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A GUIDE FOR SMALL BUSINESS OWNERS
A recent survey has revealed that recruitment is the most unexpected challenge for small business owners . To support SMEs looking to recruit , small business accounting firm , The Accountancy Partnership , has compiled a 10-point guide to hiring .
IRING NEW TALENT is the most unexpected challenge faced by entrepreneurs when running a small business , according to new research .
Against the backdrop of The Great Resignation and an increasingly competitive market for employers , recruitment issues were listed by almost one in six ( 13 %) small business owners as their greatest challenge .
With the potential to stifle growth if resource gaps are left unfilled , 60 % more business owners found recruitment a challenge versus those who expected it , equating to as many as 737,000 SMEs that have found staffing stressful . The Expectation vs Reality report by The Accountancy Partnership sought to reveal the disparities between what entrepreneurs anticipated and experienced when running their businesses , with finding reliable suppliers , and honing their leadership skills also listed as top challenges .
On average it takes 42 days to fill a vacant position , however , this can be longer in some industries that have longer notice periods . The process of employing staff and meeting the various legal and HR requirements of doing so can also be time-consuming for entrepreneurs .
“ As start-ups grow , employing good people to support the extra work and aid further expansion is critical ,” said Lee Murphy , Managing Director of The Accountancy Partnership . “ Without being able to hire well , there is the risk of the business stagnating or the founder becoming overloaded as they can ’ t manage the workload on their own .
“ By making the basic steps to hiring employees more readily available to small business owners , the headache of compliance can be minimised . Owners should also view recruitment and the costs that can be associated with it as an investment to support the future of their enterprise .”
The Accountancy Partnership ’ s research also revealed that managing staff once employed was an unexpected challenge , with more than a fifth ( 21 %) of entrepreneurs experiencing it as a challenge than those who thought they would .
Following the results of the Expectations vs Reality report , The Accountancy Partnership wants to make those setting up their own business more aware of the realities before they start and have compiled a guide on how to make first hires .
Consider the financials of employment
Hiring staff is a business investment – it can be expensive but will also create a return for the business . There are two strands to consider here : wages and ‘ the cost of employment ’.
When setting staff ’ s salary , it should reflect the value the individual brings to the company , not just the importance of the role in the business . Founders should research pay levels for similar roles in their sector and
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