Only 33% of the UK’s smallest businesses prioritise sustainability, compared to 53% of all companies, according to Zest.
Increased employee demand has led 44% of HR leaders to report more requests for sustainable benefits in the past year. However, just 35% of HR leaders at businesses with 10-49 employees reported the same trend.
53% of businesses report a rise in employees caring about sustainability over the past year. Additionally, 52% of businesses report offering more sustainable benefits to employees. Furthermore, 29% of HR leaders believe that sustainable benefits are now a top priority for employees.
The research shows 45% of businesses see more employees concerned about the environmental impact of company pension schemes.. However, this was a noticeable trend for just 31% of the UK’s smallest businesses.
The UK’s smallest businesses are at risk of being left behind by larger competitors when it comes to boosting sustainability credentials. Only 25% of businesses with 10-49 employees prioritize sustainability, versus 34% of all UK businesses.
Only 21% of the UK’s smallest organisations view sustainable benefits as crucial for green targets, versus 32% of all businesses. Additionally, 24% of these small businesses view sustainable employee benefits as a trend, higher than the 18% UK average..
The research demonstrates the commercial advantages of prioritising sustainable benefits – 32% of businesses say these benefits increase morale, 32% say these benefits helped to better attract and retain employees. A fifth (18%) of HR leaders admit their businesses have lost talent due to a lack of sustainable benefits.
Small businesses that ignore sustainability may risk losing talent and productivity, impacting their competitiveness.
Matt Russell, CEO of Zest said: “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. 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.”
Employers can use Zest’s ROI Calculator to learn more about potential savings on employer NI contributions as well as approaches to reduce talent loss and boost productivity.
