Many UK small businesses and organisations are suffering from severe labour shortages, attributed to both the pandemic, and the new immigration laws that came into effect when the UK left the European Union.
Employers have called for the government to address these shortages by making adjustments to their visa policies (for example, to allow HGV drivers from the EU to work in the UK – a job that is not currently recognised as ‘skilled work’, the main requirement for a visa), but no response has been made on this at the time of writing.
The desperate need to recruit in the wake of the pandemic, and to fill vacancies left by individuals from EU countries, as a result of Brexit, has led to some organisations increasing starting wages, offering referral bonuses to current employees and creating sign-on bonuses for new employees.
Despite this, there are still limited numbers of applicants coming forward – reasons cited include the fact that some people are still on furlough; some have chosen to change careers, take early retirement, or leave the workforce altogether; some are fearful of returning to work during an ongoing health crisis; and the fact that there is frequently a mismatch between the people available and the skills required.
Therefore, this month’s blog will look at three potential ways in which businesses can survive and manage the work force shortages, while preparing for a steadier future post-pandemic.
Invest in Employee Benefits
Although we are currently suffering a labour shortage, it is sadly inevitable that unemployment numbers may grow once furlough ends on 30th September 2021, and the reality is that many more individuals may be in search of a new role or even the opportunity for a career change.
The best way to attract new talent to an organisation is to make the advertised position highly attractive. As we stated earlier, some organisations are raising salaries in a bid to attract new applicants, but the main attraction doesn’t necessarily need to be the starting wage. Consider appealing enhancements such as excellent employer pension contributions and death in service insurance plans; or with perks such as great healthcare and dental cover (that can be extended to cover direct family members), or reduced cost gym memberships, which are all factors that have jumped up several steps on many peoples’ list of essentials over the last 18 months.
Labour shortages occur not only from the inability to fill roles though – it can also be triggered by dissatisfied employees choosing to leave.
To mitigate these shortages, an employer should strive to create a culture that encourages employees to stay with their organisation. Again, this doesn’t have to be through high starting salaries (which may be both unsustainable, and galling for existing employees for whom such perks are not applicable). Initiatives such as flexible working options or recognition for commitment through increased annual leave have become increasingly important to employees.
In a similar vein, look to employees who may be considering retirement or have recently retired, and the possibility of offering them continued, flexible employment packages such as part-time hours or working on a consulting basis, where they can continue to be employed in a manner that works well for them, whilst providing a valuable knowledge base and experience which can be used in the training and mentoring for newer employees, which leads us very nicely to our next point…
Invest in Employee Training and Development
While we navigate labour shortages, investing in training and developing skills can really help increase job satisfaction and reduce the risk of losing the valued employees you already have.
Small businesses can capitalise on their ability to pivot quickly without a mountain of paperwork, red tape or copious meetings, to make necessary changes to survive fast-moving challenges.
Committing to training and development courses for employees helps everyone keep on top of new technologies and processes that have come to the forefront since lockdowns began.
Under ‘normal’ (AKA pre-2020!) circumstances, it could be difficult to fit in training for employees who were already busy doing their jobs. The unprecedented isolation and lockdown periods we’ve become accustomed to, however, can offer opportunities for learning and development, away from the usual workplace commitments, in time that might otherwise be lost. Employees in isolation can engage in courses at home, allowing them to return to the workplace with added skills that may come in handy in the future. For example, someone who works as a warehouse operative could take on training that enables them to take on administrative duties that can be done remotely while in any future periods of isolation.
In the even longer term, a commitment to training and development can help promote future job applications, while also resulting in job satisfaction for existing employees, encouraging them to stay with the organisation long into the future.
Invest in Employee Peace Of Mind
There are many people who are fearful of returning to the workplace while the world is still in the midst of a health crisis.
To provide all employees (and potential employees) with peace of mind while in the workplace, invest in the very best in health and safety protocols for your workplace; from distanced workstations and screens (where appropriate) and well-resourced hygiene practices (soap and hand sanitiser stations, good ventilation and air filtration etc.), to regular lateral flow testing and temperature checks.
Beyond this, examine the extent to which existing and new technologies can be used to carry out roles, giving some employees the option to work remotely on a regular to semi-regular basis.
Conclusion
Labour shortages are causing difficulties for organisations all over the world, with political events such as Brexit compounding issues further for the UK in particular.
While labour shortages can be especially painful for smaller businesses, some may find that their ‘smallness’ allows them to quickly respond and pivot to deal with challenges, taking advantage of new technology, inherent flexibility, closer connections with their workforce, and a lack of ‘red tape’ complications that can afflict the larger business. Depending on their trade, and with some tactical creativity, there are many options for organisations to turn to for surviving these temporary hurdles.