Flexible benefits ''could entice employees into the private sector''

Recent cuts to public sector jobs could result in more recruitment opportunities for the private sector as employees search for flexible benefits and stability.

Tom Hadley, director of external relations at the Recruitment and Employment Confederation, said companies will be in a position to properly assess the current skills within their organisation and plan ahead for a potential recruitment boom.

Staff retention is likely to become a central issue and Mr Hadley said: "Any company looking to grow in the future needs to carefully consider the skill sets needed to support this growth and whether it needs additional staff or expertise to make this change possible."

He added that the private sector could feel the knock-on effects of the chancellor''s cuts to public expenditure, but the positive outcome would be that companies could pick and choose more during recruitment.

Businesses were becoming more confident in their hiring decisions, he noted.

The British Retail Consortium estimated last week that increasing VAT to 20 per cent would mean the loss of 163,000 jobs in the UK over the next four years, with consumer spending reduced by £3.6 billion.
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