Small businesses lose talented employees says Hays research

According to the latest survey from recruitment experts Hays, small bsinesses seem to be missing out on the most talented employees due to job seekers concerns regarding pay and benefits. Their results indicate that 49% believe that salaries are less competitive in small businesses compared to large organisations, and 55% believe that there are less benefits on offer in smaller businesses.

Whilst 74% of people surveyed report that they have had a positive experience while working for a small business, 25% would prefer to be working for a large organisation. 52% also expressed their concerns regarding the stability of smaller businesses in the current economic crisis.

However, respondents felt that job satisfaction and interesting work can be found in any sized organisation. In addition, a number of positive factors about working for smaller businesses were also identified, such as the idea that they offer a more hands-on approach (88 per cent), greater responsibility (83 per cent) and a greater understanding of the business as a whole (83 per cent).

The chance to work more closely with senior staff (88 per cent) was also seen as a benefit of small businesses. Respondents also identified recognition from senior managers as another potential draw.
Charles Logan, director at Hays, commented: “In the current turbulent job market it’s no surprise that workers are looking for job security. But we also know that career development is very important to most professionals and this plays a key part in their decision to leave an organisation and accept a new role.

To attract the skilled and talented individuals that are needed to remain competitive, small businesses need to combat some of the stereotypes and ensure professionals are aware of the advantages they can offer workers looking to move their careers on.

“If they cannot compete with larger salaries or more expensive benefit schemes, they can often provide more interesting and varied work and the chance for people to work with senior people. It is these benefits that they need to sell to professionals.”

Logan continued: “Benefits need to be finely tuned to the needs of workers in smaller businesses. To counter worries about stability, smaller employers need to clearly communicate to potential recruits where their business is heading and the opportunities for future growth.”