The majority (67%) of SME business leaders find it difficult to hire qualified members of staff or retain existing talent, research by Aldermore reveals.
A survey of 1,008 decision-makers found that 26% were concerned with keeping good members of staff, while 20% reported problems with high turnover.
Employee retention has become a greater concern over the past year for some business owners, as 29% reported an increase in staff leaving their business compared to 12 months ago.
The research suggests that most business leaders are taking steps to tackle this, as 76% SMEs recognise they need to make an effort to avoid employee churn and keep their best staff.
The most commonly used methods for retaining talent included:
- providing a healthy work/life balance (28%)
- flexible working opportunities (26%)
- relevant training (23%).
Carl D'Ammassa, managing director of business finance at Aldermore, said:
"Competition for the best industry talent has always been fierce and business leaders need to put measures in place to ensure their companies are attractive places to work for ambitious employees.
"The best people can have a significant, positive impact on how that business performs, and the majority of SMEs acknowledge it's important to make an effort to keep talented people."
Talk to us about your business' finances.