Few UK companies facing staff shortage plan to raise wages, survey finds

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Few UK companies facing staff shortage plan to raise wages, survey finds


Less than a quarter of UK companies struggling to hire staff after pandemic-related restrictions eased plan to increase wages they offer to attract new hires, according to a report.

Employer confidence in hiring has peaked in nine years as companies attempt to tackle what some recruiters have described as the worst staffing shortage since the late 1990s, Chartered Institute study finds of Personnel and Development (CIPD).

The quarterly survey, which covers more than 2,000 employers and covers all sectors of the economy, found that 69% of employers planned to hire new staff in the coming weeks, up from 49% at the same time. ‘last year.

When employers with hard-to-fill vacancies, which are most common in industries such as hospitality and healthcare, were asked how they would deal with the gaps, however, only 23% said that ‘they would increase wages. Forty-four percent said they would develop the skills of existing staff, 26% intended to hire more apprentices, 14% said they would do nothing and 9% that they would introduce or would increase automation.

Employers in some industries have offered registration fees of up to £ 10,000 to tempt applicants, with the problem of healthy workers isolating themselves after being ‘pinged’ by the NHS test and tracing worsening shortages caused by changes to immigration following Brexit and skills shortages.

However, the CIPD’s Labor Market Outlook Survey indicated that employers’ compensation intentions were not higher than pre-pandemic levels. It showed that employers’ median expectations for base pay settlements remained at the 2% achieved in the last quarter, after four consecutive quarters at 1%.

The report also found that 81% of employers expected a salary review by June 2022. Of these, 33% expected a salary increase, 12% a freeze and 1% a decrease. Thirty-seven percent said it was “hard to say” and 17% said they didn’t know it.

The results come as millions of UK workers quit their leave as pandemic restrictions are relaxed and the Treasury’s multibillion-pound wage support program slashed. Its complete closure is scheduled for the end of September.

Jonathan Boys, labor market economist at CIPD, who represents human resources professionals, said some employers may raise wages further if recruitment problems persist, but companies will also consider other ways to attract new employees.

“With difficulties finding workers in some sectors, employers will have to think longer term about how they meet skills needs,” he said. “It is important for organizations to carefully consider their recruitment and retention strategies and determine where they need to develop them, for example by increasing investments in training and retraining.

“Retention strategies must be designed with improving the quality of employment in mind, as employers have a huge role to play in improving working life. “

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