*92% of HR professionals believe the UK job market is experiencing a labour shortage. Of that 92%, 42% state their company is losing between 11-15% in revenue due to the shortage of skilled workers. Whilst 24% of businesses claim to have lost between 16-20%.
According to the HR professionals that claim to be facing a labour shortage, the most severe implications of this lack of talent include overloading current employees with more work (49%), a reduction in employee morale (44%), and an expected drop in revenue (44%).
Of those that believe the UK is facing a labour shortage, over half (55%) think it started during the COVID-19 pandemic, whilst 20% believe it began before the onset of the pandemic. Furthermore, 45% of recruiters believe the labour shortage is most strongly felt by HR departments, followed by IT and sales departments at 16% respectively.
When asked what actions businesses are taking to tackle the lack of skilled workers, most invest in working with HR agencies to combat the loss of talent (52%). Whilst 46% of businesses are providing employees with more company benefits, 45% have tried reducing employee pressure to diminish their likelihood of quitting. The action carried out the least was the increment in employees’ salaries (at 36%).
One of the consequences of the UK job market becoming so competitive is the increase in candidates’ declining job offers. 37% of HR professionals stated that 21-30% of interviewees had rejected one of their job offers in the last year, whilst 19% faced rejections from 31-40% of candidates.
HR professionals reveal how LinkedIn is their preferred platform when it comes to finding new talent, with 30% primarily utilising the networking tool. However, the study* reveals how HR professionals are increasingly turning to new technologies to hire employees. As 44% believe that technology is altering the whole recruitment process and 58% claim that using the latest technology is a very helpful way to find talent.
Sukanya Awasthi, Content Analyst at GetApp UK, comments: ‘The UK is going through a labour shortage, and there are many factors contributing to it. The preference of workers has also changed drastically since the onset of COVID-19. In such a scenario, employers can benefit from offering tangible benefits to employees.
Moreover, businesses may also want to rethink their hiring strategy to focus more on employee skillsets and less on factors like traditional degrees. Companies who adapt to the needs of the shifting market and adopt technology to connect with the right candidates will potentially see improved outcomes.’
*Survey from GetApp
