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Red Tape Is Holding Back SME Job Growth

31 Jul 2014
Red Tape Is Holding Back SME Job Growth

Research from legal group QualitySolicitors has shown that recent employment figures are skewed by employers’ lack of confidence in the job market.

Employment solicitor, Sarah Telford, from Cwmbran-based QualitySolicitors Rubin Lewis O’Brien said that the economic recovery is being held back by these concerns: ‘‘Whilst the continued job growth that was confirmed on 15th July is encouraging, it fails to recognise that red tape and rising employment costs are taking their toll on employers investing more in new staff and increased jobs.’’

A survey of SME’s conducted by the QualitySolicitors law firm network found that a half of them were planning to create new jobs in the next six months. However, in Wales 27% of SME employers said that red tape associated with taking staff on was deterring them from recruiting.

‘‘Our research demonstrates that the associated costs of taking on new staff, wages aside, are varied.’’ said Miss Telford. ‘‘Some industries are experiencing a long awaited surge in business, but it is clear that growth is being restricted by concerns over the rising costs and the dearth of exceptional talent and motivation.’’

The recent research asked employers of SME’s to identify the barriers to growth when it comes to employment. Other factors discouraging job growth were the problems of finding the right person and the costs of training a new employee.

Miss Telford continued: ‘‘Our experience in employment law tells us that employers are facing a maze of legislation and information overload. There is a clear issue with poor communication and what is exactly required from a HR perspective. We work with clients and advise them on the risks and responsibilities of taking on staff, and what to do in certain situations. The challenge open to the Welsh Government is to do everything within their powers to eliminate the barriers to growth. Administrative burdens must be reduced whilst employment rights are upheld; it’s a difficult balancing act – but one that can be achieved with the right communication, education and level of engagement from all parties.’’

For more information regarding Quality Solicitors Rubin Lewis O’Brien, please call: 01633 867 000 or e-mail:

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