Skills shortages and high salary demands hold back SMEs

SME employers can't find the right staff and face difficulty in finding appropriately trained, skilled and experienced people who are prepared to work for realistic and affordable salary packages, according to new research.

Nearly two thirds of the PKF employers survey's 830 respondents found it difficult to recruit compared with 47 per cent last year as candidates have higher salary expectations than many SMEs can afford. There is also a distinct lack of appropriately trained, skilled and experienced staff and this is, as in 2001, the most common reason for recruitment difficulties.

SMEs are also having to work harder to keep up with the combined onslaught of legislative changes to their employer responsibilities with over a third of them working more than 48 hours per week.

Commenting on the findings of 'Recruitment, remuneration and regulation - the 3Rs for employers' Sheena Sullivan, PKF partner, said, "Rather than demanding inflated salary packages, candidates would do better to target growing companies who can offer great prospects in terms of career growth, responsibility and opportunities to gain experience.

"SMEs are hamstrung by the universal skills shortage and poor attitudes of potential employees and we urge the Government to put in place an effective strategy to tackle the continuing skills shortage; find out why the tax break schemes aren't working; and stop bombarding business with new regulations."

PKK, the eighth largest firm of accountants and business advisors in the UK, surveyed its clients and contacts throughout the UK in February.