Small companies can boost their recruitment efforts by implementing flexible working practices, such as home-based working, according to one expert from the Chartered Institute of Personnel and Development (CIPD).

Emma Price, senior press officer for the CIPD, suggests that establishing a better work-life balance has become a priority for many professionals and as a result smaller firms can attract the staff they want by implementing flexible working practices.

Furthermore, allowing staff to work from home could help small firms compete with larger rivals for the most sought-after employees, even if they are offering a lower annual salary, Ms Price insists.

"There has been a growing emphasis on work-life balance and many employees are opting for organisations that can offer this either through flexible working or good holiday entitlement," she said.

"Organisations that are flexible and offer a range of working options will appeal to a wider pool of people, and find it easier to retain staff whose needs change, such as parents, carers or older workers."

The CIPD aims to promote good management standards among firms throughout the UK and currently has more than 127,000 individual members.