Small business owners who despair that they will not be able to compete with their larger counterparts in the jobs market have been reassured that there are ways in which firms can differentiate themselves and appear more attractive to prospective employees.
According to the Chartered Institute of Personnel Development (CIPD), 76 per cent of manufacturing and production organisations experience retention difficulties.
Meanwhile, 75 per cent of voluntary, community and not-for-profit organisations, 83 per cent of private sector services companies and 72 per cent of public service firms have the same problem.
However, Matthew Knowles, spokesperson for the Federation of Small Businesses (FSB), believes that small firms are often better placed to be able to offer their staff members better working conditions.
He concedes that while they may not be able to compete in terms of pay, they are often able to boast a more stimulating working environment, greater flexibility and a more intimate and friendly atmosphere.
"The work environment and the approach to staff is usually more friendly within a small business because there isn't an HR department around," explained Mr Knowles.
"It's the owner/manager that deals with the hiring and firing and the day to day management. And because that person has invested in the success of the company, they have much more of a personal interest in making sure that the people that work for them are happy and content.
"That's where the small businesses tend to trump the larger ones - the working environment, the flexibility they can offer their staff and the general brighter outlook of the workplace."
However, Mr Knowles also suggested that while it is true that not all small and medium enterprises (SMEs) pay their employees less than larger companies, it can also be said that a number of SMEs underestimate the amount their staff deserve at the end of each week.
As a result, there is often a poor response to new job advertisements.
"It's not something that's easily calculated - to work out what the market rate would be," Mr Knowles said.
"Some organisations pay consultancies quite a large amount of money to work that out. So, small firms won't be accessing that expertise but they will have to be sensitive to the local jobs market to make sure they can get the right person."
He therefore has some
advice for small businesses: should the right candidate not be found it is always best to advertise again to ensure a more suitable employee is sourced rather than hiring an unsuitable alternative.
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