Barclays has recently divulged that approximately two-thirds (66%) of the United Kingdom’s small and medium-sized enterprises (SMEs) are grappling with hiring individuals from Gen Z – those below 25 years old.
A significant 51% fear that this younger demographic is unenthusiastic about working for an SME.
Competitive compensation has emerged as a pressing issue for SMEs.
More than one-third (38%) express concerns that Gen Z believes larger enterprises provide superior salaries and additional job benefits.
Indeed, only slightly less than a quarter (24%) of first-time job hunters consider working for an SME.
SMEs: A Crucial Launchpad for New Recruits
SMEs believe they can provide greater adaptability in work arrangements (39%) such as remote or hybrid work opportunities (32%).
This aligns with almost a third (31%) of first-time jobseekers prioritising flexible work as a significant factor in their career start.
Contrary to the perception of larger corporations offering better career advancement (36%) and increased recognition (27%), SMEs insist they can provide entry-level workers with a chance to influence the business direction significantly (30%) and a platform for wider skill development (28%).
Furthermore, over two in five (41%) SMEs are intensifying their efforts to draw the younger generation by investing in their local communities and forging alliances with nearby schools and colleges.
Barclays’ Perspective on the SME Recruitment Challenge
Hannah Bernard, Barclays‘ Head of Business Banking, highlights: “We know recruitment is a challenge for small and medium sized businesses up and down the UK and the last few years has brought with it a large shift in how we all view the world of work.
“It’s therefore unsurprising that entry-level workers or Gen Z are being extremely transparent about what they are looking for from their first job role, providing businesses with a great opportunity to adapt.
“SMEs have a critical role to play in local communities, enabling the next generation to harness a broad skillset and further career opportunities for progression.
“As the cornerstone of the UK economy, it’s important we recognise and highlight the fantastic opportunities available within these types of businesses as well as the need to adopt a slightly different approach to recruitment, in order to engage top tier talent for junior roles.”
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