Enterprising staff 'hard to find'

Do new challenges help keep creative staff - not more pay?

More than three in four small UK firms struggle to recruit enterprising staff, a survey suggests.

The study, released in Enterprise Week by mobile and broadband firm Orange, also found that about 70% of firms battled to retain innovative people.

But only 12% felt better pay would keep staff loyal with the nature of the work offered seen as most important.

Competitiveness minister Stephen Timms told the BBC that many of the best ideas at company come from its staff.

It is crucial for companies of all sizes and sectors to encourage and retain staff with a flair for ideas Stephen Timms Competitiveness Minister

Some 77% of the 500 small companies quizzed said that hiring people "with initiative and bold ideas" was either a major or minor problem.

And almost half said that its most enterprising employees left for larger firms.

Offering new challenges as well as interesting work was seen as key to retaining the best staff, according to respondents.

'Acute challenge'

Orange said the findings showed it was important for firms to get employees to channel their entrepreneurial and creative skills back into the business.

Improving staff motivation and development would contribute to the company's growth, it added.

"Unlike large companies, many small businesses lack the financial resources to attract talented people with high salary offers," said Martin Lyne, director of small business at Orange Business Services.

"And with skills shortages a concern in many industries, the challenge of finding and retaining the right people is likely to become more acute."

Mr Timms told the BBC that entrepreneurship was about generating ideas and developing them - not just about setting up a new business.

"Many of the best ideas come from employees, giving employers the perfect opportunity to invest in staff and innovation at the same time," the minister said.

"It is crucial for companies of all sizes and sectors to encourage and retain staff with a flair for ideas."

'Banish fear'

Along with other companies including Tesco, Reed and BT, the phone giant has worked with the Make Your Mark campaign - which encourages enterprise among young people in the UK.

The group has made a free 'toolkit' for all businesses including tips advising companies on ways of attracting and retaining staff.

They include:

Establishing open, honest relationships

Building a solid recruitment and mentoring structure

Offering responsibilities that will create loyalty and motivation

Banishing the fear of failure and encouraging enterprise

"All kinds of employees have the potential to contribute a wealth of ideas, but they are not always given the opportunity," said Make Your Mark chief executive Harry Rich.

"Businesses that release this potential encourage creativity and risk-taking, leading to improved recruitment and retention, a happier workforce and greater commercial success."