Staffing issues of major concern to West Midland SMEs

STAFFING issues remain a major concern for SMEs in the West Midlands, a new study has shown.

The research, conducted by Lloyds Bank Commercial Banking for its Backing Your Ambition event programme, found two-thirds (66%) of West Midland SMEs said the biggest decision they had had to make for their business related to people, from recruitment and retention through to performance management. A further 76% said they were worried about losing good members of staff.

Lloyds said the sentiment echoed one of the key findings of a report by GrowthAccelerator into the characteristics of businesses deemed to be ‘Hyper Growth’ operations – the term used to describe firms growing at a rate of at least three times higher than the accepted definition of ‘high growth’.

Of firms attending a BYA event at the National Motorcycle Museum in Solihull, 70% said the recession had forced them to re-evaluate their approach in order to survive. Like the Hyper Growth businesses in the report, it was revealed that West Midlands firms also regularly consult their business objectives, with almost two thirds (62%) saying they revisit their plan at least once a quarter.

It was also revealed that less than a quarter (24%) of West Midlands firms’ growth opportunities have come from new markets, which contrasts with the findings of the report.

A total of 140 business leaders from across the area attended the event, which brought together senior bank representatives including Mark Cadwallader, Area Director SME Banking in the Midlands and Gary Saxon, Senior Manager SME Banking in Coventry and Solihull, both from Lloyds Bank Commercial Banking.

Part of a series taking place in 12 locations across the UK, the event included an address from Trevor Williams, Chief Economist, Commercial Banking, Lloyds Banking Group, who provided an economic update on the macro and micro issues affecting SMEs across the region.

Mark Cadwallader said: “Whilst many surveyed said they had been forced to look at their business activity, it’s clear from speaking with those in the room this morning that this hasn’t dampened any entrepreneurial spirit.

“There is a strong sense of business community in the West Midlands, and with 41% of SME owners saying they would prefer to speak with an external business adviser to realise their business ambitions, there is no shortage of peers in the area to turn to for support.

“These events provide us with an invaluable forum to engage with our customers and to get a real understanding of their plans for the future – and to see how we can help these businesses to realise their ambitions.”