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Small businesses introduce innovative HR practices in response to the recession

Small businesses in the UK have responded to the downturn with innovative HR and leadership solutions, according to a report from the Department for Business, Innovation and Skills (BIS).

The BIS research found more than 40% of small businesses have developed initiatives such as switching staff job roles (19%), adjusting working hours (26%,) investing in staff training and motivation (33%) and recruiting new staff (15%) to beat the recession.

More than three quarters (77%) of 500 businesses surveyed that have made such changes believe they have benefited as a result.

Almost nine out of 10 small businesses (87%) manage these changes in-house without employing a consultant and 57% of bosses said this gave them more confidence in their own business.

The news comes as BIS launches its Employment Law Organiser, which sits as an icon on employers' desktops and can be used as a personal organiser to cover the complete lifecycle of each employee. The new tool can receive updates on when new employment legislation is introduced and can remind users of their obligations.

Lord Young, minister for employment relations, said: "The Government is committed to supporting small businesses which is why we are launching the Employment Law Organiser, as an extension of the advice we provide for them. Developed in consultation with 250 entrepreneurs, the new tool is available on the Business Link website to help keep on top of HR-related changes."