How small businesses can hire the right people is a critical part of success. With the economy on the upturn, things are looking brighter for small companies in the UK. More are planning to hire than at any time in the last seven years.

The CIPD’s Labour Market Outlook out this week reveals the proportion of smaller employers who expect to hire in the second quarter of 2014 compared to those who expect to cut headcount is +52. Things are less positive for large employers – there the score is a lower +11.

Average these two figures out and the total balance of +26 is the highest since autumn 2007. That points to a hiring spree and an escalating battle for small businesses to access the right talent.

The issue is biggest in information and communication businesses, with 56% of companies struggling to hire the right people. The shortage of good software developers in the UK is likely to be one of the factors driving this.

citrusHR recognized the importance of hiring good staff when we designed our system. Tools like the contract generator were developed specifically to help small business owners get the right offer to the right candidate in good time, so the chances of winning the battle for talent were improved.

The CIPD survey found small companies were less likely to use temporary employment contracts. 51% had no temporary workers, compared to 31% of all businesses surveyed.

Key to winning the battle for talent is clearly keeping the staff you have, as well as attracting the best new recruits. We’ve already noticed at citrusHR how important managing HR administration is when it comes to retaining good staff. Approving holiday requests promptly sounds straightforward enough, but when it’s not done, staff start to wonder whether they’re valued.

 

 

Share on FacebookTweet about this on TwitterShare on LinkedIn