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FIRST the good news. Despite the carnage in the stock markets, a manufacturing slump and the threat of war against Iraq, many small businesses are still looking to expand.

According to the latest survey conducted by Reed, the recruitment consultants, a third of smaller firms are recruiting in order to expand their businesses, while almost half are hiring to maintain staff levels. A mere 11 per cent of smaller businesses are downsizing, says Reed.

Reed's figures are backed by evidence from Rupert Ellis, director of www.Jobjobbed.com, a recruitment company that specialises in servicing smaller firms. Jobjobbed was launched in June this year and has done brisk business ever since. "You keep hearing stories of doom and gloom, but this does not match our findings at all," Mr Ellis says. Although some sectors, notably IT and telecoms, are suffering, in other areas, such as engineering, demand for staff is high. Most jobs offered are permanent positions, Mr Ellis says, adding that there is a good regional spread of opportunities.

The bad news is that most smaller businesses are struggling to find the right applicants to fill vacancies. According to a study by the Kingston University Small Business Research Centre, almost a quarter of owner managers say recruitment problems are their main business restraint, more troublesome than red tape, cashflow or competition. The researchers say many entrepreneurs try to recruit in their own mould and focus on finding staff members who will fit in with an existing team. This can stifle creativity. Frances Wilson, of the Chartered Institute of Personnel and Development, says small companies simply cannot compete with the packages on offer from larger firms. "Small businesses cannot afford to offer the perks, the pension plans and the career opportunities." she says. However, small firms can offer flexibility. "They can also give (staff) greater responsibility. For example, many of the most innovative software companies are smaller firms. They can offer staff high levels of responsibility and creativity." Creative hiring practices can also help. Ms Wilson points out that big firms have been slow to hire more disabled staff; former offenders are also overlooked. "Many young men have criminal records for minor offences. That does not make them unemployable, but they are treated as such by big companies," she says.

Looking for employees is an expensive business. Few SMEs can afford to place advertisements in national newspapers, fewer still have budgets to hire headhunters. For small firms wanting to hire staff the routine is to place advertisements in the local press. But few entrepreneurs have specialist recruitment skills, says Mr Ellis, of www.Jobjobbed.com "Many of our clients are very successful businessmen, but they have no experience when it comes to writing accurate job descriptions," he says.

Without advice, many small businesses will waste time and money on interviewing unsuitable candidates. "If you are not skilled at recruitment, you have no idea what you are going to get," Mr Ellis says.

Case study

MARK DAVIS, managing director of Chauffeurwise, a Stroud-based chauffeuring company, has been in the business for 20 years. A graduate of the Rolls-Royce Bentley School of Instruction and the Institute of Advanced Motorists, Mr Davis is meticulous about choosing staff in a business in which safety is paramount.
But putting together the right team of employees has proved more difficult than assembling his fleet of sleek, silver Mercedes-Benz. Like the vast majority of small businesses, Mr Davis has traditionally relied on advertisements in the local press when hiring employees. However, he has found that the applicants were not always well suited to the task at hand. And while local papers are certainly cheaper than the national press, Mr Davis argues that they are not the best value for money. "The advertising is not particularly targeted," he says. Processing dozens of applications for one or two positions is a costly waste of time. Another problem that Mr Davis faced was the lack of sources of advice on recruitment. "When it comes to management advice, I have always turned to my accountant or business banking manager. But there has usually been a void when it comes to recruitment," he says.

For Chauffeurwise, the internet has been a godsend. Recruitment websites not only offer small businesses a cheaper way to advertise, but many also offer advice on formulating job descriptions. "The notes section on the www.Jobjobbed.com site was very useful in preparing the job specifications and the advert," Mr Davis says.
A convert to recruiting over the internet, Mr Davis believes that targeted advertising over the web reduces the time spent on finding new staff. "We received 16 replies from our advert, five of whom were interviewed and two were subsequently employed. With the money I saved on the recruitment costs, I paid to put a company profile on to the site and have received 1,200 hits on my website, www.Chauffeurwise.com , as a result."

Ends.

For further information on www.jobjobbed.com and its range of services for Business Users, contact jobs@jobjobbed.com or call 01453 887508 for details.

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