The continued growth in demand for labour seems set to lead to a further tightening of the UK labour market for employers.
That, the Chartered Institute of Personnel and Development (CIPD) argues, will make it harder to find the skills and labour those organisations need.
With 61% of employers in the latest Labour Market Outlook reporting difficulty filling at least some of their vacancies, the CIPD warns that employers’ demand for skills and labour may not be met by supply.
Published quarterly by the CIPD and The Adecco Group, the Labour Market Outlook (available at https://bit.ly/2KVRPkV) notes that in the same period last year, the proportion having difficulty filling vacancies stood at 56%.
In response to the increasing challenge of finding the right people, 28% of survey respondents confirmed that they are raising wages.
Employers need to think more creatively about their workforce planning and talent pipelines to ensure that they can continue to access and develop key skills, the CIPD’s Gerwyn Davies suggested.
In particular, he explained, organisations must put much more effort into attracting and retaining older workers, women returning to work after having children and other disadvantaged groups in the labour market – and should also be investing in training and developing existing workers.
For The Adecco Group UK and Ireland, Alex Fleming argued that in a labour market where competition for talent is increasingly fierce, many employees are looking for much more than just a strong wage packet.
Benefits such as flexible working, modern workspaces, collaborative office spaces and inspiring management are all attractive to different segments of the labour market, he noted, adding: “It is time for employers to recognise talent as individuals and tailor employment packages accordingly to avoid missing out on key skills which will drive innovation and success.”