Research from employee benefits technology company Zest has found just a third (33 per cent) of the UK’s smallest businesses have made introducing sustainable benefits a top priority compared to 53 per cent of all companies.
The figures are partly driven by increased demand from employees with over four in ten (44 per cent) HR leaders claiming that the number of employees requesting sustainable benefits has increased in the last year. However, just 35 per cent of HR leaders at businesses with 10-49 employees reported the same trend.
Over half (53 per cent) of businesses say there has been a rise in the number of employees who care about sustainability over the last year while 52 per cent say the number of sustainable benefits offered to employees has increased. Three in ten (29 per cent) HR leaders believe that sustainable benefits are now a top priority for employees.
The UK’s smallest businesses are at risk of being left behind by larger competitors when it comes to boosting sustainability credentials. Just 25 per cent of businesses with 10-49 employees say that improving sustainability is a top priority for the organisation, compared to an average of 34 per cent amongst all UK businesses.
The research demonstrates the commercial advantages of prioritising sustainable benefits – 32 per cent of businesses say these benefits increase morale, a third (32 per cent) say these benefits helped to better attract and retain employees. A fifth (18 per cent) of HR leaders admit their businesses has lost talent due to a lack of sustainable benefits.
“With employees more focused on sustainability than ever before, organisations need to ensure they are boosting their sustainability efforts including within the benefits on offer,” says Matt Russell, CEO of Zest. “Given the strong link with business performance, those who aren’t investing in sustainability risk losing ground to competitors and reducing profitability. It’s already a hugely challenging time for leaders to operate SMEs, the last thing they need is to lose key talent and see productivity decline by ignoring their sustainable impact.”
