Small Business Employees Help Fight the Recession
Loyal SME employees are working extra hours to help their businesses stay afloat
The research, which was carried out by Make It Cheaper and involved 1000 businesses, showed that almost half of employees surveyed have accepted a pay freeze, agreed to work less hours, or have even worked overtime for no extra money, in order to help their business get through the worst.
The survey shows that just 21% of managers believed their employees accepted the changes because of fear of losing their jobs, while over half (54%) claim that it is their employees’ dedication that led to their acceptance of the circumstances.
Over 78% of those surveyed have not had to make redundancies in the past year, and 12% foresee that they may have to do so. Aside from staff redundancies, the most successful money-saving scheme involved saving energy, with 21% reporting significant savings by monitoring and improving their rate of energy consumption and wastage.
The research also discovered a generally positive outcome with reference to the coming financial year, as over half of respondents (57%) believe that the economy will stabilise.
Make It Cheaper’s Managing Director Jonathan Elliott commented:
“This research shows that our small businesses, which represent 51% of the UK GDP, can be proud of their staff and safe in the knowledge they will be supportive and inventive when times are tough.
“Companies are becoming leaner and so will be more profitable as and when things improve. Perhaps employees should take this opportunity to map out a future pay rise when milestones are reached.”
The research also revealed a range of strategies to help SMEs cope in the difficult economy, which included writing to MPs to protest about the rise in VAT, using online voucher codes for cheaper business shopping, and building local relations to increase business opportunities.