Findings from Sodexo Engage’s SME Guide to Loyalty and Engagement report have revealed that SMEs are at risk of losing up to 41% of their female talent in the coming year. The report surveyed SME employees and employers in the UK to better understand how SMEs can thrive in a changing world, the challenges they face and what employees think of their organisation.
In the UK, the number of SMEs sharply rose by 61% between 2020 and 2021 and now accounts for three-fifths of the British employment sector. 42% of SME employees indicated that they preferred to work for an SME over a larger organisation because it offers a ‘family feel’ and in particular, this sentiment was felt amongst female employees with half citing this reason. Other reported reasons why employees are attracted to work for SMEs included a chance for a better role, opportunities for promotion and having greater responsibility in their roles than in a large organisation.
Yet, the picture is not all rosy. In the war for talent, SMEs face stiff competition from large organisations with 57% of SME employees preferring to work for bigger businesses. 70% of males and 41% of female employees felt this way whilst almost a third indicated that they are looking to leave their role at an SME in the next 12 months to move to a larger organisation. Surprisingly, talent reported that they were not enticed by the better salaries on offer at larger corporates rather, they desired the better perks, roles and work-life balance that they could provide.
Nearly half of SME employers said that competition with corporates who are able to offer more flexible working was their biggest challenge in attracting and retaining talent whilst from an employee perspective, engagement and motivation were reported as the biggest challenges. Jamie Mackenzie, Director, Sodexo Engage commented, “People expect to be paid a fair wage but as our research has shown, there are other ways for employers to make their staff feel valued and appreciated, which in turn will motivate them. Introducing flexible working and more personalised perks can go a long way in building happier, more engaged workforces.”
HR know full well that a successful reward and recognition programme can help motivate, engage and encourage positive behaviour across the company. To better understand how SME employees want to be rewarded, cash or bonuses were the most popular choice of reward followed by a public thank you and promotion opportunities. However, it is important that employee rewards are directly aligned to the organisation and its employees and those being rewarded are done so in a way that incentivises them on an individual level.
Paul Arkwright
Publisher
