UK firms turn to older workers and returners as skills gaps and shrinking talent pools bite
Two fifths of UK employers (40%) are actively hiring people returning from a career break, while around a third are actively hiring (31%) – or looking to retain (37%) – older workers, new research from independent consultancy Barnett Waddingham reveals.
The findings reflect an environment of mounting pressures both within, and outside, of businesses. Internally, a growing number of people are delaying their retirement and choosing to work for longer; earlier this year nearly two fifths (36%) of employees said they had already, or were considering delaying their retirement because they wanted to continue working, or due to financial reasons (34%).
At the same time, employers are concerned about staff lacking the skills they need to work (77%), rising mental health challenges among employees (73%), and persistent long-term sickness (68%).
Externally, talent pipelines are under strain. As newly implemented immigration policies came into effect earlier this year, reducing the availability of jobs eligible for Skilled Worker visa sponsorship, two thirds (64%) are worried about the shrinking availability of overseas talent. Meanwhile, declining birthrates and other factors impacting the way that especially younger workers approach employment, have seen three in five (62%) employers concerned about the future availability of domestic talent.
Employers are increasingly resorting to retention strategies to minimise the organisational risk associated with these pressures. In the past year, 84% have increased the amount they pay their staff, 81% their investment in their values and purpose, while 79% are increasing the amount of training they offer mid- and senior-level staff.
While one in six (16%) expect they’ll lose employees due to visa and immigration changes, 45% offer visa sponsorship and aren’t planning to stop, and 39% are increasing salaries to keep or attract skilled overseas workers.
Julia Turney, partner and head of platform and benefits, Barnett Waddingham: “The labour market has bared its teeth yet again – bringing some new, and some familiar, challenges for businesses to contend with when tackling their balance sheets.
“Skills gaps, sickness, a shortage of talent and tightening regulations are all colliding to squeeze employers from every angle. But businesses aren’t standing still: they’re investing in their people and looking to older workers and returners to bridge the gaps.
“But as the makeup of their workforce continues to shift, data and analysis will be the key differentiator. Older workers, for example, bring with them a wealth of experience and knowledge that is hugely advantageous to a business, but their needs and wants are notably different from those of younger employees. Understanding these workforce nuances will allow firms to target investment effectively and ultimately retain talent while minimising risk.”