Firms need incentives to take on staff

The UK government was today pressed to offer financial incentives to firms to take on new staff because a lack of confidence in the economy was said to be hitting recruitment.

A survey of 1,000 firms by Bibby Financial Services showed that one in three believed financial aid would help stimulate job creation. The firms said they were keen to invest in more staff to build their business, but many complained of being stuck in a “growth trap” as they do not have the funds to recruit.

The greatest barrier to recruitment was said to be confidence in the economy. Concerns were also raised about the prospect of winning new business.

Edward Rimmer, chief executive of Bibby Financial Services, said: “If the government stepped in, as previous governments have done, and offered financial incentives for each new member of staff for instance, it would give the businesses that much-needed support for real growth.”