So check this out, there’s a study that just came out and it’s showing that labour shortages are seriously messing with businesses. Like, 12% of these firms are actually shrinking because they can’t handle the new demand from customers. That’s wild, man. But get this, most of these companies are trying to fix the shortage problem by up-skilling their existing staff. They’re also getting into automation to reduce their reliance on labour. It’s like they’re trying everything they can to keep things running smoothly.
Now, we all know that the Covid-19 pandemic really messed things up, right? Well, it turns out that it’s causing a phenomenon called the Great Resignation. Basically, millions of workers have left their jobs because, after all the craziness of the pandemic, they’ve re-evaluated what they want from their employers. And this has had a big impact on the labour market, man. It’s actually stifling growth in the UK.
So this new study from the CBI and Pertemps Network Group says that labour shortages are seriously affecting businesses. Like, 38% of these firms couldn’t grow to meet new demand because they just didn’t have enough staff. That’s a big problem, dude.
They did this survey in 2023 and got opinions from 263 businesses all around the UK. And it’s not looking good, man. Another 22% of these companies had to hold back on investments because they couldn’t find people to fill roles. And get this, 12% of them actually saw their business shrink. That’s no bueno, bro.
The CEO of the CBI, Rain Newton-Smith, said something interesting. She said, “Labour shortages are making it harder to invest and grow. It’s like they’re stifling the economic transformation we need for sustainable growth, man. Now, businesses have been doing some cool stuff to get people to work. They’re increasing flexible working, investing in employee health, and all that. But they can do even more, dude.”
So these firms are trying different things, right? Like, 69% of them are up-skilling their existing staff. You know, giving them new skills to handle the shortage problem. And 65% are investing in leadership to help managers better engage and retain their team members. That’s smart, man. But you know what? 60% of these companies are getting into automation and technology to downsize their workforce. They’re basically using tech to cut down on wages bills. That’s wild, bro.
But here’s the interesting thing, some people are saying that relying too much on technology and not investing in benefits could backfire. This CEO of Zest, Matt Russell, says that businesses should invest in their benefits packages to attract and retain top talent. And you know what? He’s right, man. Benefits are a big factor for employees when considering a new job. So businesses gotta step up their benefits game, bro.
And check this out, with the upcoming election, a lot of these leaders are calling on prospective governments for support. Like, 40% of the firms don’t even know which party is best for them or would back a third party. So if parties want the support of these businesses, they should listen up, man.
And get this, 82% of these companies want government incentives to bring in automation. They feel like it’s gonna be tough to make that shift without some help from the state. And 59% of them want the government to make it easier for labour to migrate to the UK. They want all skill levels to be permanently eligible for the UK’s Shortage Occupations List, man.
But here’s the thing, they’re also saying that they should get more government support for making their workplaces accessible for disabled employees. And 54% of them think they should receive incentives to boost workplace health. So they want more support for marginalized aspects of the labour pool, but they don’t seem too keen on financing inclusive measures themselves. That’s kinda sketchy, bro.
