Skip to main content Skip to navigation

ReWAGE News Archive

Show all news items

What research tells us about job quality in small firms – and what this means for policymakers

There’s no doubt that job quality matters to employees, and that it is also important for employers – if workers value the quality of their jobs they are likely to show commitment and dedication, which can in turn lead to enhanced efficiency and productivity.

ReWAGE’s new evidence paper Job Quality and Productivity in the Small Firm looks at the different characteristics and working practices of large firms and smaller firms and what impact this has on ensuring a good working experience for their employees.

A 2-page summary of the paper is also available.

Why is this important? Because small firms (those with up to 50 employees) account for about 34 per cent of private sector employment in the UK – a not inconsiderable number.

Policymakers seeking to either offer support or attempting to measure the quality of jobs in the UK need to consider the unique characteristics of small firms when developing advice, guidance or interventions.

ReWAGE co-chair Professor Chris Warhurst (IER, University of Warwick) says:

“The aspects of jobs that matter can vary from employee to employee and what they value can influence the type of organisation they choose to work for. Research shows that workers’ assessment of their own job quality can appear paradoxical – for example although wages and other objective features of jobs in small firms tend to be poor, satisfaction with jobs and with managers is relatively high. Similarly, small firms tend to lack formal procedures for equal opportunities, but workers are more likely to report that they are treated fairly.

“Small firms need to be understood on their own terms and the lived experience of small business owners needs to be fully appreciated. It is often at odds with current policy thinking on how to help small businesses. What's needed is tailored advice and support for their needs. Initiatives developed by trusted intermediaries in promoting job quality and more productive use of human resources are likely to be more effective than ‘one size fits all’ government programmes.”

Tue 21 Feb 2023, 11:04