Finding and keeping good people pose major headaches for HR professionals in small to medium-sized organisations

January 2008

Nottingham 19 December 2007 - Finding and keeping good people and managing change are causing major headaches among HR professionals within small to medium-sized organisations in the UK, according to an independent survey conducted by research firm Spectrum Consulting, on behalf of MidlandHR.

Based on responses from 101 organisations in the public and private sectors, the survey -- HR and Payroll Management within SMEs -- recruitment as a major problem was cited by nearly two-thirds (62%) in the 1000 plus employee range; 57% with fewer than 200 workers; and by one in two (50%) in the 201 to 1000 band.

An even bigger problem -- which was identified by the vast majority of respondents regardless of size -- was that of keeping good people, with three-quarters of the biggest organisations; 70% in the mid-range; and 60% of smaller employers expressing concerns.

Developing skills and abilities and dealing with change all play an important role in retention, so it should come as no surprise that tracking employee development is a particular headache for the larger organisation, highlighted by two-thirds (68%) of those with 1000 plus employees. This contrasts with findings of 35% for the 201 to 1000 band and 38% for smaller employers. Just as big an issue was managing change -- referenced by 70% of respondents at the top end; by 60% of mid-sized; and 50% of smaller organisations.

Commenting on the survey, Lawrence Knowles, Managing Director of MidlandHR said: "Finding good people is a challenge for HR professionals, whether in the private or public sector, which means it is vital to keep them once they are on board. There are a number of factors that influence retention rates. Salary and benefits are obvious but an attractive career path, opportunities to develop skills and encouraging employees to take on new roles in line with organisational change are also important.

"Of course, in order to help develop people and expand the skills base, employers must have an accurate assessment of where they are starting from -- perhaps through a skills gap analysis -- and then deliver appropriate training. It is then a case of monitoring the training programmes on enterprise, departmental and personal levels. Ideally, each person should have an individual training plan, which once agreed can then be fed into the HR management system and be tracked accordingly."

Copies of the report HR and Payroll Management within SMEs can be viewed at http://www.midlandhr.com/news/sme_research_dec_07.html

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