It was five years ago that the McKinsey Global Institute recognised the oncoming Talent War in their “Preparing for a new era of work” report.
This was supported by a KPMG study – “Rethinking Human Resources in a Changing World”, where 81% of executives surveyed said talent management was key to establishing a competitive edge over rivals.
Half a decade on, and this is an issue facing HR executives and hiring managers in the UK. They are acutely aware that securing talent is not easy and there are a number of reasons why.
Labour shortages – The British Chambers of Commerce research in January 2018 showed 71% of businesses in the service sectors have issues hiring the right workers. This rose to 75% in the manufacturing sector.
Brexit – The UK’s impending exit in March 2019 is having a huge impact on available workers, particularly from the continent. Several sectors have been hit by the departure of migrant workers, while the prospects of attracting workers from Europe has diminished.
Demand for Labour – The demand for labour remains high – and thus there remains competition for the best talent, but skills shortages amongst candidates continues to increase pressure. With unemployment less than 1.5m – there is a smaller pool in which to get talent.
Candidate power – Give the talent shortage, the brightest and best candidates hold all the cards and it is up to hiring managers to create the right package and environment to secure in-demand talent.
Seasonal spikes – Increased demands for low skilled workers in the summer, predominantly in agriculture, tourism and hospitality sectors, plus for the retail sector in winter impacts on the availability of workers for other sectors – particularly in lower skilled jobs.
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