Running a small business is rarely straightforward. Things like economic uncertainty, rapid technological change, evolving employee expectations and increasing compliance demands can make it feel as though the ground is constantly shifting.
And the uncomfortable truth is that much of this is out of your control. Yet there’s also a reassuring reality: businesses that remain competitive over time tend to focus on the internal systems and behaviours that support long-term performance.
Here are five key things SMEs can do to build stronger foundations for a brighter future.
1. Focusing on what you can control
CIPD’s Good Work Index reinforces the link between job quality and performance, showing that when people experience work positively, organisations benefit through stronger outcomes and lower attrition. The report notes, “Staff who see good prospects for development and advancement are more likely to say they perform better, recommend their employer and go the extra mile for the organisation. They are also less likely to see themselves quitting”.
For SMEs, this is good news. You might not be able to influence market forces, but you can still influence job design, development opportunities, management quality and everyday working practices – all of which directly affect performance and retention.
2. Creating learning pathways for clear staff development
Most SMEs understand the importance of mandatory training. Health and safety, GDPR and other core requirements are non-negotiables. But compliance alone doesn’t build capability or confidence.
The CIPD Learning at Work Survey highlights a growing disconnect between learning activity and organisational impact, “Building skill, shifting behaviours, developing leaders and creating successors require more than a course; they require an environment where people feel comfortable to practise, learn and fail”.
For small businesses, this is where structured learning pathways can add real value. Simple, role-specific or team-based development routes help employees see how learning links to progression, performance and purpose – they’re not just ticking the company’s compliance boxes, they’re getting something out of it themselves too.
3. Motivating your workforce the right way
Pay matters. But on its own, it rarely delivers sustained motivation.
Gallup’s latest State of the Global Workplace makes this clear, highlighting that engagement and discretionary effort are driven far more by how people experience their work than by pay alone. “When employees are engaged, they are more productive at work. They are absent less and produce more. They build better customer relationships and close more sales. So, what engages work teams the most? Their manager.”
For SMEs operating with limited budgets, it’s an important insight. Simple, consistent behaviours – like saying thank you, recognising effort, involving people in decisions, and making work feel meaningful – may have a greater impact on productivity and customer outcomes than pay rises.
4. Using technology to simplify work (not complicate it)
SMEs will see the biggest benefits when technology reduces admin and friction, rather than adding complexity.
On the positive side, adopting digital tools can help improve productivity by streamlining processes and freeing up time for higher-value activities. However, while new tech can be a powerful enabler, the wrong solution could be an unnecessary distraction. From AI to your LMS, it pays to choose wisely!
5. Strengthening internal culture
Be honest: how many employees have really read your brand guidelines? While you might have an impressive mission and vision statement, it’s only as effective as what’s happening on the ground.
Workplace culture is shaped by what people experience every day. For SMEs, consistency is key: how decisions are made, how people are treated, how mistakes are handled, and how learning is encouraged. Making sure you’re all living and breathing your brand isn’t about drinking the Kool-Aid; it’s about creating a workplace where what you say you stand for is consistently reflected in how the business actually operates.
One final thought
SMEs don’t need to control everything to compete effectively. By focusing on what’s within reach – learning, leadership, motivation, culture and clarity – small businesses can build resilience that lasts.
Staff Skills academy+ is the official training provider to Federation of Small Businesses members. Our online training platform contains 700+ CPD-certified courses. Alongside compliance and mandatory training, you’ll find a wide range of professional development, wellbeing and fitness resources. There’s also single sign-on, comprehensive tracking, reporting and analytics. And we’ll even digitise all your paper-based onboarding and induction processes, so they’re more easily accessible too.
Everything has been designed to save busy L&D teams valuable time and energy, and all at an affordable price. If you’d like to find out more, we’d love to hear from you. Why not book an obligation-free demo with us today?
