Small employers are the backbone of the UK economy. According to The Federation of Small Businesses, growing enterprises account for almost half of the country’s turnover, and employ 6 in 10 members of our population.
However, looking after small business growth is essential to ensuring survival in a competitive economic climate. Small firm’s attitude might be bullish, but trading conditions are still tough – and there’s always the danger that talented employees will be spirited away by bigger, more prepared business rivals.
The impending EU referendum will also have a huge impact on how small business fortunes fair, as a Brexit could threaten the futures of thousands of small businesses. So, how do you safeguard your future as a small business, and retain valued workforce members? Here are some things to consider.
Why should people come and work for my small business?
It’s very important to understand and communicate the benefits of working for a a small business like yours. Being part of a dynamic, growing business is a really exciting environment to work in, where the right employees can make a real difference to the company’s expansion.
With fewer people involved in the decision making process, every person’s contribution really does count. Make sure you give your employees the voice to speak, and listen to their ideas. Be sure also to reward their hard work, and to make sure they know their vital role in your success story.
What are the challenges with running a small business workforce?
Finding the right people is an ongoing challenge for companies of all sizes, but in a small business environment, the productivity and skills of those you recruit really does make a difference.
As a small business owner, you need to take time not only to find good staff, but to train them well. The more you put into them, the more you will get out. Additionally, investing in the development of your key personnel makes them less likely to leave, which really helps to manage long-term workforce costs.
The amount of time and money it costs to recruit and train new people is significant to smaller businesses, so retaining employees should be high on your priority list.
Should I be protecting my business when key staff are unable to work?
Productivity problems are not just caused by people leaving the business; if a pivotal member staff suffers an accident or serious illness, which leaves them unable to work, the impacts for your company are huge.
In order to protect themselves in this scenario, a number of businesses choose to take out key personal insurance.
If you’re asking the question ‘should I be insuring my key personnel’ and ‘how do I go about doing this?’ the answer is that you should start by determining who are the key personnel in a business, and how you would manage if they were suddenly unable to work. What would be the financial and practical impact?
Should the answer be that your business world struggle to cope, then you may wish to invest in key man insurance. This covers the vital people that make your business work – including yourself – and can offer compensation in the event they are unable to work.
While nothing can replace the skills and knowledge of your core staff, at least with key man insurance you have a financial safety net to safeguard the day-to-day functioning of your company until the key person is able to return to work.
If you feel you could benefit from a little more financial advice then download our guide today, to get started with your workplace pension scheme before it’s too late.