Employee retention is increasingly becoming a problem among owners of small businesses. JEREMY SMITH talks to business coach Greg Haddock who explains there are ways that SMEs can protect themselves against the exodus

There are almost 210,000 businesses in the South West and the vast majority employ less than 10 people.

Those who get jobs within those businesses need precisely the same kind of incentives and work environment as people who go to work at larger organisations.

But while the region's larger firms have human resources departments and personnel staff to ensure that the best staff are kept happy, the smaller firms often have to rely on one harassed business owner.

Business adviser Greg Haddock, whose business The Profit Doctor advises small and medium sized enterprises, says: "Problems and costs caused by recruiting the wrong person, absenteeism and unmotivated employees are among the most frequent that smaller businesses encounter.

"Talking to small businesses in Wiltshire I have found that recruitment and employee satisfaction are being pushed down the agenda by what are considered to be more pressing concerns.

"Along with cash-flow problems and long working hours, the inability to attract and retain good staff is a complaint I hear over and over again. The problem really stems from the fact that smaller organisations are far less likely to have a comprehensive recruitment and retention strategy."

Mr Haddock says businesses should take steps to make sure they are reaching the best possible candidate for the job, and that you get the best performance from that candidate once they start work.

His main tips are:

Define the job vacancy and your ideal candidate profile clearly: Most candidates are honest and will only apply if they match the criteria. The clearer your descriptions the better the final fit.

Interview and test: Your gut reaction and first impression are important but you can also reduce the risks by using proper interview and testing techniques. Consider inviting a candidate for a day at your firm before they accept the job offer. This can dramatically reduce the risks for both of you before undertaking a commitment.

Consider an incentive scheme: Staff need a reason to perform well and bonuses days off or some other reward are what everyone works for.

Money is not everything: Sincere praise for work well done, peer recognition and pride in great teamwork are powerful motivators. Also try to make work fun, as it should be plus it makes life healthier and more profitable for everyone.

Consider flexible working practices: Someone may be an excellent worker but may need time to care for a loved one or need to start late or leave early.

Small businesses have an advantage over bigger businesses in this respect as they can tailor the job to the individual. This will often be reciprocated by loyal staff who will work late to get 'the big order' out by Friday.

Recognition and responsibility: Making sure people get the promotions and titles they deserve can ensure they stay with the business. Having targets to strive for is motivating for people in work and keeps them focused.

Listen regularly and attentively: Everybody loves a boss who truly cares and takes an interest. Ask staff about what motivates them, frustrates them and really annoys them at work (It's often silly, little things that are worth fixing before they leave.)

For more information about business coaching contact Greg Haddock on 01454 238183 or visit www.theprofitdoctor.co.uk