Research from recruitment firm Towers Watson and American consultant WorldatWork found that just under half of companies quizzed had struggled to retain skilled staff, with 25 per cent experiencing problems in finding staff.
"The business climate has clearly affected companies' ability to attract and re-motivate top-performing employees," said Towers Watson senior consultant Carole Hathaway. "Key people simply are in no rush to seek employment elsewhere."
She added that some employers have overlooked the importance of job security, pension schemes and flexible working provisions in improving staff loyalty and encouraging workers to remain with particular companies.
Earlier this week, a study carried out by Eversheds discovered that many public sector organisations are planning to cut back on recruitment and benefit arrangements in anticipation of reductions in government spending.
Posted by Hayley Edwards
