SMEs struggling with employment law » SMEInsider

SMEs struggling with employment law

Small businesses are struggling to stay up to date with employment law and are running the risk of poor hiring decisions and a lack a compliance. The research involved surveying 500 SME owners and found that smaller firms are most at risk due to a lack of dedicated HR expertise or resource.

The research is especially worrying given the recent news that the number of SMEs being penalised for non-compliance with the new auto-enrolment rules has shot up by 300%. The survey revealed that only 37 per cent of SME owners can demonstrate a clear understanding of employee rights and their responsibilities as employers. Indeed, 12 per cent feel they have limited to no understanding of present employment regulations, never mind future rules.


‘Hiring the right talent critical for growth’

James Peck, UK managing director of Jobandtalent says that small business owners need to hire great talent to grow, but this research shows that a number of UK small businesses are still taking enormous risks when hiring and managing their staff..

‘Noone starts a business because they like doing paperwork, but complying with regulations on auto-enrolment and the apprenticeship levy, for example, requires an almost constant stream of admin around hiring, payroll and benefits.

‘That’s very time consuming and keeps business owners away from their core tasks. Cutting time to hire and reducing risk are both critical success factors for small and growing businesses, so the ability to hire quality talent quickly with less administration provides businesses with the best possible opportunity to grow.’