Rising operational costs and a squeeze on cash flow mean that offering higher wages cannot be the sole way for companies to fill their vacancies. Employers and recruiters need to find new ways to attract (and retain) the best candidates.
Health and wellbeing benefits have always been valued by employees. But the post-pandemic shift towards hybrid working has increased the focus on work that fits around people’s lives, not the other way around.
On Monday 6 June, more than 3,300 workers at 70 UK companies started working a four-day week with no loss of pay. The trial is based around a 100:80:100 model – 100% of pay for 80% of the time, in exchange for a commitment to maintaining 100% productivity.
Despite a wealth of potential upsides to new working life patterns, there’s a consensus that these changes may not be ready to happen just yet.
- Only 25% of 500 SME employers surveyed currently offer a four day work week.
- A third of employers said they don’t intend to offer a four day week unless they have to.
Natalie Kerr, Chief Commercial Director at NatWest Rapid Cash said, £Recruiters clearly see the four-day working week and personal wellbeing gaining popularity among employees. But many businesses are reluctant to provide a better work/life balance due to increased operational costs.
“At NatWest Rapid Cash, we believe the most effective way for SME employers, and recruiters, to meet staffing challenges is to strengthen their working capital. Cashflow is key when it comes not only to staffing but also to having the flexibility to adopt new models of working, and to make the most of growth opportunities.
“NatWest Rapid Cash has been designed for just this, helping businesses improve their cashflow by unlocking capital in unpaid invoices.”
The post-Brexit landscape, pandemic, conflict in Ukraine and subsequent cost-of-living crisis have all led to operational challenges for SME businesses. And with a four-day working week predicted to have a significant impact on the job market, it will be the companies with the finances to embrace change that will achieve their business goals.
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