Red tape ‘deterring SMEs from hiring’

An expert has claimed that a growing number of small and medium-sized enterprises (SMEs) are being put off from hiring more workers because of the regulatory burden and could turn to alternative measures.

Rebecca Burn-Callander, deputy editor of business support website Smarta.com, expressed concern over the current legislative implications of employing new staff and said smaller firms have a variety of other options available to them.

“No business owner launches a company to create jobs,” she explained. “Staff are the result of growth, not the cause. Excess red tape makes hiring staff a huge headache for business owners.”

Ms Burn-Callander added that SMEs may opt to outsource some functions to independent contractors in an effort to reduce their HR responsibilities, as well as sharing services with other companies to help cut overheads.

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Bosses looking for tips on increasing efficiency by streamlining processes should consider attending the forthcoming Leveraging HR Technology Forum, which will take place at London’s Canary Wharf on January 18th 2011.

Posted by Hayley Edwards