A survey of SME firms conducted by law firm network QualitySolicitors found that a half of them were planning to create new jobs in the next six months. However, four in ten SME leaders said the extra costs associated with taking on extra staff were discouraging them from recruiting while almost a quarter (23%) cited red tape as a deterrent.

In the research, conducted in April this year, SME leaders were asked to identify the issues which were putting them off employing more staff.  Other factors discouraging job growth were the problems of finding the right person (28%) and the costs of training a new employee (22%).

John Baden Daintree of QualitySolicitors said:

“Optimism of the SMEs we surveyed is encouraging, but it is clear that growth is being held back by concerns over labour costs and the bureaucracy and hassle of finding, engaging and training new staff. An experienced employment lawyer can help steer business owners through the legal maze. The costs – both financial and social - of leaving people in the dole queue are enormous, so at QualitySolicitors we will do everything we can to help, with a miniguide to employing new staff, free initial telephone advice and straightforward affordable support. The challenge for policymakers and Government is to do everything possible to reduce the burdens and risks to help our most successful businesses to expand. 

For more information on recruiting staff, see our top tips.

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Notes to Editors

  • For more information please contact Melissa Davis at MD Communications on 020 7438 1575 or email info@mdcomms.co.uk.
  • Researchers commissioned by QualitySolicitors interviewed 250 SME leaders during April 2014.
  • Launched in 2010, QualitySolicitors is a group of law firms across the country working as part of the QualitySolicitors brand. Only one firm per local area is selected to become a QualitySolicitors partner.  Customer feedback forms an integral part of the selection process.
  • In 2011 QualitySolicitors secured equity investment from Palamon Capital Partners, a private equity house with a £700m fund. In 2014 Palamon made further investments into the firm.