Medium-Sized Businesses Lead On Job Creation And Wages

Higher Proportion Of Mid-Sized Companies To Create Jobs And Increase Pay In 2015


Medium-sized businesses are set to lead the way on job creation and wage increases in 2015, with a new survey finding a higher proportion are focused on expansion than the average across businesses of all sizes.

The Barclays Employers' Survey 2015 questioned over 660 UK businesses of all sizes. The survey found that two-thirds (67%) of medium-sized businesses are planning to create new jobs in 2015, compared to 50% of all businesses. An even higher 82% are planning on increasing wages, compared to 61% of businesses of all sizes.

The higher potential for recruitment comes as medium-sized companies also reported the highest level of skill shortages. Almost half (48%) of those surveyed reported a lack of employees with specialised skills, with staff for management roles in the highest demand.

Many businesses are looking to fill skill gaps with apprenticeships – almost a third (32%) across the board. David Roust, Head of Recruitment Industry at Barclays, said: "Businesses are becoming increasingly engaged with apprenticeships, hiring more year on year, but it would appear to be the largest businesses that are really ramping up their hiring.

"Smaller businesses may feel more constrained by resources but grants and support available to help SMEs take on apprentices, could open the door to talented new employees and ultimately bring these businesses tangible commercial benefits."

Expert Opinion
The term of small and medium-sized enterprise covers a huge number of types of business, even though many people associate it with start-ups.

"With this in mind, the contribution that medium-sized businesses play in the economy is often overlooked, but this research shows the essential role that such organisations have both in the business world and to support the wider economy in general.

"All of this adds up to a very positive picture, but we would urge medium-sized businesses to not ignore the importance of advice as they look to move to the next level. Legal expertise needs to be on hand to ensure in particularly that regulatory compliance is met in a range of key areas."
Fergal Dowling, Partner