Small businesses are suffering a staff brain drain with nearly one in five workers quitting each year for new jobs blaming poor employee benefits, research shows.
The study by Pure Benefits, the first service helping firms employing up to 50 staff to buy employee benefits quickly and efficiently, found 18% of staff – around 450,000 a year - have switched in the past five years saying a lack of benefits was a major reason.
Small businesses with fewer than 50 staff employ more than 12.4 million across the UK and have total annual turnover of more than £1.2 trillion but struggle to source employee benefits such as life insurance, income protection and private medical insurance for staff, Pure Benefits warns.
Its research found 63% of small business owners are confused by the employee benefits options on offer and don’t know how to find cost-effective solutions for staff. More than a fifth of owners (22%) say they do not offer any benefits.
Pure Benefits enables business owners to source cost effective benefits including life insurance, income protection, dental insurance, business travel insurance, critical illness and key person cover from leading providers including Unum, Aviva, Vitality, National Dental Plan and Millstream.
The online service is designed to be quick and efficient and to address administrative and compliance issues for small companies focused on growing their businesses and protecting staff.
Stuart Gray, founder and chairman of Pure Benefits says: “The small business brain drain is a growing issue for small companies with nearly one in five staff leaving every year simply because they are not receiving the benefits the big firms provide".