Tax & admin · 18 October 2016

Losing a worker costs small businesses nearly 30, 000

training
Training a worker costs small firms more than larger companies, as does recruiting new staff
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.


 
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ABOUT THE EXPERT

Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.

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