One of the biggest challenges facing SMEs is always finding the right staff to add to the workforce. It’s a perennial issue and something that businesses in every sector deal with. The right employee can add enormous value to a business, whilst the wrong choice can have serious impacts on smaller businesses.
With new figures revealing a paucity of workers, with Brexit further impacting the numbers, what does this all mean for SMEs?
Employment is High
Employment numbers in the UK currently stand at their highest for nearly half a century – which is when records began, so this high is indeed a historic one. This is great in general terms for the economy and the workforce, but it also leaves SMEs with a much smaller candidate pool to source talent from.
34 percent of SME bosses revealed that they simply cannot find the right people to fill the vacancies they have. When surveyed, the main reasons bosses gave for this struggle were these: perceived lack of job security, absence of name recognition and a lack of perks to offer in contrast to bigger companies. Many bosses also pointed to the Brexit factor.
Brexit
The Office of National Statistics has borne this out. Their figures show that the European workforce in Britain has declined by 28,000 in a year. For SME employers, this means a scarcity of European talent, many of whom have the skills they need.
It’s a complex process, but there are concrete factors playing into the leaving of European nationals. The UK economy is recovering in fits and bursts, but not on a solid upward trajectory. At the same time, economic recovery in various EU nations is making the prospect of home seem much sweeter to many European workers in Britain. Playing into this is the mental aspect of Brexit. Many European nationals have found the political climate very different to when they first arrived in the UK and, as such, feel more comfortable returning to their home countries or other EU nations.
A Tightening Labour Market
With more people in work than there has been for 46 years and a loss of European candidates, SMEs are facing a labour market that simply doesn’t have the workers to give.
Access to skilled, talented employees is vital for SMEs to grow and thrive, so where are they going to get the manpower they need? One solution is government reform. Changes to the Tier 2 visa would enable more SMEs to find the talent they need internationally. Aside from this solution, SMEs are going to have to get creative and proactive in finding the right candidates, emphasising their future potential and current benefits.