A new survey conducted by OnePoll for Natwest Mentor has found that around a quarter of small and medium-sized businesses (SMEs) have been unable to replace staff that have left due to labour shortages
Labour Shortages
As we highlighted in a recent article, the Office for National Statistics (ONS) found back in May 2022 that the problem with labour shortages had become so acute, that the number of job vacancies exceeded the number of people available to fill them for the first time ever. The ONS report for May 2022 revealed that the number of job vacancies stood at 1,295,000. However, the number of people who were available to fill those positions, the unemployed, had fallen to 1,257,000. That mean’t that the number of job vacancies exceeded the number of unemployed by 38,000.
Job Vacancies At Near Record Levels
Whilst ONS data shows that the number of job vacancies peaked at a record 1,318,000 back in March 2022, and has now fallen back since then to 1,294,000 in July 2022, the number of job vacancies remains at near record levels. The problems caused by labour shortages, therefore, remains acute.
SME's Unable To Replace Staff
The new survey by OnePoll of 500 SME's has found that 28% of SME's have been unable to replace staff that have left due to labour shortages.
Other Findings
The survey also found that:-
- SME's based in the north east have faced the greatest challenges in replacing staff (69%), whilst those in the north west have found the task easier (23%)
- SME's have found it harder to retain staff aged between 25 and 34 (29%)
- 62% of SME's report higher running costs, with 55% stating that those costs have run higher than inflation. 95% reported higher costs linked with the cost of living crisis.
- Whilst 35% of SME's state that team dynamics have been improved by hybrid working, 32% plan to jettison the arrangement within 3-6 months
- 24% of SME's cited inflation and profitability as their main concern, whilst 14% stated that recruitment was their biggest problem
- 29% of SME's reported that salary negotiations had become problematic
- In terms of other recruitment challenges, 29% of SME's had had candidates not turn up for interview and 23% reported that they had had new recruits leave shortly after joining
Recruitment Agencies: Stress Becoming A Problem
A separate survey conducted by Tribepad has found that 39% of recruiters suffered from stress, with a quarter struggling to cope due to labour shortages and the record number of vacancies. The survey found that the main causes of stress were:-
Findings
- That they themeselves were short staffed (25%)
- Difficulties in finding the right people (12%). 13% reported that there was a lack of quality candidates, with 59% stating that the problem had got worse of late
- Deadlines (10%)
Comment
The CEO of Tribepad, Dean Sadler, stated: "We’re living in a candidate driven market, which has its benefits for job seekers. But the other side of this is an area rarely explored – the impact it has on those people tasked with filling those roles. Our survey reveals the impact that the talent crisis is taking on those working on the frontlines of recruitment. Burnout, a lack of recognition, and mounting pressures are placing a toll on those on the frontline. Companies need to invest in their HR teams, providing them with the support and tools they need to meet the exceptional demands that are currently being placed upon them."
Reaction
Commenting upon the problems caused by labour shortages for SME's, the technical advice lead of NatWest’s Mentor, Natalie Nelson, stated that: "Our survey reveals that SMEs have a fight on their hands – not only to stay afloat as costs continue to rise, but also to keep hold of staff, adapt to society’s new work-life expectations, and to recruit new team members."
