Research carried out on 750 senior financial and HR decision makers in UK small businesses between 14 and 22 March 2021 by 3Gem - a market research company - has shown that 21 per cent of small businesses expect to lay off staff by September.

In addition, 90 per cent of those surveyed say that they have been approached by employees with their worries - 32 per cent have concerns about losing their jobs; 28 per cent have concerns about their personal finances after the pandemic and 21 per cent worry about a reduction in their salary.

Digital employee benefits service provider, Worklife, has based their Small Business Monitor on this research - which reveals that 29 per cent of small businesses have had to furlough staff since November 2020; 25 per cent have had to cut staff hours; 22 per cent have reduced pay and 20 per cent have been unable to offer an annual salary increase.

With the Bank of England predicting that unemployment will peak at 5.5 per cent when the furlough scheme finishes, Worklife’s analysis has found that 14 per cent of permanent small business jobs and 9 per cent of temporary small business jobs are potentially at risk.

Regarding income, 31 per cent believe that their revenue will increase, but 45 per cent think that revenue will remain quiet over the next year - pointing to the fact that the future for some employees will be uncertain.

Steve Bee - Director WorkLife - states that this demonstrates the need for employers to rebuild their businesses and the confidence and wellbeing of their staff, also. 

He commented:

“While the past year has been tough for bosses, things haven’t exactly been rosy for their employees, many of whom now face continued job insecurity alongside higher living costs due to rising inflation. So, while ensuring the business is equipped to meet future operational challenges will be crucial, just as important will be supporting the wellbeing of staff as we move through the recovery phase. For firms facing continued income issues and thinking they might need to cut employee numbers, it’s important to note that the most valuable support won’t come through direct and expensive remuneration, but rather by embracing flexibility and offering genuine understanding towards people’s worries and concerns. This might be achieved through allowing people time away from work to interview if they’re facing redundancy or looking at offering low-cost benefits such as shopping vouchers to boost people’s pay packets if they’re not getting an annual salary increase. 

Whatever situation the business is in, over the next few months a key priority should be providing an affordable but meaningful benefits package for staff that provides genuine support for the day-to-day challenges they might encounter.”