SMEs lack faith in job market
Aug 17 2011
Many SMEs find it difficult to recruit the right people
Small business growth is being hampered by a struggle to find the right staff for the job, finds research from the British Chamber of Commerce (BCC).
According to a survey of some 2,000 micro businesses (companies with under ten staff), more than half (55 per cent) are looking to increase the number of staff they employ, but 50 per cent find it difficult to recruit the right people.
When asked how confident they would be that a school-leaver with A-levels or the equivalent would have the necessary skills for their business, almost half (47 per cent) say they would be fairly or very nervous, with only 22 per cent saying they would be very or fairly confident.
Only 36 per cent of respondents are very or fairly confident that university leavers would have the right skills for the job.
Dr Adam Marshall, BCC director of policy says that, despite high levels of unemployment, many micro firms are frustrated by the quality of applicants for vacant roles. ‘There is a real mismatch between business needs and local skills supply, with many businesses unable to find school leavers or even graduates with the right mix of skills,’ he says.
‘At a time when we need to fight hard for every new private sector job, Britain needs a skills system that delivers what businesses require. A courageous government must recognise this and put more control in the hands of employers when it comes to training the nation.’
Marshall adds that burdensome employment legislation deters many businesses from taking on staff in the first place.
Less than half of respondents (40 per cent) feel well informed about changes to employment legislation, with 39 per cent of micro businesses stating that rules around dismissal were extremely or fairly burdensome.
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