Small and medium-sized enterprises (SMEs) in Britain are struggling to compete for talent, with the cost of recruitment soaring, a new study suggests. According to research from talent platform Employment Hero, 89% of SMEs are struggling to match salaries offered by bigger organisations in the UK. The study of 514 small businesses found that multinationals present a threat to 69% of firms. The average cost of hiring has risen by 68% to £3,089 over the last year. SMEs, particularly those employing less than 10 workers, are also facing the highest advertising costs and turnover rates. Ben Thompson, CEO and co-founder of Employment Hero, said, “Recruitment isn’t working for SMEs. They are the backbone of our economy but can’t keep up with a hiring environment of increasing complexity and cost, where huge multinational companies can easily outspend them in the race for top talent.”
Our HR comment: – Small businesses struggle to compete for talent | Consensus HR – Herts, Beds
Matthew P Chilcott, FCIPC, ACEL, Owner of Consensus HR comments: “This is a very interesting and worrying article for SME’s which is the core of Consensus HR’s business and is why we like to work with businesses to find the best recruitment & HR strategy for them. We have recruited for a range of roles in the past and have agreed, when necessary, some great rates with local recruitment providers. Businesses, however, need to realise that it is not just the recruitment that costs but ensuring that when you have recruited that they develop the new employee into the business and help them to grow into the organisation and its culture. This is why we offer all our client a three-month probationary workbook for new employees that I wrote many years ago which puts the emphasis on the new employee and business / manager to spend time with the new employee with emphasis on the recruit to play an active part.”
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