Insider Media Limited

Forty-nine per cent of businesses in the Midlands are expecting to recruit over the next 12 months, according to research by Yorkshire Bank. Birmingham-based managing partner Stephen Cronin told Insider that it was a sign that “businesses are preparing to move forward”. The survey also revealed that more than a third of companies in the region think that their business will grow over the next year.

The research showed that 52 per cent of businesses in the region intend to recruit skilled staff, while over a quarter are looking to recruit manual workers.

Stephen Cronin, managing partner at Yorkshire Bank’s Financial Solutions Centre, said: “Business owners are reaching a point where they think; we have to move forward, we have to recruit and grow at some point. It seems that many see this period as a chance to dip their toes into the water.”

However, despite an increase in confidence levels, 23 per cent of businesses still expect to see a reduction in business in the next 12 months while 22 per cent of Midlands businesses expect to reduce their staffing levels over this period.

Cronin said: “Some businesses are still concerned. The impact of the recession and government spending cuts are still on people’s minds. Businesses are moving on slowly but surely.”

The research also found that businesses recognise the importance of investing in their existing workforce with 44 per cent identifying staff retention and recruitment as their key priority over the next year.

Sixty three per cent of respondents in the engineering and building sectors said that they were looking to recruit over the next 12 months.

“The building sector was hit particularly hard by the recession”, said Cronin. “Many companies could not recruit for a while, and were forced to sit on their hands. Now the industry is looking up, and people are looking to move forward. By investing in their workforce when the time is right, businesses are helping to pave the way for growth and future success.”