SME's confident in hiring new staff

Small to medium-sized businesses are more optimistic in their recruitment intentions than larger rivals, but could be facing a skills shortage in the coming months – according to the latest Manpower Employment Outlook Survey.

The survey found that a balance of +21 per cent of small companies and +20 per cent of medium-sized companies intend to increase their staffing levels during the months April to June 2005. This compares to a figure of just +9 per cent of large businesses.

Mark Cahill, Manpower's MD said: “SMEs make up 99 per cent of British business, so it’s great news for the UK economy that hiring intentions are positive and SMEs are looking to expand their workforce.

“The challenge all businesses face currently is the lack of skills and experience required for some vacancies. This skills shortage tends to affect smaller businesses more than larger: SMEs are less likely to have internal training schemes, and are even more reliant on recruiting people with the right skills. The focus for SMEs is therefore on their recruitment and retention strategies – finding ways to attract the best talent in a tight labour market, and keeping them in their business.”

Stephen Alambritis, Head of Parliamentary Affairs at the Federation of Small Businesses, welcomed the results. He said: “The MEOS findings are further evidence that the very smallest firms create the most jobs. It is our belief that given their innovative and flexible approach, and a pool of suitably skilled staff, they will continue to be the UK’s job creating champions.”