Navigating the ‘great resignation’ and skills shortage
2021 was the year of the “Great Resignation” – a year when workers quit their jobs at historic rates. According to some, the trend was driven by an economic and psychological shift as employers struggled – and often failed – to tempt anxious staff to return to industries that have too often treated workers as dispensable.
Figures released this week by the Office of National Statistics showed the ratio of vacancies to every 100 employee jobs has continued to rise, reaching a record high of 4.3 in November 2021 to January 2022,, as the post-pandemic labour market continues to recover.
Meanwhile, data provided by Bullhorn, revealed that demand for contractors was also up year-on-year, increasing 38%.
Month-on-month figures also showed a spike in jobs, with permanent and contract vacancies increasing 104% and 78% between December and January, which can be attributed to a bounce-back following a seasonal lull.
While the figures look good for anyone job-hunting, it also means that around 40% of businesses have been struggling to find workers with the right skills.
This continued pressure on the recruitment market comes at a time when skills shortages are plaguing the UK, with the Office for National Statistics (ONS) revealing at the end of last year that over half of businesses reported they are unable to meet demand due to worker shortages.
What the experts are saying
“With skills shortages rife and vacancies continuing to rise, businesses must be strategic if they hope to attract talent in 2022,” says Rob Brodie, Head of Corporate Sales at JobAdder.
“Retraining and reskilling candidates will be essential in addressing this shortage and building talent pools for company growth. Similarly, reassessing the skills of existing employees and upskilling, when necessary, will help to fill vacancies and increase your firm’s reputability.
“Having a strong employer brand will also help businesses attract a new wave of candidates. The Great Resignation has shown us just how valued company culture and employee treatment now ranks and this will continue to be a key theme in 2022.
“One thing we will also see is an increased reliance on technology to remove some of the burden of already over-stretched hiring teams. The pandemic has accelerated the growth of technology and if employers hope to remain agile during unprecedented times, they need to harness the latest technologies to stay ahead of new trends and engage new talent in new ways.”
“While it’s encouraging to know that the hiring market remains buoyant, the continued monthly increase in vacancies raises further concerns of skills shortages across the country.
If the Government is to create a labour market that is dynamic and flexible to address the sector wide skills shortages, the Apprenticeship Levy should be broadened to cover administrative costs and ‘bench’ salaries to facilitate a commercial, realistic “flexi” scheme in which recruitment firms can fund “flexi-job” apprenticeships enabling the professional development of agency workers from placement to placement. However, the scope for apprenticeships must also be widened to enable independent professionals and other members of the self-employed workforce to fund their skills training by transfer of levy funds.
“We also can’t forget that the UK remains a relatively unattractive place for highly skilled independent contractors who still have no viable and attractive visa route into the country. With vacancies showing no sign of slowing down, and employers struggling to source talent across all sectors, action must be taken to not only allow the development of home-grown talent, but also access to highly skilled individuals from outside the UK.”- Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies
“Based on all the conversations I am having I don't think this level of productivity will surprise many,” says Joe McGuire, Sales & Strategy Director, Analytics at Bullhorn.
“The market conditions remain very exciting and we are going to continue to see a war for talent for some time. It's important for agencies to be focused on improving efficiency and utilising their existing candidate relationships in a much more strategic way.”
So what can you do to make sure those empty roles get filled as quickly as possible?
Be flexible
Be more flexible about role requirements – As talent remains scarce, businesses mustn’t be overly selective when addressing their deficiencies. While it’s important to recruit individual’s that suit specific needs, it’s also essential for companies to grow their talent pools by considering candidates who have transferrable skills and can easily be retrained or reskilled to company standards.
Try to keep an open mind when reviewing applications with miscellaneous experience, as many skills are transferable.
Build your employer branding
The pandemic has reshaped the workplace and accelerated technology, leaving many companies with outdated branding that is not suitable for attracting the new wave of talent.
Updating employer branding and cultural initiatives will make your company a more appealing place to work and is crucial in building a sustainable organisation.
Redeploy existing talent
The perfect person for the job could already be working for you. If there is something stopping you from promoting a current member of staff to fill a vacant position, consider if training might make a difference. For example, the successful completion of management training could help an acting manager become permanent.
Diversify job posting
If you always advertise your vacancies in the same places, you are likely to limit your choices. Consider advertising through alternative sites, platforms, magazines, trade papers, network groups, referrals and so on to reach new people.
Promote on the job training
Keen and motivated applicants seeking a career change might not have the exact experience that you need, but on-the-job training can attract a new wave of talent to your business. The development or honing of skills can be achieved through apprenticeships that target all age groups, or a staff training scheme that’s worth shouting about.
Re-engage retired employees
Because of the pandemic, specialisms in demand, such as health and safety, have seen a resurgence of retirees re-entering the job market. This is not the same as “fire and rehire” and there is a process that should be followed. If you are considering this, professional HR support is advised.