Odds ‘stacked against’ small businesses looking to recruit

23-May-2018 - Last updated on 23-May-2018 at 10:58 GMT

Stacked odds: Smaller businesses in the hospitality industry and beyond find it harder to recruit than larger competitors.

The vast majority of Britain’s small hospitality business owners feel it is harder for them to hire staff than it is for bigger companies, according to research conducted by global job site Indeed.

Indeed surveyed 1,006 business decision makers in companies from a broad range of different industries with fewer than 10 employees of whom 81% agreed that they face a sterner challenge when it comes to recruiting than larger employers.

Of those in the hospitality industry who responded, 81.4% agreed that it is harder for the sector’s small businesses to recruit staff.

The results come after UKHospitality warned the Government that 'exorbitant and destructive' costs risk undoing the good work of job creation by the hospitality sector since 2008.

The survey also revealed that a third of small business bosses (34%) struggle to find suitable candidates, with nearly half (42%) frustrated if it takes them longer than a month to fill a vacancy.

Moreover, three in five (59%) decision makers at small businesses highlight a perceived lack of job security as the main reason behind recruitment struggles, while 49% think it is due to their lack of name recognition when pitted against bigger, better-known employers.

Other reasons include candidates’ perception that small firms offer limited career progression (43%), an inability to compete with larger company perks (42%), a lower salary (26%) and a relative lack of prestige (18%).

Help to level the playing field

Bill Richards, UK managing director at Indeed, commented: “With unemployment at a record low and employment at a record high, recruitment in the current environment is a challenge for employers of all sizes.

“Our research suggests many small businesses feel the odds are stacked against them in the battle for talent.

“While larger firms will always have a head start in terms of brand recognition, popular misconceptions that smaller companies offer less job security or fewer prospects for career progression are also taking their toll.

“By shining a light on these issues, we hope to help smaller companies level the playing field. It’s crucial that smaller employers address candidate concerns right through the hiring process, from the wording of the job ad to how they tell their company story or approach interviews.

“It’s crucial to spotlight the benefits that working in a smaller company can offer employees, such as being part of a close-knit team and having a greater sense of autonomy on projects.”

Interested in working in the pub industry? Then take a look at MA’s jobs site.