This can come at a cost for employers as studies show, due to higher absenteeism and lower productivity, a disengaged employee can cost an organisation almost £2.8k for every £8.2k of salary, or 34%.

Three in ten (30%) employees said they would be more engaged in their role if they were given more freedom. This perhaps reflects the growing demand for more autonomy and flexible working highlighted by the COVID-19 pandemic.

Sodexo Engage’s survey collected responses from over 1,000 SME employers and employees in England and presents insights on relevant HR trends including reward and recognition, engagement and future of work. While better pay will nearly always top the list, the research found the other top drivers of engagement among SME employees are:

1. Better pay – 45%
2. Better work/life balance – 36%
3. Better employee benefits – 33%
4. More opportunity to upskill – 33%
5. More freedom in their role – 30%

When lockdown forced people to work from home, many employees found a remote working arrangement suited them better and were reluctant to return to the office once they reopened. Employers who listen to their staff and accommodate working preferences, including introducing flexible hours as well as location, may well see this gesture of trust repaid to them through improved employee engagement and overall performance.

A healthy work life balance was also ranked a key driver of engagement by SME employees (36%). It is something that is already on the HR radar, ranked as a top priority for 2022 by four in ten (40%) SME employers. By championing their lives outside of work, employers can make their staff feel cared for and valued.

The third ranked driver of engagement among SME employees was a better benefits package (33%). Employers who invest wisely in their offering will certainly get out what they put in and see a generous return on their investment. The best perks for employers to spend on are those that reflect the individual needs and demand of staff, and have a personalised touch – something which is more attainable among smaller workforces. The most popular benefits ranked by SME employees are Flexitime (24%) – that is, being able to choose the hours you work – private healthcare (23%), working from home (20%), and private dental care (20%).

Graham James, Director at Sodexo Engage, comments: 

“SMEs can create work cultures that truly tap into what employees are looking for. With more agility they can create cultures that better suit their people and their goals, provide the benefits that their employees truly find beneficial, and can find ways of working that work for everyone.

“While wages will always need to be competitive, SMEs can tap into the hearts and minds of their employees. With that ‘family feel’ culture, there is a great ability to build trust and have the necessary conversations needed to build a better place to work. The organisations that succeed during this ‘Great Resignation’ will be those that listen and take action, demonstrating that employees are important members of the team, and not just cogs in a machine.”