Experts have warned that small businesses must prepare for the new generation of workforce who will demand more benefits than ever before.

The new workforce, dubbed 'the Millenials', will be more talented and more ethically aware than any that came before them, meaning that employers will have to work extra hard to keep them satisfied.

At a PricewaterhouseCoopers conference in Barcelona today Michael Rendell, partner, PricewaterhouseCoopers LLP said: "Companies are going to have to keep up with the changing demands of employees if they want the best work force.

"As companies have aimed to minimise risk in areas such as pensions provision, employees have had less reason to stick around if they are dissatisfied."

He added: "With talent at a premium globally, companies will need to work hard to keep these people engaged."

The conference also heard that new employees will require greater flexibility and will expect benefits which profit both themselves and the environment.

The future workforce will be more skilled and completely e-literate, so, with talented workers in short supply in sectors such as IT, their value will be high.

Coupled with the fact that the next generation will have less employer-loyalty than ever before, the message being given to employers is, be prepared.

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