As the UK government prepares to deliver its first Budget on October 28, a recent study by Employment Hero highlights a concerning divide among Northern firms regarding the impact of devolution on their businesses. Our analysis suggests that HR leaders must take heed of these concerns and proactively address the needs of smaller firms to ensure a more inclusive and equitable growth strategy.
The research reveals a significant confidence gap between micro-businesses (1-4 staff) and larger SMEs (50-249 staff) regarding the practical support devolution will provide. While 75% of SMEs overall are optimistic about the government's plans, only 55% of micro-businesses share this confidence. Furthermore, half of micro-businesses do not expect a tangible benefit from devolution in the next 12 months, compared to 84% of the largest SMEs.
This disparity is particularly concerning, as smaller firms are often the backbone of local economies. To bridge this confidence gap, HR leaders must prioritize proactive communication and engagement with these smaller firms. This includes providing tailored support and resources to help them navigate the complexities of devolution and capitalize on its benefits.
The study also highlights a concerning lack of confidence among part-time workers (43%) and self-employed workers (39%) regarding the government's promise of 'good growth in every postcode.' HR leaders must recognize the importance of inclusivity in their growth strategies and ensure that all employees, regardless of employment status, feel valued and supported.
In conclusion, the devolution debate presents a critical opportunity for HR leaders to demonstrate their commitment to inclusivity and growth. By prioritizing proactive communication, providing tailored support, and recognizing the value of all employees, HR leaders can help bridge the confidence gap and ensure that the benefits of devolution are shared equitably across all firms, regardless of size.