Working practices have evolved post Covid for many small and medium sized enterprises, with eight out of 10 now embracing report working arrangements.
A new report from Indeed, in partnership with Small Business Britain found a total of 78 per cent of SMES allow flexible working hours, with more than a third (35 per cent) enabling employees to work from home.
The ‘People for Business’ report says this agile response to the changing work environment reflects the commitment of SMEs to adapt and thrive, but it also reveals challenges that need to be addressed.
The Talent Dilemma
While SMEs value their workforce as a cornerstone of their success, the report highlights a significant concern: 51 per cent of SMEs cite hiring the wrong staff as a major obstacle to growth. Furthermore, 59 per cent state that this challenge results in increased pressure and stress on their business operations.
Embracing Artificial Intelligence
The report also delves into the role of technology, particularly artificial intelligence (AI), in shaping the future of small businesses. A notable 38 per cent of SMEs are actively exploring the potential of AI within their operations. Over a third (38 per cent) have either used AI or are considering its adoption, reflecting a growing appetite among the UK’s 5.5 million small businesses to leverage cutting-edge technology. However, the report indicates a need for further support and skills development in this area, as only 22 per cent of SMEs feel confident in their understanding of how to effectively deploy AI within their business processes.
People Remain Central
Despite the rapid advancement of technology, this report underscores that human capital remains at the core of Britain’s small businesses. Only 6 per cent of business owners reported staff reductions due to new technology, a statistic balanced out by the 10 per cent who have created new roles dedicated to managing digital initiatives.
The report paints a comprehensive picture of how small businesses in the UK — which make up 99.2 per cent of the nation’s total business population —are navigating the challenges and opportunities presented by the modern business landscape.
SMEs are demonstrating their resilience and determination to thrive in an ever-changing world by embracing remote work, exploring AI, and prioritising their workforce. These businesses, which make up 99.2% of the nation’s total business population, continue to be the backbone of the UK economy, and the “People for Business Report” showcases their unwavering commitment to unlocking their full potential in the post-pandemic era.
Indeed managing director Bill Richards says: “Artificial Intelligence is on the lips of almost every business we speak to as the boom in interest in AI continues and the opportunities it presents become more tangible than ever before.
“AI also has an important role to play in making the hiring process simpler and faster for small businesses, allowing owners to focus more on human experiences and interactions.”
