Navigating skill shortages

what is a skill shortage?

One of the main concerns in today's job market is the shortage of skilled professionals across various sectors. The Recruitment and Employment Confederation (REC) shares that skill shortages are most common in sectors such as accountancy, construction, teaching, and nursing. A recent manpower report reveals that around 80% of employers are reporting talent shortages. This means thinking about a recruitment strategy that requires us to come up with fresh and imaginative ways to attract and retain the right employees.

Researcher Josh Bersin - Founder and CEO of The Josh Bersin Company has pointed out that the time to hire is also increasing, leading to prolonged vacancies and potential disruptions to business operations. Even speakers from Royal Mail said that the average time to hire is around 67 days, emphasising the need for patience when hiring and a well-structured recruitment process.

Royal Mail said that "the average time to hire is around 67 days, emphasising the need for patience when hiring and a well-structured recruitment process"

why is there a skill shortage?

Cost of living crisis: impact on recruitment
The rising cost of living over the past year, coupled with inflation rates of 8-10%, is a driving factor for job seekers' preferences when looking for what kind of job they want and the shortage of skilled workers. In response to a 5% increase in the cost of living, individuals are actively seeking higher-paying job opportunities. A Reed report highlights the average salary across sectors has increased. For talent acquisition and contingent labour professionals, this translates to higher fees due to the percentage-based compensation model. Overall, this means that contractors are looking for higher salaries to cover the increasing cost of living which is putting pressure on hirers.

Geographical location
Brexit is one of the factors that has contributed to skill shortages in certain industries in the UK. The United Kingdom's decision to leave the European Union (EU) had implications for the movement of labour and workforce availability. Before Brexit, EU citizens had the right to work and live in the UK without requiring a visa. After Brexit, there were changes to immigration rules, and certain industries that relied heavily on EU labour, such as healthcare and agriculture, faced difficulties in recruiting talent from the EU. For any queries about completing right-to-work checks for your contractors, please get in touch.

Pandemic
Millions of people lost their jobs due to COVID-19, but the new jobs that are appearing are quite different from the ones that were lost. This has created a gap between the skills that are now needed and the ones that people already have.

The future of skill shortage

After the recession, companies are a bit hesitant to make long-term commitments. The uncertainty about the economy and future stability has led them to adopt a preference for temporary workers over permanent contracts, as a way to stay flexible and reduce potential risks. This approach enables organisations to modify their plans with ease, avoiding significant risks. So, temporary workers are becoming more important in the workforce, which means recruiting and managing them needs a smart strategy.

What can we do to fix it?

Seeking international recruitment
Amid skill shortages, adopting a global perspective can be valuable. International recruitment offers a way to bridge this gap. Exploring talent worldwide enables you to not only address talent shortages but also bring diversity and innovation to your team. Our expertise at giant precision can make global talent acquisition smoother for you, ensuring that you utilise the full potential of a diverse and skilled workforce.

Benefit programs
Why not consider introducing a benefit program? Such programs can include various perks such as health and medical coverage, retirement plans, discounts at retail establishments, and paid leave. This can be a strategic approach to attract skilled personnel and enhance the attractiveness of their compensation packages.

For instance, at Giant, we have developed the Giant Advantage benefits scheme, which provides our employees with an enticing reward system. This scheme encompasses an array of advantages, including salary sacrifice initiatives, improved retail and leisure benefits, and an extensive employee assistance program. These offerings translate into substantial annual savings for our employees.

We can help!

Need help to attract new talent? Our in-house team is ready to support you. Save both time and money with our managed services – they cover everything from applications, screening, and onboarding to timesheet management, billing, limited company engagement, employment, payroll, and payments. Our ATS system and talent bank are at your service!

The Giant Precision platform isn't just about unique software and services; it also connects you with our team of experts. This means we can guide you in managing your contractors throughout their entire journey with you.