The Business Wisdom some Leaders ignore, but shouldn’t!
The latest labour market facts, figures and predictions show worrying trends, which traditional thinking will not solve. A new sort of Business Wisdom is required. Here’s why….
The British Chambers of Commerce report recruitment & retention of people with the right skill set is the number one business issue for UK firms.
Firms reported they had strong intentions to recruit in quarter 2 of 2019. However, nearly 60% reported a shortage of suitable candidates.
Further, the British Chamber warns that over half of UK businesses with staff from outside the UK will be negatively impacted by government proposals for the UK’s future immigration system, according to new research.
Impending Workforce Shortages
A recent Mercer report predicts a labour market gap of 1.9 million by 2025, should labour demand continue to increase at the same rate as the last ten years.
The shortfall is exacerbated by a dramatic decline in the number of foreign-born workers from Autumn 2017 to Autumn 2018.
This caused a fall of 93,000 EU-born workers and 38,000 Non-EU born workers. This is the fastest rate of decline since records began in 1997. The impact of the Brexit vote is taking hold.
As if to compound the issue, the rise in job vacancies is also at its highest since 2001. At 845,000 for August to October 2018, that’s up by 44,000 from a year earlier.
With 43,000 fewer people looking for work, companies are already starting to feel the impact of a competitive and scarce talent pool. In other words, we need to take action as time is not our side.
Costs of employment
In addition, Business is calling on the next Government to reduce the unsustainable cost of employing people in the UK.
According to research by the Chambers of Commerce, 72% of firms reported that the cost burden of employment costs have increased when compared to five years ago.
Well, we could sit around waiting for the politicians to sort it……..or we could take back control and start a Revolution in the way we attract and retain our people.
Change of Mindset
Recruitment and retention strategies will have to change to reduce reliance on conventional talent pools. This requires a mindset shift away from the traditional 9 to 5, Monday to Friday, office based mentality.
With a more open mindset, we can, however, bridge the gap. For instance, employing more people with disabilities, carers, those who live in remote areas, retirees and parents is a valid solution.
Cue Smart Working options. Different locations, hubs, remote, smart desking supported by technology and smart leadership skills. Different hours and contracts supported by open minds and thoughtful leaders.
Much of the responsibility lies with Leaders and how they engage with their people. Smart Leaders view each person as unique. They provide a tailored package that matches customer demand with workers needs and lifestyle and, in doing so, attract and retain the best people.
Every Business has a Vision and every Worker has their own Mission too. Above all, the job of the Smart Leader is to connect the two and make the magic happen. Productivity improves by 13%.
Leaders who take the time to understand which hours, contracts, locations their individual team members can and cannot do, will be able to attract and retain the best people and mitigate the predictions above.
Those Dinosaurs who do not adopt this Business Wisdom will be left with the leftovers.
The Smart Working Revolution supports Thoughtful Leaders who want to attract and retain the best people by implementing Smart Workforces.