SMEs should 'nurture' employees

Small to medium enterprises (SMEs) would be better served by nurturing existing talent, a new report has claimed.

An investigation by the Cranfield School of Management, commissioned by Learndirect Business, revealed SMEs could save substantial funds by not 'buying' employees, but by training existing staff members.

Statistics from the publication showed that 45% of successful businesses utilised formal training policies, while 46% of those with falling revenues recruited on an ad hoc basis.

Sarah Jones, the chief executive of Learndirect, commented: "By focusing resources on nurturing existing talent, organisations can ensure they reap the biggest rewards."

"The benefits include excellent staff retention, increased employee motivation and less resources spent on recruitment."

Further findings from the study - which used responses from more than 1,100 human resources figures - showed that 78% of employers felt that skills development was more advantageous than recruiting staff externally.

Last week, the foreign exchange group World First revealed that the SME sector lost £900 million on the currency market every year.