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BizHelp24 Edition No. 138
Wednesday 13th July
2005

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July 2005 - Small Business News

 



Are You Struggling With Employee Recruitment and Management?
 

Is your business struggling to cope with the weight of legislation and the challenges of managing your employees? A new survey has shown that in 55% of SME’s, the managing director personally deals with all human resource (HR) issues; taking up to one day a week. 

The survey for the Institute of Directors (IoD) and Adecco found that 64% of businesses were reluctant to give up control of HR issues, but 88% were finding it difficult to find the right staff and keep up with legislative changes in the workplace. Not only that, but 90% of businesses surveyed had to reform their HR or employment policies in the last 12 months to keep up with legislation changes.

Richard Wilson of the IoD, said: “HR issues take a significant portion of directors’ time but it’s typically done on a reactive basis. Small businesses also struggle to keep up with the increasing amount of legislative red tape which, if not properly administered, can end up costing businesses a lot of money.” These problems in recruiting are not made any easier by 41% of SME’s not having any formal recruitment policy in place.

“It’s little wonder that managing HR is a continual pressure on SME management given that 46 per cent of company turnover goes on wages,” said Richard Macmillan, Managing Director of Adecco UK and Ireland. “Finding and keeping the right staff in line with legislation is a massive task for all modern day businesses, but for small businesses it tends to fall to the MD to do ‘on the side’"

“There is a danger of ‘procedure burn-out’ for small companies. Access to the right advice from HR specialists should not be the preserve of multinationals, as it is often the smaller companies who have most to lose from the range of HR issues, from having the right recruitment process to being sued for unfair dismissal”

There is discontent among the small business community regarding employment legislation. 79 per cent of companies think there should be a fair balance between employee and employer rights and 73 per cent believe the law unfairly treats employers. However, despite strong opinions, only 6 per cent see ‘implementing new employment policies’ as a priority for their HR and are reacting to this situation.

If your business is struggling, then why not see whether you could benefit from external HR services, hiring an HR specialist, or even from better HR training.For more free information and advice on employment, management and HR issues for small businesses, visit our Personal Development portal here.


 

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BizHelp24 – UK business and finance information, news, help and services for small businesses BizHelp24 is a UK business and finance resource providing Small Business Help, Start up Information, news and services; for individuals and Sole Traders. Comprehensively covering a wide range of key business, finance, and service topics. Employment and personal information includes Work Times and Break Entitlement, Body Language, employee Holiday Entitlement and Employment Contracts. Credit Policy information includes Letter of Credit, useful Credit Notes, Business Loans. and Cash Flow Control. Other information areas include Bankruptcy, Homeworking, Business Failure, Company House and Company Names,

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