SMEs in SW say ‘growth relies on millennials’
Small and medium sized businesses in the South West believe future success relies on their ability to recruit so-called millennials – those born between 1980 and 2000 – but recognise that they need to do more to attract them, according to new research by Lloyds Bank Commercial Banking.
More than three quarters (79 per cent) of SMEs across the region said that the growth of their business relies on their ability to recruit millennial talent. In fact more than a third (35 per cent) said they want a millennial to take over their business one day.
It is estimated that millennials will account for more than half of the global workforce by 2020 and will shape the workplaces of tomorrow.
Nearly two thirds (63 per cent) of South West SMEs said they feel under pressure to sell themselves to millennials. Indeed, more than a quarter (26 per cent) of firms worry that a job offer has been turned down in the past because the young candidate didn’t like their business culture.
In fact, the survey showed that nearly two thirds (62 per cent) of millennials in the South West would turn down a job offer if they didn’t like a company’s culture, even if the salary was right.
Because of this, more than two fifths (41 per cent) of businesses in the region think the balance of power has shifted to millennials within the recruitment process.
As such, South West SMEs are reviewing and adapting their working practices, with most (92 per cent) prepared to do this to secure the services of millennials.
To this end, small businesses in the region are on average investing 19 per cent of their annual turnover just on recruiting this generation.
When asked what they are looking for in a job the most popular answer, cited by 48 per cent of millennials in the South West, was flexible working hours, followed by the variety of work offered by smaller firms (38 per cent) and the opportunity to work from home (33 per cent).
While 53 per cent of SMEs across the region think their business is already geared up correctly to attract millennials and offer them this kind of working environment, 35 per cent said they needed further guidance – such as enterprise mentoring support – to recruit this age group more effectively.
The most attractive skills South West SMEs want in millennials are their fresh ideas (65 per cent), a different perspective (35 per cent) and digital skills (32 per cent).
David Beaumont, area director for SME Banking in the South West, Lloyds Bank Commercial Banking, said: “SMEs in the South West need to work hard to recruit millennials, as the future of their business could depend on having them on board. They can tap in to a range of attributes, from hard skills such digital and technological know-how, to fresh ideas and new perspectives.
“Although SMEs in the region are beginning to invest and change their business culture to make themselves more attractive, they also tell us that they need help to find the right people.
“Whether it’s marketing, financial support or digital expertise, for example, there’s a whole wealth of guidance available to them via our local relationship managers and national network of enterprise mentors. With this support, South West SMEs will be better placed to make a success of their millennial recruitment drive and ensure long-term business success.”
