The survey conducted by the British chambers of Commerce, showed the rock-bottom opinion held by bosses of many British workers.
The bosses of more than 300 small and medium-sized businesses were asked: "What reasons do you have for employing migrant workers?"
They said migrant workers from anywhere from India to Poland have "a better work ethic" and "are more productive".
British workers also lack the "required skills" and there is a short supply of local "candidates with required experience".
David Frost, director general of the business lobby group, said it is "troubling" how British businesses are turning away from British workers.
He said "it is troubling that so many businesses do not want to employ British workers. The UK's chronic skills shortage must be addressed by the government and reform of the school curriculum is needed to ensure that young people enter the workforce with the necessary skills and the right attitude to get on at work."
The survey found that the majority - 75.8 per cent - think migration is beneficial to the economy.
The influx of Polish workers into Britain since May 2004 has been particularly welcomed by bosses who value their work ethic and skills.
This is the second time in only a few weeks that research by a major business lobby group has berated the failings of the British workforce.
Last month, the Institute of Directors said employers think migrants are hard working, more reliable and better skilled.
A separate report from the Association of Graduate Recruiters said half of major employers are unable to fill graduate vacancies because students lack basic work skills.
Prized graduate jobs have to be left open every year even though universities are turning out soaring numbers of students.
Bosses blame this on the low calibre of graduates, even those with first or upper second class degrees. One graduate going for a job at an investment bank began his interview saying: "You all right mate?"
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