Flexibility and wellbeing: How to stand out in a crowded job market

BCC’s survey of 1300 businesses reveals how employers can set themselves apart to attract the best candidates.

In a competitive job market with high numbers of vacancies and low unemployment, attracting and retaining talent is a key priority for businesses – but many firms are struggling to do so.

The current statistics are stark. From May to July 2024, there were 884,000 vacancies in the economy, while the number of economically inactive people (meaning people not looking for work) stood at over 9.4 million. Meanwhile, BCC research shows 62% of businesses report they are experiencing skills shortages, rising to 74% for manufacturing firms. To attract and retain diverse talent fit for the future, it’s clear that businesses need to adapt their workplaces for the modern economy.

The challenge for SMEs is particularly acute. Our research shows 63% of businesses do not have a specific recruitment, training or retention plan for specific groups of workers like under 25s, over 50s, disabled or neurodiverse people, or diverse ethnicities. So, what can an employer do to make their workplace more attractive?

Introducing flexible working can help employees balance work with other commitments. 14% of businesses reported they were unable to hire or retain people specifically because of childcare responsibilities, while 34% see decreased staff morale due to skills shortages. More and more firms are recognising that flexible working makes good business sense. Working from home, compressed hours and job sharing are all examples of flexibilities that could help attract and retain staff.

Health and wellbeing support in the workplace is also now increasingly important to prevent illness becoming a barrier to work. BCC’s 2024 Workforce Survey showed employee uptake of occupational health provision is rising, but fewer than 4 in 10 businesses offered health and wellbeing services. For many SMEs already struggling with rising costs, reducing the tax on workplace insurance and health plans would encourage more employers to offer these services. Taking a more proactive approach to maintaining good health and supporting people back into work when they experience illness makes sense for business and the economy.

Finally, what role does corporate social responsibility play?  Just 1 in 10 businesses told us that they have seen any requests from employees or candidates for evidence of their organisation’s social impact. This suggests the initial focus for businesses looking to attract and retain staff should be on employee benefits and flexible working practices. Nonetheless, there’s no doubt these important commitments could play a greater role going forward.

Employees must be supported to find and thrive in work in order to build a resilient workforce fit for the future. In a tight labour market and under high cost pressures, employers can look to non-pay benefits such as flexible working and health support to set themselves apart. The government should also play a role in removing barriers to work, including better access to occupational health services, to help SMEs and their workforce take advantage of these benefits.

Hannah Larsen, Policy Officer, British Chambers of Commerce