What is the skills shortage in the UK?
More than half of UK businesses are currently experiencing skills shortages, and a survey of almost 500 leaders of medium-sized businesses across England and Scotland found that they all thought the current skills shortage in the UK could pose a threat to their growth.
As the inflated salaries, temporary staffing and recruitment fees are adding to the financial burden of Covid-19, experts urge employers to take longer-term approaches to talent.
Matt Weston, senior managing director at Robert Half said: “Every company regardless of its size, industry or sector depends on its employees to achieve its objectives, which means maintaining a productive workforce and hiring skilled talent that adds value to the team.
According to one research, the economic resurgence and appetite for growth over the last 12 months has increased recruitment demand, leading to a talent shortage that has triggered poor hiring decisions.
Sectors impacted by the skills shortage
Some work sectors have been impacted more than others by the workers skills shortage. Here are a few of the most impacted sectors by the skills shortages:
- Retail and Hospitality – Heavily impacted by the pandemic, these sectors have witnessed a drive to automate back-end processes. However, this will also result in the loss of many jobs or the requirement for new skills that are not now in demand in the industry.
- Information and Comms Sector – This sector is growing day by day and is now more difficult than ever to find professional with the right skills that help companies thrive, adapt and embrace the technology changes.
- Construction, manufacturing, and engineering – In this sector, 1 in 3 vacancies are now hard to fill due to shortage of skilled employees with the right qualifications or experience.
- Accounting – With a rise in the advertised vacancies between the months of March and June 2016, this is a sector with plenty of opportunity to work, but it’s also a sector with high demand for candidates with the right training and skills.
How can businesses contribute to prevent a future skills shortage?
The organisations are reviewing their recruitment strategies when it comes to the skills shortages. The REC’s specific recommendations for businesses are:
- invest in the development of their employees giving them the chance to grow
- investing in vocational training for early-career employment, providing the more specific skills and on-the-job training required for their future workforce and diversifying their talent pool.
- Improve staff engagement, actively listening to staff and deploying a range of tools that help retain and attract skilled people.
According to research, neither the businesses nor the government can solve the shortages alone. It’s time for both to get this right and serious about long term workforce thinking.
REC CEO Neil Carberry said: “We haven’t had to look far for evidence that labour shortages have the power to bring segments of the UK economy to their knees recently. From chaos at airports to driver shortages and NHS waiting lists growing – the underlying issue of labour shortages has burst out into the open.
For companies, Carberry went on to say, “that means prioritising workforce planning at the highest level, investing in a skills pipeline – co-operating with other firms and local education providers to do it – and treating recruitment with the importance it deserves. An approach to staffing that only focuses on cost is a highway to nowhere.
Impact Recruitment have published some interesting case studies and articles discussing staffing and reducing peak problems. To find out how Impact Recruitment can support your business, give one of our experienced consultants a call on 01604 239555 or email info@impactrecruitment.co.uk
