Nearly 46 per cent of workers across the UK are considering moving jobs, resulting in a potential £41.9bn cost to businesses while small firms will be crushed, as their recruiting expenses will reach £22.5bn, according to research conducted by Westfield Health.
Meanwhile, 76 per cent of employees, or more than three-quarters, reported being pleased or extremely satisfied with their jobs.
These results show that even when increasing employee job satisfaction, organisations that are uninformed of the talent exodus may still have trouble keeping talent on board. Small and medium-sized businesses (SMEs) will be particularly hard hit by this as they battle rising operating costs and enormous unanticipated recruitment expenditures.
Westfield Health CEO Dave Capper says: “Even though our research reveals the good news that many employees are happy at their current job, a worrying amount of people are still considering leaving.
“The average cost of hiring someone new is around £3,000. Coupled with the cost-of-living crisis, struggling with retention of workers could have a big impact on businesses, especially if the UK heads into a recession. SME leaders are facing huge financial challenges as it is, pair this with further unexpected recruitment bills and there’s a real cause for concern.”
More than a third or 34 per cent of workers say they’d prefer to work for a SME with fewer than 250 people, while around half of workers (53 per cent) do not have a preference. More than half of respondents say working for a SME gives them better access to top management (60 per cent), upholds a positive workplace culture (48 per cent) and enables them to have a better work-life balance (35 per cent). Smaller businesses are regarded to be leading the way when it comes to specific benefits.
Larger companies, on the other hand, with more than 250 employees, checked the more conventional benefits. In general, employees claimed that working for a larger company offered greater pay (40 per cent) career advancement (44 per cent) and assistance for physical health (51 per cent). The downside of working for a larger company is that, on average, employees of larger companies take more sick days off each year than employees of SMEs.
Capper says: “Those working for bigger organisations tend to note salary and career progression as key benefits – both of which help toward talent retention. They’re also more likely to have wellbeing benefits, however a key part of keeping employees happy is looking at the overall context these perks are provided in —the culture of an organisation.
“Our research shows that those working at SMEs enjoy the fact that their company has a better workplace culture and a more tight-knit community within the business, something which is much harder for large companies to change and get right.
“There’s a David and Goliath battle for talent on the horizon where smaller businesses have a real opportunity to play to their strengths and use these qualities to attract and retain talent.
“For SMEs looking to attract top talent away from large businesses, prioritising company culture and bridging the benefits gap with small investments in key areas, like mental health support, could be the key to recovering and thriving in the post-Covid economy.
“We already know that wellbeing is strongly linked to workplace culture. Our previous research showed that 85 per cent of people say there’s a link between wellbeing and workplace culture, meaning investing in your people’s wellbeing has a strong, positive impact on your business.”
Capper adds: “Knowing that people are satisfied at work but are still willing to leave is troubling for employers – especially SMEs that are already fighting against inflation and increasing costs.
“To avoid the potential exodus of workers and soaring hidden recruitment costs, businesses will need to prioritise the benefits that matter most to employees, such as creating a great culture through wellbeing support. Not only will it help with employee retention, but it will also make a lasting impact on employee health and performance, delivering tangible business benefits.”