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Stuart Gentle Publisher at Onrec

Skills dearth still hampers SMEs

As many look to flexi-working to improve staff recruitment and retention

According to new research* published today, nearly half (46%) of SMEs claim that the skills they need to succeed are unavailable in their local market. Compared to similar research conducted in 2004** this constitutes a 6% rise in the SME skills deficit. HR managers also revealed that the cost of recruitment (12%) and a saturated market (11%) hindered effective recruitment of new employees.

The research, which was commissioned by business communications provider Inter-Tel Europe, also highlighted that SMEs struggle to keep productivity rates elevated with 32% battling against absenteeism or lateness, for which 23% said their business incurred unexpected costs. Unmotivated staff (18%) and high staff turnover (19%) was also cited as prohibitive to productivity

Over 400* HR managers from SMEs were also questioned about their attitudes to flexi working, with 48% stating that adopting flexi-working would improve their attractiveness as an employer; 33% also recognised that it would improve staff productivity. Despite this, 90% of SMEs have fewer than 10% of their workforce working from home on a regular basis.

Chris Harris, managing director of Inter-Tel Europe, comments on the findings:

ìThe struggle to find and retain good people is a great concern for SMEs and this research hints that this could still be a growing problem. For many SMEs, growth will hinge on recruiting the best people available. But high-calibre candidates are becoming an increasingly rare commodity for SMEs as lucrative city packages tempt the prospective staff away. However, as employees start to demand a more solid work-life balance this could change the fortunes for SME employers. In fact it could be in their favour to encourage the change by offering flexible working.î

But as Chris points out, the research highlights that many SMEs find it difficult to define flexi-working. ìThe research indicated that many SMEs find going flexi a maze to navigate. 13% of HR directors said that flexi working was a policy that allowed staff to work from home, remotely or at a third party site. 27% thought flexi-working constitutes a job share arrangement. Just 15% said flexi working is purely about offering home working. The majority of HR managers, 41%, believed offering flexible hours such as earlier or later starts and finishes made for a flexi-policy.î

Chris continues: ìThe trick here is to understand that flexi will mean all of these things in line with what business models dictate and what individuals demand. Becoming a flexible employer will require devising a robust all-encompassing model, but it can be done relatively easily and effectively with the right know-how and technology.

ìTaking the leap of faith doesnít necessarily have to be something you do alone. Consulting with a specialist technology provider will allow you to leverage the potential of your existing technology infrastructure, without the need for heavy investment. Seeking advice from companies that have already adopted flexi working to learn from their successes and mistakes will also help determine how you manage the HR side of things. Taking a strategic approach to flexi-working could help many SMEs achieve their growth ambitions in a more effective way than they thought possible.î