Think Small !

"Think Small First", this is the title of a new report by The Confederation of British Industry (CBI).  The report outlines its proposals on employment law to boost small and medium-sized enterprises (SMEs) and is looking to the Government to tackle regulation that prevents these businesses from creating jobs and growing.

The proposals include speeding up the tribunals system, providing clear guidance in the absence of a default retirement age, introducing the right to an annual review of flexible working so that companies can manage competing requests fairly and agreeing a return date with employees going on maternity leave so that firms can plan more easily.

The CBI Director-General, John Cridland, calls smaller firms “job-creation dynamos” but  60% of SMEs say employment regulation are a barrier to job creation as it has a “disproportionate impact” on them. Mr Cridland explained: “Much employment law fails to recognise that private and family-run firms don’t have dedicated human resource teams and tend to manage staff in an informal way. The size and nature of these firms makes them strong advocates of flexible and family-friendly working, and the Government should build on this success.”

I couldn't agree more with Mr Cridland.  Many SMEs don't have a dedicated human resources team to help them through the plethora of legislation and they can get themselves into severe difficulties as a result.  I count myself lucky to work with many of these private and family-run companies and I empathise with their frustration with legal practices that are constricting for smaller businesses.  I agree that legislation is essential to protect both the employer and the employee but it should be proportionate and allow flexibility to enhance growth and development.