The majority of UK citizens have expressed they are not financially comfortable in the current economic climate (with only a third saying they are), according to findings from a YouGov survey. However, those working for small and medium-sized businesses (SMEs) are receiving support from their employers as Purbeck Insurance Services, the business insurance firm, reveals firms are putting their staff and the planet first despite facing their own economic pressures.
Employee wellbeing has remained a top priority for SMEs during this time of financial hardship, Purbeck finds, with just under half (49 per cent) reviewing employee salaries and a similar figure providing workers with a cost-of-living bonus.
Purbeck’s survey shows that staff retention remains healthy across the SME community, and it is the smallest businesses that are seeing the best results. Forty per cent of companies with one to nine employees describe their staff retention as ‘very good’, compared to just a quarter of businesses with 100-249 employees.
This is in large part due to the actions SMEs are taking compared to their more established competitors. In addition to supporting employees financially through difficult times, SMEs are also showing their support for the environment. The Purbeck survey found that 64 per cent are committed to reducing their carbon footprint, this is most likely to occur in firms run by younger people aged 25 – 34.
A spotlight on Earth’s wellbeing
SMEs in the West Midlands are taking the most action on decarbonisation, while those in the North East are the least likely to introduce sustainability measures. Meanwhile, firms with 100-249 are far more likely to be introducing environmental initiatives than smaller businesses with one to nine employees.
In line with this year’s World Environment Day theme of cutting plastic consumption, the most common actions include reducing the amount of waste the business creates (45%) as well as setting up recycling programmes for materials, including plastic.
Crucially, one in three SMEs taking environmental action is encouraging their staff to adopt sustainable procurement practices, thereby helping to embed sustainability across their supply chains and operations.
Great business practices, loyal people
As SMEs continue to demonstrate strong business practices they are winning the hearts and minds of their employees.
Todd Davison, MD of Purbeck Insurance Services, said: “It’s great to see that many UK small businesses are taking practical steps towards decarbonisation, while also looking after their employees, even though they are facing their own fiscal challenges. Doing the right thing does, however, often come at a cost.
“It is therefore vital to ensure that if a business loan becomes necessary, a personal guarantee for that loan is taken off the shoulders of the business owner/s through personal guarantee insurance. With the right financial backing, even the smallest businesses can play a meaningful role in working towards net zero without a negative impact on their cashflow or employee well-being.”
Source: https://thefintechtimes.com/
