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BizHelp24 Edition No. 190
Thursday 21st June
2007

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June 2007 - Small Business News

 

Struggling to Hold onto Staff? - Improve Your Training and Recruitment

If your business struggles to hold onto talented staff, then you are certainly not in the minority. A survey by the Chartered Institute of Personnel and Development (CIPD) has found that almost 80% of companies struggled to hang on to their staff in 2006.

Nicola Monson, author of the report, says: “Employers will continue to struggle to find suitable candidates and keep staff turnover under control if their approach to recruitment and retention fails to take account of both business and employee needs.

”Only half of employers currently have a formal resourcing strategy, which suggests many are not planning for the future skills requirements of their organisation. This is particularly worrying given that specialist skills and required experience is still in such short supply.

”All organisations rely on talent so employers need to take a proactive approach to talent management and tap into the skills of the people wanting to contribute and progress.  Actively developing employees should not only increase the internal talent pool, in turn reducing their reliance on external candidates, but also see problems retaining staff ease due to new career opportunities.”

The following initiatives are also very effective in helping organisations to overcome recruitment difficulties:

  • Using the employer brand as a recruitment tool (75% say it has a positive impact but only 31% currently use)
     
  • Offering flexible working (74% say it has a positive impact but only 30% currently use)
     
  • Targeting migrant workers from EU countries and recruiting staff from abroad (75% say it has a positive impact but only 14% currently use)

Recruitment difficulties

  • Key reasons for recruitment difficulties are lack of necessary specialist skills (65%), followed by higher pay expectations (46%) and insufficient experience (37%).
     
  • Only the public sector has seen a drop in recruitment difficulties which reflects the pressure on the public sector to make efficiency savings (80% of public sector organisations say they experienced recruitment difficulties, compared to 89% in the 2006 survey).

Migrant Workers

  • Organisations are continuing to look beyond the UK to fill vacancies. 14% are targeting migrant workers from EU accession states. This was seen to have a positive impact on recruitment difficulties by 75% of organisations, compared to just 48% in the 2006 survey.
     
  • A further one in ten (11%) are recruiting in foreign countries and bringing workers over to the UK.

Working with recruitment agencies

  • 73% of organisations still engage recruitment agency services to help fill job vacancies.
     
  • Most respondents agree or strongly agree that using agencies considerably increases the cost of their recruitment spend (76%).
     
  • Nearly six in ten fail to evaluate agency performance (59%).
     
  • A third of employers don’t possess a preferred supplier list.
     
  • 81% of those employers using recruitment agencies do so for hiring temporary workers and 78% for seeking permanent staff.
     
  • The key driver for organisations’ move away and decline of agency usage is to cut down on recruitment costs (72%). Adopting a direct-hire strategy is also identified as another motive for not using or reducing the use of agency services (53%).

More information on employment issues is available in our You and Work portal.

 

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Archive: Apr to Jun 2007

 

 

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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