the business ladder

The price comparison service, Make It Cheaper, having performed some research have found that 45% of employees in small-scale companies have agreed to work fewer hours in the mind that it could help the businesses survive the effects of the recession.

Make It Cheaper composed the survey through the questioning of over a thousand businesses, the results of which suggested that almost 50% of the employees asked have accepted to freeze their pay, work fewer hours, or work more hours than scheduled for no overtime. Such conditions are being accepted as means through which to help their businesses survive the economic downturn.

Only 21% of the managers questioned thought that their workers only accepted the alterations through fear of losing their positions, whilst more than 54% felt that it was their employees’ commitment to the company that meant they consented to the changes.

The past year has seen 78% of those questioned not having to make cuts to their number of employees, however, 12% feel that they may have to make redundancies in the future. Other than cuts in jobs, the greatest way through which businesses can save money is scrutiny of any energy wastage that they may have, with 21% finding that they could make significant saving by watching and improving their levels of energy wastage and overall consumption.

The survey also found that attitudes towards the coming economic year were by and large positive, with over 57% of those questioned believing that the financial condition of the country will stabilise.

Managing Director of Make It Cheaper, Jonathan Elliott, remarked: "This research shows that our small businesses, which represent 51% of the UK GDP, can be proud of their staff and safe in the knowledge they will be supportive and inventive when times are tough. Companies are becoming leaner and so will be more profitable as and when things improve. Perhaps employees should take this opportunity to map out a future pay rise when milestones are reached."

The survey further identified a number of approaches to assist  SMEs in this weakened economy, including encouraging business owners to protest the rise in VAT, making the most of online vouchers to help them do their business shopping at a discount, and increasing business opportunities through links to local relations.

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