By Claire West

Employee law and legislation has stranglehold on small to medium sized enterprises (SME's). Following the appointment of Lord Young by the Prime Minister last week to deliver a “brutally honest” review of Government help for small businesses, results from a survey of SME Managing Directors suggests that the vast majority believe the Government can best help by simplifying employee legislation.

Eighty-eight percent of Managing Directors think employee law and legislation is far too complex, with 67 percent believing that pay and benefits legislation will cause problems over the next few years. In addition, 72 percent think they spend too much time on HR issues.

Talent and career management consultancy Right Management which undertook the research, is asking Lord Young to reduce the amount of legislation following the overwhelming evidence supporting change, revealed in the survey.

Jayne Carrington, Managing Director of Right Management, comments: “We have spent considerable time talking to companies about managing the talent they have. SMEs need more time to focus on those fundamental issues, 61 percent worry about losing talented people from their organisations. If the Government is looking to the private sector to grow and generate jobs, it needs to make life easier for those running SMEs and simplifying legislation would mean companies can focus on growing and strengthening their businesses for job and wealth creation for the economy.”