The United Kingdom has been facing a skilled workers shortage, which poses a threat to the growth of UK businesses regardless of their size and scale. This is reflected in how almost two-thirds of London businesses struggle to recruit and fill vacancies. While the shortage can be observed for all types of roles, workers equipped with digital and sector-specific skills have been particularly hard to find. Additionally, the UK Parliament notes that the sectors with the highest number of vacancies are accommodation and food services, construction, human health, and social work.
This lack of skilled labour supply can be attributed to multiple factors, from an ageing workforce to inadequacies in the educational system. Fortunately, UK businesses can navigate this talent shortage and remain competitive by including the following aspects in their action plan.
Upskilling current employees
When current employees do not have the updated and in-demand skills, then companies have to compete in an already tight job market for new and skilled talent. This is what is currently happening across all industries, especially as technology grows increasingly crucial for day-to-day operations.
A report by People Management on digital skills clearly shows that demand far exceeds supply. Only 11% of the UK workforce possess the skills needed to adopt rapidly evolving technology, leaving 72% of businesses with vacancies for digitally skilled workers. Upskilling the current workforce, however, is what will enable UK businesses to navigate the talent shortage while also accelerating their digital transformation.
Whether it’s done through on-the-job training or employer-sponsored courses, upskilling allows businesses to meet the demand for digital skills internally. Investments in employees’ professional learning and development are also reported to increase job satisfaction by up to 15%. This helps businesses improve their retention rates, as opposed to expending most of their resources on hiring and turnovers.
Offering competitive pay and benefits
Aside from investing in existing employees, UK businesses also need to amplify their talent acquisition efforts in order to come out on top of the skills shortage. One way to do this is by offering a competitive pay and benefits package.
Due to the cost of living crisis in the UK, 37% of the workers surveyed in Beamery’s Talent Index view salary as the top reason for pursuing a job opportunity. Increasing your pay rates can thus influence a candidate on whether or not they accept your job offer.
Meanwhile, a survey by job search platform FlexJobs reveals that work-life balance is the top benefit that 63% of workers want. As such, it is crucial for businesses to focus on improving work-life balance through non-monetary benefits like corporate wellness programs, office gyms, and alternative work schedules.
Maximising recruitment solutions
While in-house hiring managers can handle the talent pipeline, businesses can also choose to outsource recruitment services to save valuable time and resources. The recruitment solutions by LHH show that relying on a much more expansive talent pool and innovative strategies can help you stay focused on your core business activities.
When looking into recruitment solutions, it’s crucial for businesses to determine their specific talent needs in terms of the length and type of employment they are looking for. Direct placement services can work for attracting full-time, in-demand talent, while contract staffing solutions are suited for seasonal or business cycle-based projects. Meanwhile, interim management can be leveraged to quickly fill in critical executive positions.
There is also a range of government programmes available for employers who are looking for skilled and in-demand talent. Among these is the UK government-funded sector-based work academy programme, or SWAP for short. SWAP offers tailored support to meet your current recruitment needs. This includes pre-employment training, work experience placement, and job interviews to ensure that your new employees have the right skills from the outset.
Ultimately, navigating the skills shortage requires a combination of internal and external approaches that are aligned with your business resources and the job market’s trends and demands.
We have lots of other recruitment articles on our site – why not start by checking out this piece titled ‘Maximizing Efficiency: How CRM Software Simplifies Your Recruitment Process through Automation?’
