Gift Focus - Jul/Aug 2019 (Issue 114)

139 BUSINESS ADVICE ABOUT FEDERATION OF SMALL BUSINESSES As the UK’s business support group, FSB is the voice of the UK’s small businesses and the self-employed. Established more than 40 years ago to help its members succeed in business, FSB is a non-profit making and non-party political organisation that’s led by its members for its members. As the UK’s leading business campaigner, FSB is focused on delivering change that supports smaller businesses to grow and succeed. FSB offers members a wide range of vital business services, including access to finance, business banking, legal advice and support along with a powerful voice in the government. Each year, FSB also runs the UK’s Celebrating Small Business Awards. More information is available at fsb.org.uk . You can follow us on twitter @fsb_policy and on Instagram @fsb_uk. However, it’s not just about donating time and money to good causes and community groups – small businesses are agents of social change. Small firms often fill the gaps that larger firms don’t, providing skills, training and jobs for people further from the labour market. This could be taking on younger people or older workers, those with disabilities and mental health conditions and those with low levels of educational attainment. The research reflected just that, with almost all small business employers telling us that they have taken on at least one person from a traditionally labour market-disadvantaged group. Across the country, more than one in three have a member of staff with low levels of education, and a similar share employ at least one person with a known disability or mental health condition. More than half employ someone aged 16 to 24, and a quarter took on an employee with English as a second language. We spoke to businesses that take on new work experience students every three months, those that go into schools to share their experience and knowledge and business owners who take on ex-offenders and help them to develop their skills. Flexibility is often key for employees, and small businesses tend to offer their staff working arrangements that are good for them. We found that the vast majority do offer their staff flexible working, be it flexitime, staggered or reduced hours. Many recognise the benefits that come with doing so, including reduced staff absences and cost savings. CHANGING POLICY This contribution is often overlooked by policy makers. It’s crucial that the government starts to recognise the fundamental role played by small firms in their local communities. Making it easier for them to support those who are disadvantaged in the jobs market is key to this. Back in 2017, the Conservatives promised that – if they were elected – they would introduce a one-year National Insurance contributions holiday for firms that take on those with a disability, mental health condition or who have been out of work for some time. This has not come to fruition. Two years later, it must be prioritised. With the labour market tightening, EU migration down and skills shortages starting to bite, it’s more vital than ever that this incentive is made available. WORK EXPERIENCE Building on the efforts that small firms already make when working with young people is key. More than four in 10 employers actively engage with schools, colleges or youth organisations. A similar proportion offer work experience, either as part of their recruitment process or as a result of community outreach efforts. With more youths than ever before taking part in higher education, we need to make sure that young people are work- ready when their education finishes. That means giving them exposure to the business world at an early age. And to make this happen, more needs to be done to help small businesses provide work experience. That’s why we’ve been lobbying the government to take a fresh look at introducing compulsory work experience in schools across England, learning from previous approaches to build in flexibility for small firms. SUPPORTING SICK STAFF If you’re running a micro business and a member of your team is away for a long stretch, you’ll know it can cause a lot of financial pressure. With teams by their very nature smaller, it can be a challenge to manage. Our research highlighted that more than a third found sickness absence has cost them more than £1,000 in the past 12 months. Small business owners are keen to provide support when staff are suffering from ill health. However, they often need help to make that possible. The return of a targeted initiative, drawing on the precedent set by the Percentage Threshold Scheme, would help address this challenge, allowing employers to recoup some of the costs they incur from long-term staff absences. With 5.6 million small businesses in the UK, their contribution is not only incredible but essential for creating a more diverse and productive workforce. To read more about FSB’s Small Business, Big Heart report visit the publications section of our website. “With more youths than ever before taking part in higher education, we need to make sure that young people are work-ready when their education f inishes. That means giving them exposure to the business world at an early age. And to make this happen, more needs to be done to help smal l businesses pr ovide work experience.”