Should SMEs reconsider their approach to employee retention?

As a consequence of the ongoing pandemic, many employees have reassessed what they value in their work life.

Recent research conducted by Unum (an employee benefits provider) revealed that 40 per cent of employees would consider pursuing another job offering better employee benefits.

On the other side of this, it was found that under a third of small and medium sized enterprises (SMEs) did not plan to alter employee benefits. Therefore, SMEs could be at risk of losing valued employees!

With the Office for National Statistics (ONS) figures showing unemployment falling to 4.2 per cent and job vacancies at a fresh height of 1.22 million, employees can choose to relocate with ease. This begs the question: should SMEs reconsider their approach to employee retention?

There are a number of SMEs taking a step in the right direction, although only 26 per cent of SME decision makers stated they have or are planning to introduce additional employee benefits. Whereas 46 per cent stated monetary factors, such as bonuses and salary increases, along with remote or hybrid working policies would be used for employee retention. Despite this, it is evident that money is not the priority for every member of staff!

Within the SMEs that have reported analysing employee benefits since the start of the pandemic, 48 per cent did so after taking on board the changing needs of their team. In light of this, it could be of interest for SMEs to revisit their benefit packages for long-term staff retention.

If you are considering altering your approach to employee retention and require support with finances, please get in touch.