Member Article

The future of North East SMEs relies on millennials, says Lloyds Bank

SMEs in the North East believe future success relies on their ability to recruit so-called millennials – those born between 1980 and 2000 – but recognise that they need to do more to attract them, according to new research by Lloyds Bank Commercial Banking.

More than eight in ten (81 per cent) SMEs said the growth of their business relies on their ability to recruit millennial talent. In fact, a fifth (19 per cent) said they want a millennial to take over their business one day.

It is estimated that millennials will account for more than half of the global workforce by 2020 and will shape the workplaces of tomorrow.

Almost two thirds (65 per cent) of SMEs in the North East said they feel under pressure to sell themselves to millennials. Indeed, over a quarter (28 per cent) of firms worry that a job offer has been turned down in the past because the young candidate didn’t like their business culture.

In fact, the survey showed that close to half (47 per cent) of millennials in the North East would turn down a job offer if they didn’t like a company’s culture, even if the salary was right.

Because of this, more than one in four (44 per cent) of the region’s businesses think the balance of power has shifted to millennials within the recruitment process.

As such, North East SMEs are reviewing and adapting their working practices, with most (84 per cent) prepared to do this to secure the services of millennials.

To this end, local small businesses are, on average, investing 15 per cent of their annual turnover just on recruiting this generation.

When asked what they are looking for in a job, the most popular answer, cited by 53 per cent of millennials, was flexible working hours, followed by training opportunities (47 per cent) and the option to work from home (20 per cent).

The most attractive skills SMEs want in millennials are their fresh ideas (59 per cent), a different perspective (56 per cent) and digital skills (38 per cent).

Leigh Taylor, area director for SME Banking at Lloyds Bank Commercial Banking in the North East, said: “SMEs need to work hard to recruit millennials as the future of their business could depend on having them on board. They can tap in to a range of attributes, from hard skills such as digital and technological know-how, to fresh ideas and new perspectives.

“Although SMEs are beginning to invest and change their business culture to make themselves more attractive, they also tell us that they need help to find the right people.

“Whether it’s marketing, financial support or digital expertise, for example, there’s a whole wealth of guidance available to them via our local relationship managers and national network of enterprise mentors. With this support, SMEs will be better placed to make a success of their millennial recruitment drive and ensure long-term business success.”

This was posted in Bdaily's Members' News section by Ellen Forster .