The Office for National Statistics has revealed that over half of businesses reported they are unable to meet demand due to worker shortages in 2021. HR teams - already over-stretched - are struggling to source and secure vital skills.
In addition, the latest report from the Association of Professional Staffing Companies has revealed that vacancies for permanent white-collar jobs have risen again by 28 per cent compared with the same time last year, whilst Bullhorn - a global leader in software for the staffing industry - cite an increase of 38 per cent, year-on-year.
The Association of Professional Staffing Companies also reveal an increase in placements, with candidates who accepted new roles increasing by 84 per cent between the beginning of 2021 to the beginning of 2022, with contract placements up by 12 per cent. As the Office for National Statistics found a decline in employment levels, the increase in vacancies will add to the pressure already being felt by HR teams.
In a poll of HR magazine readers by Randstad RiseSmart - a career transitions organisation - 44 per cent of companies said that they were currently outsourcing work to freelancers and contractors rather than permanent hires, to plug the skill gap. To deliver some business functions, 27 per cent stated that they partner with third parties and 26 per cent said they are either automating to reduce the need for hiring new people, or reassigning people from one part of the business to another.
Jill Cotton - careers advice expert at recruitment site Glassdoor - said the findings are reflective of the wider labour market and added:
“Continued low employment rates coupled with record-high job vacancies and increasing numbers of economically inactive people means hiring is hard - and the skills of experienced HR talent are more in demand than ever. As a result, companies are having to get creative.”
Whilst using freelancers was found to be the employers' preferred method, the research showed that 41 per cent of businesses will look to encourage more internal mobility and career pathing within their organisations in the next 12 months.
Simon Lyle - Randstad RiseSmart's UK Managing Director - says that businesses are increasingly finding greater value in training their own employees for roles.
He stated:
"The investment in reskilling your employees is a better long-term bet. If you’re bringing in a freelancer or contractor for six months, not only is that expensive but when they leave, you lose that value. If you can create those skills amongst your existing workforce, you retain that value for a longer period. That’s what we’re seeing in the market at the moment – companies getting better at moving people internally, upskilling and redeployment.”
Of those polled, 61 per cent said that - compared to last year - their business had increased external hiring and 65 per cent stated that their business would continue to do this in the next 12 months.
