs say that they are currently satisfied in their roles
- 27% of SME workers believe their mental health has improved in the past year
So why are SME staff thinking of leaving?
According to Vicky Walker, Westfield Health’s Group Director of People, it could be to do with communication: “For small businesses, it’s not issues like quiet quitting they need to worry about, it’s stealth quitting. This is a movement where workers who might be really happy in their roles, will still leave.
“This is a difficult problem to tackle as a talent drain can come as a complete surprise. Two-way communication between employer and employees is more important than ever for small businesses to help uncover flight risks and work out what their people need.
“SMEs should know where their strengths lie. They are more attractive for potential talent as they offer a better, more personalised work-life balance and healthier workplace culture; they can easily face the talent drain challenge head on if they play to these strengths.”
What can small businesses offer?
According to the research, the most appealing aspects of working at an SME, for employees, are:
- Contact with senior leaders – 60%
- Workplace culture – 48%
- Work-life balance – 35%
On the other hand, when talking about the benefits of working at larger businesses, employees mentioned:
- Physical health support – 51%
- Progression opportunities – 44%
- Competitive salaries – 40%
Interestingly, when asked where they would prefer to work (between an SME or a larger firm), whilst 53% of UK workers said they didn’t mind – 34% said they’d prefer a smaller business. The ball would appear to be in the SME court.
Vicky Walker: “So, small businesses are currently on the right path to win this fight and hold onto their best talent, but the fight is not over.
“At the same time, SMEs are recognising where there might be gaps in the benefits they’re offering and now should be investing in benefits like physical and mental health to level the playing field.
“They also need to focus on making the most of their workplace culture and using this to engage with workers and prioritise two-way communication to find out what would help their employees at work.
“From there, SMEs can maintain a strong and consistent EVP [Employee Value Proposition] – this will highlight their biggest draws for talent. This EVP needs to be communicated to help their people make the most of what’s on offer and show off the value of the culture and work-life balance that they can offer.”
So there you have it
Are you doing enough to retain your top people? And what do you think are the main benefits of working for a small company? Let us know with a comment.
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