How the UK Skills Shortage Will Boost Flexible Working

War on Talent Continues as Top Talent Demand Flexible Working

August 2014 saw a record drop in the number of candidates applying for permanent and full-time jobs, a recent report commissioned by the Bank of Scotland has revealed

The Bank of Scotland chief economist Donald MacRae consolidates the report’s findings: ‘There was a record drop in people available for jobs and growing evidence of strong growth in pay, confirming the tightening of the jobs market’. However, this drop has been countered by a marked increase in individuals applying for short-term and part-time roles, confirming that the Scottish jobs market continues to go “from strength to strength”.

The change may be interpreted as a result of the skills shortage currently affecting the UK. A dearth of skilled candidates means that certain sectors continue to struggle to fill full-time positions, including the medical and care sectors, IT and computing and the engineering sector.

“A huge number of skilled candidates have been excluded from the job market because of a lack of part-time roles and flexible working positions. The ongoing skills shortage means that these professionals are highly sought-after, and are in a strong position to dictate their salaries and working conditions, including work schedules’. Flexiworkforce CEO Tracey Eker confirms.

Nevertheless, the growth in flexible, part-time and short contract positions may also be seen as a boon for employers seeking to broaden their talent pool by increasing their access talented candidates.

By hiring candidates on a flexible basis, companies can effectively get the skills that their business needs, for the money they can afford, something especially vital for emerging SMEs, many of whom rely on contractual workers. In particular, engineering and construction saw a marked increase in temporary job openings. This suggests that this rise modern flexible working has come about as a mutually beneficial option, resulting from the convergence in the needs of employees and businesses.

The skills shortage shows no sign of stopping, meaning that level of bargaining power that workers have to negotiate their working conditions is only set to increase. As the war for talent rages on, it is likely that flexibility will be a major factor in determine which companies ultimately survive, thrive and fail.

‘The last bastion of differentiation in the fight for mind share and market share for a business is its people. Yet hiring, retaining and motivating the best talent is no easy task in an age where loyalty to one job for life, or even five years, is starting to sound prehistoric’. Eker states.

‘Developing a flexible company culture that will help attract, retain and motivate the best employees to achieve amazing results is essential’.

Click here for more information on how you can hire the best candidates for your business.

The Importance of Employee Engagement

Are You doing enough to motivate your workforce?

Arguably, the biggest single threat to staff retention and productivity within the workplace is the issue of employee engagement. Employee engagement may be defined as a way of working whereby employees are committed to their organisation’s goals and values and motivated to contribute to the overall success of the business, while at the same time being able to enhance their own sense of accomplishment and self-worth.

Employee engagement is vital to the successful running of an organisation in two different ways:

1. Employee engagement improves employee attitude, meaning that the employee will feel a sense of loyalty and pride at being part of the organisation, as a result of the support and positive reinforcement they receive.
2. Employee engagement will improve the employee’s actions, meaning their output and productivity. This is because the engaged worker feels a sense of accomplishment in completing a task well, knowing that their actions will be appreciated and appropriately rewarded by their employer.

There is evidence to suggest that failure to properly engage employees may have a detrimental effect upon company growth. Studies have shown that absenteeism is 37% worse for organisations with disengaged workers, while there is a 4% increase in safety incidents within disengaged workplaces. Furthermore, it has been discovered that productivity plummets by 21% when workers are not properly engaged.

It’s clear, therefore, that proper employee engagement is vital to maintenance and growth of a business, and must be an integral part of your long-term strategy. Here is a brief guide to engaging your employees and securing the growth of your business.

 Do not confuse engagement with short-term happiness

You might offer unlimited holidays, free beer on Fridays and a host of other benefits designed to instil a relaxed, positive working culture. However, this will count for nothing unless your employees are properly engaged. As a result, is important to consider what will really make your employees feel more motivated and fulfilled, rather than hoping that flexible benefits will be enough to keep your staff feeling motivated and keen to improve.

Think CSR

Corporate social responsibility is the way forward, and is increasingly becoming the main way in which companies attract and retain new candidates. This is because the millennial generation are overwhelmingly preoccupied with CSR. 80% of a sample of 1,800 13-25 year olds claimed that their ideal workplace would be one which cares about how it impacts and contributes to society. The majority of this claimed they would refuse to work an ‘irresponsible’ organisation.

One way of improving your business’s CSR might be the introduction of ‘flex-days’ in which time could be devoted to helping out at local charities or projects within the wider community. Building your company’s social responsibility will be vital to harnessing the talented candidates needed for it to grow and thrive.

Make the most of positivity and reinforcement.

Psychologists claim that self-determination is vital for true employee engagement, meaning that staff must feel personally invested in the business in order to deliver maximum productivity and favourable results. How to instil a sense of self-determination in your staff? One way might be to encourage your employees to choose their own projects to work on. By allotting time each week for your staff to work on their own projects autonomously, you will allow them to feel increased pride in their work, and this will contribute to more employee engagement overall.

Also highly important is adequate support and feedback, which will allow your employees to feel that their results are being measured and dully rewarded, which in the long-term will aid staff retention.

Flexibility and Trust will allow your employees to work like adults

Fostering a culture of trust within your workplace is key to truly engaged employees. Employees who are trusted to work to a high standard without constant supervision will deliver optimum results. Employees who are chained to their desk and not trusted to work independently will have less motivation to prove their worth! Studies have proven that flexibility at work makes for increased productivity, whereas ridged ‘presenteeism’ stifles creativity. In short, accommodating the need for flexibility in your business will lead to genuine engagement throughout your organisation.

How Developing Companies Can Find the Skilled Workers They Need

It can be tough for young companies and start-ups to gain the skilled employees that they need in order to fuel their growing business. A common concern of directors of start-ups is that larger and more established companies soak up all the available talent, leaving little for small developing firms. This is, undoubtedly, an issue, but one that can be overcome with the implementation of a good HR strategy, including the nurturing of a culture of flexibility!

Make Flexibility a Core Feature of Your Business

One advantage that start-ups have over established companies is that arguably, it is easier to implement and manage flexible working within smaller businesses, in that it is easier to keep track of schedules and workload of a smaller team. There is much evidence to show that priorities are shifting in favour of a strong work/life balance, especially amongst millennials. Make flexible working integral to your business now and reap the benefits of an abundant supply of enthusiastic, skilled workers!

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Market Your Unique Vision to Potential Employers

Make your vision for your company appealing by showing the human side of your firm. Arguably, this is far easier when your company is relatively new and localised! Tell the story of your business, including how you got started, and what drives you and your employers to consistently deliver fantastic results. Applicants for jobs will be inspired by your ambitions and will want to contribute.

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Showcase the benefits of working for a start-up

There are many positive aspects of working for start-up firms. For one, start-up employees are likely to engage with their company on a deeper level by fulfilling many diverse roles. This can only be beneficial for employees, as a wider range of experience enables a worker to expand on their skillset. Furthermore, as the work involved often changes day to day, working for a start-up does not present the same monotonous grind that working for a larger company often does. Emphasise the role of creativity, and the need for creative thinking in order to boost interest in your firm

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Good Luck, Start-Ups!