H​as Brexit Contributed Towards a Skills Shortage?

8 December 2022|Related :

The chief economist of the Bank of England, Huw Pill, has said that Brexit has contributed to a skills shortage that is the driving force behind the economy’s weak performance compared to other countries.

At an event hosted by the Institute of Chartered Accountants, Pill said that it wasn’t yet clear whether the record number of migrants from non-EU countries were as productive as those from the EU that have left since Brexit took force.

“Some of the skills shortages were being met by the inflow, on a relatively flexible basis, of [EU] workers and that has changed and disappeared,” he said.

The Bank of England’s rate-setters have raised a warning over the UK’s labour market which is rapidly shrinking. During the pandemic, over 600,000 people left the jobs market and haven’t since returned, driving unemployment to the lowest level since 1973.

These figures could lead to higher wage pressures, which are likely to fuel inflation.

According to Euro News, sectors struggling with skill shortages include hospitality, horticulture, meat and dairy, lorry drivers and social care, leading to challenges for businesses trying to keep up with customer demand and keep businesses afloat.

Many of these industries have relied on workers coming from abroad to work in the UK, however, after many of these workers never returned after the pandemic due to Brexit, these industries have faced significant shortages.

Research from the Recruitment & Employment Confederation found that at the end of 2021, 88% of recruiters said that labour shortages were the biggest concern, while the second largest concern was skill shortages for 65% of recruiters.

What is the Government Doing to Resolve the Issue?

The government has added over 30 sectors to the Shortage Occupation List, which workers coming from abroad can apply for a visa for in the UK.

How to Overcome Staff Shortages within Your Business

Advertise in the Right Places

When advertising job roles, there’s no point displaying them where your target audience won’t see them. Make sure to advertise where you will capture your target market’s attention.

Here are some of the best places to advertise job vacancies:

  • Local newspapers and magazines
  • In the windows of your premises
  • On your social media pages
  • LinkedIn
  • On local Facebook groups
  • On industry specific Facebook groups
  • Free websites

Make sure to explain the role in detail and list any of the benefits of working for your business. 

Be Smart When Hiring

Although it may be tempting to fill the role as quickly as possible, it’s important not to hire just anyone as this can often result in short-term employment and a high workforce turnover, which ends up costing your company a lot more in the long run.

Make sure whoever you hire has the skills and attributes needed for the role, and that has potential for long-term employment.

Provide High Quality Training

One of the best ways to keep staff for a long time and maintain their skills is to offer training. Make sure your staff have all the tools they need to complete their roles and responsibilities.

Training can be carried out on-site or remotely via a video call.

Set Up a Referral Scheme

By incentivising staff with a refer a friend scheme, you can get the word out about your vacancies to more people.

Get Professional Help

For more advice on how to reduce staff shortages within your business, get in touch with our team at Ryans Chartered Accountants.

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