Small businesses cut back on recruitment to stay afloat

Date: 26th June 2009

Small businesses in the UK are cutting back on recruitment in order to balance the books, according to Monster.co.uk.

The recruitment agency found that three quarters of small to medium sized businesses had begun recruiting at lower levels.

The survey found that 15 per cent had put a total freeze on hiring, while 28 per cent admitted their recruitment policy had significantly changed but that they were still hiring at a slower rate.

A further 34 per cent said they were still recruiting, but on a limited budget and nineteen per cent suggested their recruitment policies remained unchanged.

Julian Acquari, managing director of Monster UK and Ireland, said that recruitment issues within smaller companies can have a much more significant impact than on larger firms.

He said: "With smaller enterprises the loss of one member of staff can have a dramatic impact on the remaining employees."