Digital Skills
In both the digital and sustainability transitions, start-ups and established SMEs alike are challenged by a lack of skilled employees. SMEs do not always have the same resources as large companies to invest in the training of their employees. Over 70% of firms report access to talent as an obstacle to new investment. Availability of skilled staff or experienced managers remains the most important problem for a quarter of SMEs. The skills shortage is particularly acute for digitalisation and new technologies, as 35% of the labour force have low or no digital skills.
Wellbeing
Looking after the mental health and wellbeing of employees has never been more important. Many are facing the challenge of feeling isolated by working from home, losing touch with colleagues due to furlough or dealing with grief should they lose a loved one to COVID-19.
Employee wellbeing programmes are still typically the preserve of corporates, with smaller companies usually lacking in a coherent wellbeing strategy and offering, at most, a benefit here and a perk there. Many SMEs cite budget constraints as a reason for not implementing more formal initiatives, and it is easy to see why investing in staff wellbeing may feel counterintuitive for companies under huge financial strain due to the pandemic.
Unfortunately, saving on wellbeing is a false economy, since increasing happiness has been shown to increase productivity by 12% to 14%. With most of the working population of the UK employed by SMEs (that is 5.5 million SMEs employing 16 million people), the future of the UK’s economy depends on the productivity of these companies. Three key initiatives for SMEs are:
1. Training
Invest in proper training for managers. A good manager can be transformative, empowering employees to grow and develop their potential, but many are stressed, unsupported and badly managed themselves. Doctors or engineers would never be allowed to practice without training, but it is assumed that management skills can be picked up along the way. This has a very negative impact on the prosperity, health, and wellbeing of many companies and indeed society as a whole. Benefits such as free bananas and subsidised gym membership are great, but the fundamentals need to be in place first.
2. Workplace culture
Consider your workplace culture. Do people have psychological safety to express their opinions freely? Trust and communication are key, as is being kind to each other and to ourselves. Eradicate toxic norms and behaviour and lead by example. Good social relations in the workplace are very important, and concerted and creative efforts need to be made to reduce social isolation for employees working from home.
3. Work:life balance
One in three employees of SMEs are working carers (including parents) – a sector of the working population that has been particularly adversely affected by COVID-19. A 2020 survey by Working Families found that this group prioritise their families over anything else and it is the ‘always on’ culture (made worse by working from home) that they struggle with the most. Having honest conversations about workload expectations and allowing flexible working for all employees will enhance wellbeing and motivation, as well as fostering gender equality in the workplace.
By facilitating conversations about difficult or taboo topics (such as mental health and money troubles) employers are showing that they recognise for their employees there is life beyond work that they value. It also demonstrates that it benefits everyone if employers are understanding about any issues that arise along the way.
