Almost 80% of small UK firms struggle to recruit enterprising staff, and almost half said that its most enterprising employees left for larger firms, according to a survey by Orange.

The survey also found that about 70% of firms battled to retain innovative people, however, only 12% felt better pay would keep staff loyal, with the nature of the work offered seen as most important.

The study found that offering new challenges as well as interesting work was seen as key to retaining the best staff, according to respondents.

Martin Lyne, director of small business at Orange Business Services, says: “Unlike large companies, many small businesses lack the financial resources to attract talented people with high salary offers.

“And with skills shortages a concern in many industries, the challenge of finding and retaining the right people is likely to become more acute.”

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