North west employment boost as half of SMEs expect to take on staff in the next year

The North West could see a rise in employment as half (48%) of small and medium-sized enterprises (SMEs) in the region plan to take on new employees in the next 12 months, and more than half expect their turnover to grow - according to a new HSBC Commercial Banking survey.

The survey revealed that North West SMEs are optimistic about growth and have a strong desire to recruit skilled, permanent staff to support increased activity.

Almost half of SMEs in the North West – 46 per cent – also believe that permanent, skilled staff will benefit the growth of their firm more than agency or casual staff.

Of the businesses in the North West surveyed, 53 per cent expect turnover growth in the next 12 months, with a third expecting growth of at least six per cent.

Chris Wormall, HSBC’s Head of Business Banking in the North, said: “This survey shows that SMEs in the North West are confident about growth, with half set to hire full-time staff to help them grow. Hiring and training skilled staff takes investment – which is why HSBC has committed £700 million to lend to SMEs in the North West this year and why we are running ‘Strategies for Growth’ workshops to help businesses in the region realise their ambitions.”

HSBC SME survey: Key Findings in the North West: 

• 53 per cent of SMEs in the North West expect turnover to grow in the next year, with 31 per cent expecting turnover growth of at least six per cent
• 48 per cent of SMEs expect to add a full-time member of staff this year.
• 46 per cent of SMEs believe permanent skilled staff are most likely to benefit their business – against only 6 per cent believing agency staff are best placed to assist them.
• Finding customers is the most pressing concern for all SMEs in the UK, while one in six SMEs say they are concerned by competition.
• Maintaining staff pay rises is a pressing issue for smaller SMEs in the UK, while labour and/or production costs are greater concerns for medium-sized enterprises.