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The killer factor holding UK small businesses back

23rd May 18 2:25 pm

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The vast majority of Britain’s small business owners feel it is harder for them to hire staff than it is for bigger companies – according to new research conducted by the world’s largest job site, Indeed.

More than 80 per cent of bosses at micro businesses – those with fewer than ten employees – believe recruitment is more difficult for them than it is for their larger, more established rivals.

The findings, which come as official figures show the UK’s employment rate is at its highest level since records began 46 years ago, suggest many small businesses are fighting a battle for talent.

Even successful, fast-growing small firms can find recruitment tough. A third of small business bosses (34 per cent) say they struggle to find suitable candidates for roles, with nearly half (42 per cent) feeling frustrated if it takes them longer than a month to fill a vacancy.

Three in five (59 per cent) decision makers at small businesses cite a perceived lack of job security as the principal reason they struggle to attract applicants, while half (49 per cent) think it is due to their lack of name recognition when pitted against bigger, better-known brands.

Other reasons for hiring difficulties include candidates’ perception that small firms offer fewer opportunities for career progression than larger ones (43 per cent), an inability to offer the same perks as larger companies (42 per cent), assumptions that salaries will be lower (26 per cent) and a relative lack of prestige (18 per cent).

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