A fifth of all CVs received by owner managers are from applicants living outside the UK, according to a new report.

Of the 135 small to medium-sized business bosses questioned by insolvency management company Begbies Traynor, 30 said they had already hired foreign applicants.

All said they would hire someone from outside the UK as long as they were the best qualified for the position, with 90% admitting that the chance to recruit a skilled staff member for perhaps less than the UK equivalent pay scale was a factor in their decision.

However, Begbies Traynor’s research highlighted the difficulties faced by businesses looking to recruit workers from abroad.

Over 60% of respondents said they had 'little or no idea' about how overseas qualifications compare to its UK equivalent, with the same amount highlighting their concerns over the language barrier if they were to hire overseas staff.

Another common worry among small business chiefs was that many applicants seemed 'overqualified' for the roles advertised, with 86% listing it as a concern when hiring from abroad.

South-east managing partner of Begbies Traynor Mark Fry said: “Picking the right candidates from home grown talent is tricky enough, but when we add in cultural and language barriers, picking the right staff becomes even harder.

“But the effort is generally well worth it. First-class employees are a powerful resource to any company and there is plenty of evidence of the benefits that a diverse work force can bring to a company seeking a competitive edge.”

The number of people joining the British workforce from the newest EU members rose by 145% last year, according to government data released late last week, with most coming from new EU members such as the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia.

© Crimson Business Ltd. 2006