A new survey by Fiverr has revealed that one in four owners at UK small and medium-sized businesses (SMEs) have turned to self-employed workers to help plug talent gaps. A quarter SME owners had said that cuts to permanent staff had seen them engage the services of freelancers during busy periods. 23 per cent of those surveyed said they were planning to reduce headcounts due to rising costs.
The study, conducted among 1,000 UK SME owners and decision makers, highlighted the struggles facing many smaller businesses, with rising inflation estimated to have cost SMEs in the UK an average of £186,249 each, according to Fiverr.
85 per cent of respondents say their firms have lost money over recent months, due to a combination of increasing living costs and rising inflation. This has led to many staff struggling to meet ends meet, with 22 per cent of those polled saying that staff have made salary increase requests.
While 21 per cent reported working longer hours and 24 per cent noted reduced morale, the survey did also find some hope among SME owners. 56 per cent said they felt positive about their business’ future, with 29 per cent planning to implement remote and hybrid work options to help reduce overheads and associated physical costs. 34 per cent were planning to implement measures to help them better prepare for future increases in inflation.
50 per cent said they blamed the UK government for being unprepared for the rapid rise in inflation. The worst affected sectors according to the study were arts and culture, with an average loss of £280,790 per business, HR with an average loss of £254,107 and architecture, engineering and building, with a £244,104 average loss.
Fiverr’s VP of International Expansion Peggy de Lange said: “UK businesses have proven their resilience over the past couple of years but the cost-of-living crisis has undeniably delivered another obstacle on the path to recovery.”
“Changes to headcount and working arrangements are unfortunately a necessary evil during cost-saving periods, but business leaders must continue to support their staff to ensure issues like reduced morale and longer hours do not turn into something more serious like a burnout.”
“It’s therefore encouraging to see savvy business leaders turning to support like freelancers to plug any gaps during busy periods.”
