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Two in five small businesses worried that staff won’t return from furlough

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by Startacus Admin

New research by small business lender iwoca reveals the concerns small business owners have about staff returning to work after furlough

pexels-photo-842554As furlough nears its end, research by iwoca, Europe's largest small business lender, has revealed that two in five small business owners are concerned that employees will choose not to return, with female business owners being particularly unsure - almost half have expressed concern.

The findings suggest that these concerns could have a significant impact on their business. One in six small business owners believe that at least half of their furloughed workers will choose not to return when the scheme finishes, including 9% who say that none of their furloughed workers will opt to come back.

These concerns coincide with recent analysis of Companies House data by iwoca which revealed a 32% increase in the number of new business registrations in H1 2021 compared to H1 2019, suggesting that some furloughed workers are looking for new job opportunities or even choosing to start their own business opportunities or even choosing to start their own business rather than return to their current employment.

Seema Desai.However, the employment outlook is still positive, with more than two-thirds of small businesses looking to hire in the next year.

Seema Desai, Chief Operating Officer at iwoca: “The furlough scheme has been a lifeline for hundreds of thousands of jobs across the UK, but it’s concerning how many small business owners who still have people on furlough fear that their staff won’t return when the scheme ends.

“Managing staff turnover often requires significant time and effort, and it is likely that many small business owners will have to make this investment in the coming months in order to keep growing their businesses."

The impact of furlough and the future employment outlook will be on the radar at our upcoming hybrid Work: In Progress event. We’d love you to join us!

Work in Progress

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Published on: 30th September 2021

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