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UK employment to change as SMEs outsource?

UK employment to change as SMEs outsource?

Employment in the UK could change as small and medium-sized enterprises (SMEs) are reconsidering the way they use personnel, it has been claimed.

Rebecca Burn-Callander, deputy editor of enterprise support platform, observed: "Excess red tape makes hiring staff a huge headache for business owners," saying they will look for other solutions for fulfilling their manpower requirements.

Jobs and employment might therefore be found with outsourcing specialists and independent contractors, as these are the services Ms Burn-Callander suggests will be in demand among SMEs.

She notes collaboration may also be exploited, with firms exchanging services "rather than paying an employee to undertake the function".

Yesterday (January 4th), comments from Federation of Small Businesses' national chairman, John Walker, focused on the jobs market, noting over the past ten years, small companies have been responsible for more than 80 per cent of posts in the private sector and warning steps should be taken to ensure they can continue their supportive role.  

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