The UK labour crisis refers to the current state of the British job market, which is facing a number of challenges and uncertainties. The crisis is characterised by high levels of unemployment, particularly among younger workers, as well as a shortage of skilled workers in certain sectors. Furthermore, there are concerns about job insecurity, low wages, and poor working conditions, all of which contribute to a sense of dissatisfaction among many workers. These factors are making it more difficult for businesses to attract and retain top talent, and they are contributing to a general sense of economic uncertainty in the UK.
The UK labour market saw unemployment rates fall to a near-historic low of 3.8%, while job vacancies reached a record high of approximately 1.3 million. What does this mean for employers? Top talent is becoming increasingly difficult to find, with organisations facing stiff competition to attract and retain a shrinking pool of candidates. This article will discuss the current state of the UK labour market and explain what employers' talent attraction strategy should look like in 2023 to combat these conditions.
The State of the UK Talent Market
Between April and June 2022, the number of job openings in the UK exceeded the overall unemployment rate. In November 2022, 13.3% of businesses reported labour shortages. Certain industries, such as accommodation and food services (35%), construction (21%), and health and social work (19%), experienced significant skills shortages. However, the estimated number of vacancies fell by 51,000 to 1.124 million by February 2023. This pointed to a strong recovery in the UK labour market following the removal of Covid-19 restrictions. However, another trend from the pandemic has persisted — the quitting epidemic.
In early 2021, a large number of workers began resigning in a movement dubbed the Great Resignation. Many factors contributed to this, ranging from safety concerns to changes in personal and professional goals brought about by the pandemic. Many people expected this pattern to end as the effects of the outbreak subsided, but many workers are still resigning or plan to resign. In a survey of 1,000 UK workers, nearly one-third said they plan to quit their job soon. The data clearly illustrates that in today's competitive labour market, employers require an effective strategy for attracting and retaining top talent.
How to Attract Talent
An effective talent attraction strategy is critical in a tight talent market, where qualified candidates are in high demand and employers face fierce competition. Failure to keep up with a changing labour market, particularly with the digital revolution, is one of the most significant barriers to successful talent attraction. Too much emphasis on legacy talent pools, combined with poor job distribution to legacy channels, results in campaigns with limited reach and diversity. Such campaigns are unlikely to provide organisations with the people they require to expand their businesses, especially during a labour crisis. The key to attracting talent is to target digital native job seekers where they’re most at home. Employers need to embrace the internet and social media as both a form of talent attraction and a platform to boost their employer brand.
A strong employer brand is critical to talent attraction and retention. To attract the right candidates, businesses must demonstrate their values, purpose, and distinguishing qualities. Furthermore, employing a multichannel recruitment approach, utilising a company website, social media and traditional job boards, means organisations can reach the widest possible pool of talent. That means expanding their reach beyond active job seekers on the lookout for a new job, to passive talent. This is an important demographic because many excellent candidates are dissatisfied with their jobs, and nearly half are open to changing jobs at any time. This is in addition to the 29% of UK workers who are currently considering changing jobs in the near future. A future-proof strategy for attracting the best candidates is an effective multichannel distribution network that focuses on delivering engaging content to the target audience.
How to Retain Talent
Employers are offering "some of the highest pay awards in recent history," according to the CIPD, as they "strive to attract and retain staff." Particularly in the private sector, salary expectations have hit a record high. However, with the cost-of-living crisis and the threat of a recession looming, this wage growth cannot continue indefinitely. Other benefits, particularly those that help reduce the cost of housing, travel, and childcare, may be critical to retaining talent. Furthermore, talent retention strategies should include 'upskilling.' This refers to investing in an employee's professional development in order to keep them from looking for other opportunities.
Retaining talent is crucial for any employer. Companies with a high employee turnover rate and a revolving door of employees may see a decrease in productivity, efficiency, and company culture. Retaining employees also saves money, as the cost of entry-level position turnover is estimated to be 50% of the annual salary. This is a significant cost that can be avoided through data-driven hiring. Companies can focus their efforts on attracting the best candidates for their specific needs by using data to identify the most effective recruiting sources and channels. This can lead to more successful hires who are a good fit for the company culture and are more likely to stay with the company long-term. Both monetary and non-monetary benefits, combined with a positive work environment, strong company culture and a focus on upskilling, can assist employers in retaining top talent.
inploi’s Solution to the Labour Crisis
inploi’s Attract module is specifically designed to help employers reach the future of their workforce, wherever they are. inploi’s distribution network offers immediate exposure to multiple audiences and millions of potential job seekers with just one connection. This encompasses a broad range of top-performing channels, including Google for Jobs, TikTok, Indeed and FindaJob to name a few. Perfect data markup, direct integrations, and firm partnerships mean jobs get listed quickly and indexed properly.
With inploi’s team at their disposal, offering expert design, execution and optimisation of bespoke campaigns to deliver employers the candidates they need. inploi has partnered with top UK employers including Butlin’s, Haven, and Nobu Hotels. Running market-leading targeted recruitment campaigns to target top talent and deliver impressive results.
If you’re ready to supercharge your talent attraction process and engage the future of the workforce, get in touch with inploi today.