Businesses are suffering ‘brain drain’ as one in five workers are quitting each year.
Research from provider Pure Benefits has found that 18% of staff at small firms are switching jobs because of a lack of benefits. This amounts to approximately 450,000 employees a year.
Small businesses with fewer than 50 staff currently employ more than 12.4 million across the UK and have a total annual turnover of more than £1.2 trillion. Despite the large turnover, it appears that they still struggle to source employee benefits such as life insurance, income protection and private medical insurance for staff.
The study also revealed that almost two out of three bosses (63%) of small businesses are confused by benefit options and don’t know how to find cost-effective solutions. More than a fifth (22%) stated they did not offer any benefits.
Pure Benefits found that pension (77%) and income protection (20%) were the benefits most often provided by small businesses.
Stuart Gray, founder and chairman of Pure Benefits says: “The small business brain drain is a growing issue for small companies with nearly one in five staff leaving every year simply because they are not receiving the benefits the big firms provide.
“That is a major brake on the ambitions of small business owners who our research shows are committed to expansion. Around 80% of companies told us they want to grow while 47% say they want to protect their business.
“Well-designed and cost-effective employee benefits are a major driver in enabling businesses to grow and ensure staff feel valued and are more productive as a result.”
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