More than a quarter (27%) of SMEs have no wellbeing budget at all with the situation being even worse for micro businesses.
Furthermore, 58% of SMEs agreed that current taxation policies actively hindered their ability to invest in employee wellbeing, while two thirds (66%) said they would increase spending on wellbeing initiatives if stronger tax incentives were introduced.
Research by YouGov among more than 2,000 businesses for Unum UK showed nearly half (47%) of micro businesses lacked a wellbeing budget.
The research also found just 6% of SMEs and 3% of micro businesses believed government guidance on their wellbeing responsibilities was clear.
Around 57% of SMEs said a more supportive regulatory environment would encourage greater investment in employee wellbeing.
Mark Till, chief executive officer of Unum UK (pictured), said: “Ahead of the Budget and in light of the recent Keep Britain Working report, we are calling on government to step up by offering clearer guidance, introducing meaningful tax incentives and raising wellbeing standards. It’s time to remove the barriers and make it easier for SMEs to invest in their people.”
Till added the Keep Britain Working review had “reignited” the conversation around productivity, workforce health and the critical role SMEs played in driving economic recovery.
“Now is the time to act and unlock greater investment in employee wellbeing. UK SMEs are under pressure: sickness absences are at their highest in 15 years, productivity is flatlining and budgets are tighter than ever,” he continued.
“The appetite to invest in people is there – what’s missing is support. With the right policy framework, SMEs can unlock productivity and growth through better wellbeing investment.”