New research is indicating that financial advice for small businesses may need to include a review of headcount.
A study, conducted by the Recruitment and Employment Confederation (REC) found that 61 per cent of respondents are planning to add to the number of permanent staff in their organisations in the next three months. Firms are also likely to use more agency workers, as companies continue to operate in a challenging financial environment.
Firms are also likely to use more agency workers, as companies continue to operate in a challenging financial environment.
The study, conducted by the Recruitment and Employment Confederation (REC), found that 61 per cent of respondents are planning to add to the number of permanent staff in the next three months, with almost two-thirds doing so between four and 12 months down the line.
Just over one third (38 per cent) of businesses said they would increase the number of agency workers on their books in the next three months, falling slightly to 36 per cent for plans over the next four to 12 months.
Commenting on the results, REC director of policy Tom Hadley said: "Our latest data shows the majority of employers are planning to increase or maintain their permanent headcount over the next quarter which suggests that the jobs market will continue to outperform the rest of the economy in the short term."
However, he added: "Currently it is small businesses that are the most cautious about hiring and we hope that announcements made by the Chancellor in [March's] Budget to make it cheaper and easier to hire people will help to boost business confidence in the future."
The research interviewed 600 employers about their plans to hire in the coming year and covers businesses across public, private and non-profit sectors.
Small businesses have recently been encouraged to consider using apprentices to develop and support talent in their organisations.
Recent legislative changes have made it easier for companies to hire apprentices, as the government looks to tackle rising problems of youth unemployment.