Finding the Right Employees to Make your Business a Success
By Mark Holweger, director for Legal & General’s general insurance business
Taking on employees can be one of the toughest decisions that a small business makes. In addition to the obvious benefits that extra staff will bring to a business, hiring more employees can also have increased responsibilities for the business owner. So the decision is not one to take lightly.
Before making such a big decision, it’s vital that the business thinks through their requirements. Does the business need someone with a particular skill set to do something which cannot be managed at the moment, or would looking for someone who can take on some or all of another employee’s role be better, so the existing employee is free to focus on other things?
This is where it is often prudent to look at whether hiring part-time, temporary workers or contractors would be a better fit for the business. If the company is not yet in a position where it can make a full financial commitment to an employee, or is uncertain of long-term demand in the current economic environment, then it may make better sense to hire someone that offers the business a more flexible alternative to a permanent full-time member of staff.
Currently, this could be the best option as recent research has highlighted that not everybody is looking for a full-time permanent role. According to a recent ONS report, one in ten workers in the UK are looking to increase their weekly hours. Out of a total UK workforce of 32.19 million, this means there are over 3 million workers who are on the lookout for some extra work, but are not interested in a new full-time job.
This is also supported by Legal & General’s latest Job Security Index research, which showed that almost three fifths of workers (58%), are worried about how they will maintain their current standard of living if they were to those their current job. As a result almost three in ten (29%) UK workers are considering working extra hours to help improve their job security. There is an especially strong appetite among UK part-time workers to increase the hours they work, with 44% saying they plan to do so in 2013. So given the number of part-time workers currently looking for more work, this could be a great opportunity for small business owners to consider part-time support for their business.
With the economy still remaining quite fragile the latest Job Security Index has found that one quarter of working adults are not confident about their job security – an increase of 4% since October 2012. While businesses continue to work hard to maximise profit margins, unfortunately sometimes job losses do occur and it can help to be prepared. It’s worrying to see from our research that 67% of full-time workers and 73% of part-time workers currently don’t have any insurance in place that would help them pay their bills should they lose their job.3
It will be interesting to watch British workers’ job security develop over the course of 2013. With the latest unemployment figures falling by 37,000, we may begin to see workers confidence in their jobs increase, and this in turn translate into greater market confidence.
For more information see Legal & General’s Job Security Index.