Replacing an employee currently costs small UK firms almost 30, 000 on average due to lost productivity, recruitment fees and training time, new research has revealed.
According to insurer AXA PPP healthcare, small business owners are looking for better ways to retain employees in light of the growing cost of staff turnover, with firms likely to focus on employee wellbeing in the year ahead.
The results of an AXA survey showed that in 2017, company owners will look to make the wellbeing of their staff more of a priority. Some 35 per cent said they wanted to offer employees a better work-life balance, and 21 per cent revealed an interest in offering more flexible working practices.
Almost one-in-five small business bosses wanted to implement better procurement practices as a way to save money.
AXA’s SME director, Iain McMillan, welcomed signs that small businesses were beginning to recognise the importance of wellbeing amongst co-workers. Attracting talented people to drive your business forward involves considerable commitment and investment, he added.
good people are hard to get and keep so it’s good news that smaller firms acknowledge the importance of work-life balance.
creating a positive, supportive environment where workers can flourish is key to building a high-performance workforce and at the same time safeguarding your business from the costly risk of losing valuable people.
The research also emphasised employer concerns about the cost of wage bills going forward. As many as 14 per cent of small businesses could foresee working hours having to increase in 2017, with employee remuneration expected to jump accordingly.
A further study, conducted earlier this year by the Chartered Institute of Personnel and Development (CIPD) revealed that employees who work flexibly are generally more satisfied than those that don’t.
Almost two-thirds of flexible workers are satisfied with their work-life balance, with the figure even higher for London-based staff. In the UK capital, 20 per cent of all workers cited commuting as the worst aspect affecting their work-life balance.