Small businesses struggle with HR duties

Smaller businesses are struggling to cope with the ever-increasing challenges of managing employees, according to a survey released today by the Institute of Directors and Adecco.

The ‘Small Business Recruitment and Retention Survey’ found that 64 per cent of businesses were reticent to give up HR control. Despite this, 88 per cent admitted that finding the right staff was a challenge and keeping up with legislative changes in the workplace was often difficult.

The ‘Small Business Recruitment and Retention’ survey, conducted in April 2005, examined the pressures, and problems faced by smaller businesses when undertaking their own HR procedures. The survey found that 55 per cent of MDs were acting as makeshift HR directors and struggling to manage the HR burden of those employed by small businesses in the UK. The key findings were:

• HR from the top – In 55 per cent of businesses, MDs are managing the HR process directly, spending up to one day per week resolving HR issues

• Managing the legal burden – 90 per cent of businesses had to reform their HR policy due to legislative change in the past 12 months – 64 per cent in the last six months. 73 per cent believe existing legislation unfairly favours the employee

• Finders, keepers – 67 per cent cite ‘keeping staff happy’ as their number one HR priority with 53 per cent finding this the hardest part of the job. Diminishing employee loyalty is considered a major problem by 60 per cent of respondents

• Provision paranoia – 64 per cent of smaller businesses prefer to keep HR and recruitment in-house, but 88 per cent see recruitment as a major challenge