The COVID-19 pandemic brought unprecedented challenges to businesses across the globe. For many SMEs, the government’s furlough scheme played a critical role in retaining staff during periods of economic uncertainty. While the furlough scheme has long ended, the lessons learned from this era remain valuable as businesses adapt to new workforce challenges. In this article, we’ll explore the key takeaways from the furlough scheme and how they inform modern staff retention strategies for SMEs.
Lessons learned from the Furlough Scheme
The furlough scheme was a lifeline for businesses and employees alike, allowing companies to claim up to 80% of wages for furloughed employees. Here are some critical takeaways from the scheme that continue to shape workforce management today:
1. The Importance of record-keeping
Businesses were required to keep detailed records of furlough agreements and payroll submissions. This demonstrated the value of maintaining thorough documentation to ensure compliance with regulations and improve operational efficiency.
2. Adapting to rapidly changing guidelines
The furlough scheme’s evolving rules underscored the need for agility and clear communication. Employers had to stay informed and update their processes quickly, ensuring transparency with employees.
3. Supporting apprenticeships
The scheme allowed apprentices to be furloughed while continuing their training. This highlighted the importance of investing in skill development even during tough times.
4. Building employee trust
By offering clear communication and financial support during the furlough period, businesses fostered trust and loyalty among employees— a key ingredient in long-term retention.
Modern staff retention strategies
While the furlough scheme addressed an immediate crisis, its principles can be applied to today’s retention strategies. Here’s how SMEs can build a resilient and engaged workforce:
1. Flexible Work Policies
The shift to remote work during the pandemic has led many businesses to adopt hybrid or fully flexible work arrangements. Employees now value work-life balance more than ever, making flexibility a cornerstone of retention strategies.
2. Employee Wellbeing
The pandemic highlighted the need for robust mental health support. Employers can offer initiatives such as:
- Access to counselling services.
- Wellness programs.
- Regular check-ins to understand employee concerns.
3. Career Growth Opportunities
Providing employees with clear pathways for advancement is essential. Offer:
- Training programs.
- Mentorship opportunities.
- Succession planning to show employees their future within the company.
4. Building a Supportive Culture
A positive work environment with open communication, recognition and inclusivity helps employees feel valued and engaged.
In this video update, Niel discussed the government’s 2020 furlough scheme and its role in supporting staff retention during a time of economic uncertainty.
The furlough scheme may be a thing of the past but its lessons have equipped businesses with strategies to navigate workforce challenges. By focusing on flexibility, wellbeing, career development and a supportive culture, SMEs can build a resilient workforce ready to face future uncertainties.
To learn more about modern staff retention strategies or to get tailored support for your business, get in touch with the team at People Matters HR today.