HR software provider Breathe has revealed the cost of poor company culture: a staggering ยฃ20.2 billion per year.
The report, โThe Culture Economy 2021โ, has shown that almost a third (27%) of SME employees quit their job due to poor workplace culture, an increase of 6% from last year (21%). It found that 9 in 10 (87%) SME employers say staff remained productive despite challenges faced in 2020. Only half (53%) of SMEs surveyed report introducing new measures relating to health and wellbeing of their teams, while a fifth of employees (21%) say their employer has not taken any steps to help them cope with the pandemic at all.
With aย mental health pandemic on the horizon potentially spanning a decadeย and physical health anxieties increased by the virus, businesses are under pressure to introduce adequate safeguarding measures. Whatโs more, in view of theย economy shrinking by 7.9% since before pre-lockdown, maintaining cashflow and revenue streams remains an urgent priority, and challenge, for business survival.
Jonathan Richards, CEO and Founder of Breatheย commented: โThe effects of lockdowns and extended isolation will be felt for a long time, so itโs never been more important for businesses to invest in building a culture that can survive the separation and offer support where it is sorely needed. Maintaining high productivity levels can only be possible if your people are looked after properly, otherwise this wonโt be a sustainable outcome. Staff retention and churn issues despite the shrinking economy is surprising but proves people wonโt stand for mistreatment in any scenario and will leave a job that doesnโt support them. We urgently need to see cultural changes happen to remedy this. Much more needs to be done in keeping people safe, mentally and physically, if at least from a work perspective.โ
More key findings:
- Culture curbedย โ only half (51%) of employees said they were satisfied with their employerโs efforts in maintaining positive remote culture during the pandemic. Almost a third (27%) quit due to culture, emphasising the importance of work community and impact on employee retention
- Cashflow concernsโ almost half (46%) of SMEs cite their biggest worry as maintaining or increasing revenues in 2021, followed closely by managing the business while working from home (28%)
- Motivation and productivity challengesย โ according to almost a third (32%) of SME employees surveyed, staying motivated and productive in the next 12 months will be their biggest challenge
- Managing staff sickness a struggleโ
A third (30%) of employers in the education sector report staff sickness as a huge challenge. This is unsurprising given close contact, crowded indoor working environments
41% of healthcare employers say managing staff absences due to sickness was a significant challenge, again reflecting the close contact with the virus
Other industries struggling with managing sick leave were utilities (33%) and IT (33%). This could be attributed to the increased demand and stress on staff to perform in running key infrastructures underpinning the digital economy
- Career pivotโ interestingly, almost a quarter (24%) of SME employees surveyed said they are not afraid to pursue a different career in a different industry, signalling a generational culture shift and cause for concern for some industries struggling with staff retention
The report also explores physical support offerings, working from home attitudes, mental wellbeing practices and more.
Richardsย added:ย โItโs clear we have witnessed a profound culture shift in 2020, with the majority of employees experiencing extreme pressures in not only work but their personal lives, too. Many are now living in their workplace and weakening boundaries between leisure and labour can only do harm. Businesses must recognise that work practices need to keep pace with the increased stress levels and more must be done to create a community, digital or physical, to support each other through these hard times.โ
Rachel King, Marketing Director at Breatheย offered: โSMEs and mid-market firms are in a strong position when it comes to adapting to uncertain market conditions. With our nimble nature, we can quickly implement new measures, and those relating to employee wellbeing should be top of the list. Business continuity wholly relies on people, so putting them first means demonstrating commitment to company culture and mental health safeguarding. We must remember that by staying connected we have achieved unbelievable things, but trouble lies ahead for employers who lose sight of their duty of care.โ
The fullย Culture Economy 2021ย report is availableย here.
