Companies Pay More for Skilled Staff

Companies Pay More for Skilled Staff

Companies Pay More for Skilled Staff

Companies having to pay more to get skilled staff

If you are a highly skilled candidate with extensive experience, a recent survey suggests that now could be the perfect time to look for a new role. 90% of the 400 companies surveyed by The Open University said they were having difficulties in finding suitably skilled staff, with possible reasons for this ‘skills shortage’ ranging from more people choosing to stay in their current role, to reduced immigration in light of the Brexit vote. Unemployment is currently at its lowest level since 1975.

56% of the companies surveyed said that – to attract better skilled candidates – they had increased the advertised salary for a role at some stage in the last 12 months. The average increase in the annual salary offered was £4,150 for roles in small and medium sized companies and £5,575 for larger companies.

53% of respondents said they had been forced to recruit a less skilled candidate as they simply couldn’t find someone with the perfect skill set. The same proportion (53%) said they had invested more in training to bring new employees up to the required level.

Companies reported that candidates with management experience and with good IT skills were in especially short supply.

75% of companies reported that the recruitment process was taking longer than expected, and the average time by which the process exceeded expectations was 54 days.

69% of respondents anticipated further difficulties in attracting suitable candidates during the next 12 months.

58% went as far as to say that recent recruitment issues had ‘damaged’ their company. The university believes that the problem is costing UK companies more than £2 billion per year – £1.7 billion in recruitment costs and the costs of hiring temporary staff to fill skills gaps, and £527 million in increased salaries.

Steve Hill, External Engagement Director at The Open University, said:

“The UK challenge of finding talent with the right skills means that businesses need to look at recruitment, development and retention differently. Now faced with a shrinking talent pool, exacerbated by the uncertainties of Brexit, it is more important that employers invest in developing their workforce.

Organisations need an agile workforce that can embrace change and meet new challenges. The cost of the skills gap to the UK economy shows it must become a business and government priority to build the skills and capabilities of each individual through investing in talent at all levels.”

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