How can your business overcome the skills shortage?

There’s a perfect storm blowing in on skills shortages nationally and across the South West, but there are actions your business can take to soften the impact.

Businesses need to think carefully about the current and future needs of their workforce and put in place some robust plans now to meet skills challenges.

Nicky Williams, Head of Skills at Business West said:

“We’re seeing a perfect storm in skills shortages right now partly due to Brexit and the coronavirus pandemic which has amplified pre-existing skills shortages. Businesses need to urgently re-evaluate how they’re working and put in place some workforce development planning to prepare for the future.”

The Guardian, in an article on 8th July 2021 cited, ‘UK employers struggle with the worst labour shortage since 1997’ saying that the rush to reopen from lockdown and overseas workers leaving the UK due to Covid and Brexit has led to problems in areas such as transport, hospitality and construction.

According to the Recruitment and Employment Confederation (REC) and the accountancy firm KPMG, the number of available workers decreased dramatically in June at the fastest rate since 1997.

Business West has found similar trends in the recent Quarterly Economic Survey (QES) of 400+ businesses.

The results showed that as business confidence and sales rebound, South West businesses struggle to recruit enough skilled staff. The challenge for many businesses, which could constrain the region’s recovery, is to attract, recruit and retain staff. Amongst the businesses trying to recruit, 62% reported problems in finding the right skills to grow, particularly to find suitable skilled manual (50%) and professional (43%) candidates.

One of the key findings was that businesses were trying to recruit at much higher rates than in recent times and that many were reporting problems in finding the right people/skills they needed in their businesses.

Hannah Lovegrove of Lovegrove Essentials – an award-winning Devon skincare brand said:  

“We cannot find the staff we need and cannot afford them when we do.”

Jim Roach, Managing Director of ARV Solutions – a Bristol recruitment firm specialising in the construction industry highlighted the labour market challenges posed by Brexit said:

“The lack of skilled people wanting to or being able to work in the UK from abroad is a source of concern for us.”

In the South West, the hospitality sector is having to readjust to new models and systems. Many hotels, restaurants and pubs are struggling to source chefs/front of house/other personnel having reopened after up 14 months on ice. Some sectors such as social care  and hospitality have struggled to retain staff who faced higher covid risk taking the opportunity to move to growing sectors such as distribution who might even pay significantly more and where hours are more standard and the work involved reducing covid exposure.  

As we come out of lockdown and the Government’s furlough scheme, currently supporting nearly  1.5 million workers is due to close at the end of September, now is the time for businesses to consider how they can reskill and upskill employees returning from furlough and prospective staff. Businesses will need to think about their flexible working policies, their workforce’s personal circumstances and supporting new ways of working including remote and hybrid arrangements.  

It’s an unpredictable time with assessing the skills needs of the current and future workforces. But businesses must address these issues and the Business West Skills team are here to help.

What can your business do to tackle skills shortages head on?

·         It is crucial to carefully plan on how to optimise your workforce

·         Consider how to engage and reach out to new staff and plan the training they will need

Business West is working with Workforce for the Future  in the West of England to provide fully funded tailored, in-depth support to help your businesses plan and adapt for the future by identifying your current and future skills needs.

We do this in 2 clear steps:

Step 1: Help you create a workforce development plan

This process of workforce planning will help your business ensure that you have the right people, with the right skills, attitudes and experience available within budget for your business.

Step 2: Provide support from our experienced Skills advisor

We will work with you to help you understand your business’ skills needs, identify relevant skills support, programmes or training options and access a suite of online tools, resources and workshops to help support your skills strategy.

How much will it cost?

Workforce for the Future is a free service for SMEs based in the West of England. SMES will need to meet the eligibility criteria.

Business West is delivering Workforce for the Future in collaboration with other partners and the West of England Combined Authority.

Find out more about Workforce Development Planning or email us.