Retaining staff is greatest challenge for SMEs

Many companies are not getting their vacancies filled, yet hiring is not the single greatest challenge for SMEs. Six out of 10 SME business leaders say employee retention (retention) is the most important HR challenge for the second half of 2022. Not entirely illogical, because by focusing on retention, you avoid having to look for (additional) new employees. After all, 'finding the right employee' ranks #2 among the greatest HR challenges.

According to SMEs, there are several actions that can help increase retention. For a majority of SMEs (63%), the focus today is already on wellbeing and motivation. 23% would like to work around that in the future. In addition, 51% focus on offering an attractive pay package (27% will focus more on this in the future), and again 51% focus on diversity equality and inclusion. And this is positive, because thanks to a broader and inclusive outlook, companies will discover new talents and become a more representative reflection of today's society. Flemish support grants will soon also be extended, which could give a further boost to inclusion policies.

Offering an attractive salary package scores high in the action areas concerning retention among SMEs. The SME work barometer reveals that SMEs rarely use a cafeteria plan, in which various benefits such as extra holidays, pension savings, a company car, etc. can be included.  Only 6% of SME business leaders who bet on an attractive pay package already offer a cafeteria plan. One in four do say they are considering its introduction.