Exam Question p. 21

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Q1: "Discuss the practical and legal difficulties for small businesses of finding and attracting good employees" (10 marks)

Businesses invest a lot of time and money in their staff, so it's important to find the right employees. It can be hard for small businesses to find good employees because they have limited resources, so they can't offer the same salaries and benefits as larger companies with more resources. Also, they have limited funds to spend on recruitment - for example many small businesses won't be able to afford advertising jobs in national newspapers or magazines, even though it may be the best way to reach the best potential employees. The businesses also have to consider legal issues when recruiting new staff - it's illegal for businesses to discriminate against potential employees because of their age, gender, race, religion, sexual orientation or because they have a disability. If a business refused to employ someone on these grounds, candidates could take them to an employment tribunal, and the business might have to pay compensation - which could prove to be too expensive for small businesses.