Three-quarters of businesses believe the best way of filling vacancies is to turn to existing staff, according to research by the Chartered Institute of Personnel and Development (CIPD).

The research revealed that the vast majority (86%) of businesses are still having difficulty recruiting suitably qualified staff despite rising unemployment figures.

But despite the emphasis on filling vacancies internally, the survey also found that fewer than half of those surveyed used learning and development strategies to aid staff retention.

And a further third said they lost staff due to a lack of career development opportunities, the research added.

"If bosses want to come out of the downturn with a competitive advantage, they would do well to implement strategies aimed at attracting and retaining the right staff," said Deborah Fernon, organisation and resourcing adviser at the CIPD.

"Organisations should also have a look at their learning and development strategies, which can help meet business demands in two ways.

If bosses want to come out of the downturn with a competitive advantage, they would do well to implement strategies aimed at attracting and retaining the right staff

"Firstly, those employers who have development opportunities are more likely to stay, which reduces turnover. Secondly, a good learning and development culture will foster a strong employer brand, helping to attract key talent."

The government recently announced plans - which have been welcomed by the CIPD and the TUC - to enable employees to have the right to request time off work for training, although it has stopped short of forcing companies to pay for that training cover salary expenses during the period of absence.

But the Federation of Small Businesses has argued that small firms should be given greater credit for the informal, on-the-job training many provide staff when promoting them to fill vacancies.

"We support the government's efforts to get more people into training, but employers should have the final say based on the needs of the business," said Colin Willman, FSB education and skills chairman.

The government claims a third of firms offer no formal training at all, which it claims affects 8m workers every year.