UK employers are not making the most of the potential of Web 2.0 in terms of the benefits it can have for recruitment and retention.

This is the assertion of the Chartered Institute of Personnel and Development (CIPD), which found that 80 per cent of organisations do not currently use the technology to such ends.

Despite this, 56 per cent of businesses that the CIPD questioned reported a belief that social networking sites are useful for engaging potential job candidates.

Commenting on the findings, Deborah Fernon, organisation and resourcing adviser at the CIPD, said: "Through the richness of multimedia and connectivity, web 2.0 technology provides an opportunity to bring the employer brand to life."

She added that it creates online experiences that enable potential employees to find out what it is like to work for a company.

In other recruitment news, figures published recently by the CIPD revealed that 86 per cent of organisations are currently struggling to fill staff vacancies.