Skill shortage and low salaries mean it is difficult to recruit

2nd May 2012

This week we read an article reported on Personneltoday that looked at the recruiting difficulties based on skill shortages and low salaries. We have summarised below.

Despite the relatively high unemployment rate, many UK companies are still finding it difficult to recruit and hire candidates for management positions. Once hired, many companies are also finding it extremely difficult to retain the employees given managerial roles. More specifically, according to the National Management Survey conducted for 2012, 59% of companies reported difficulty in recruiting suitable managers, and over half of the surveyed companies admitted that about 1 in every 10 of their managers had resigned within the past year.

The issues surrounding employing managers are two-fold, with problems presented both by the candidates themselves and the employers as well. Employers complain that there are not enough qualified candidates who apply for the positions; not enough workers with specialised management-related skills are available. At the same time, those hired in management roles complain that companies are not offering high enough salaries and appropriate benefit packages for their employees. Even though employees in management received an average basic pay raise of 3.1% in the past year, this slight difference in salary is still considered to be extremely minimal.

Ultimately, however, it will grow increasingly crucial that companies are able to recruit, hire, and maintain qualified candidates for management positions. An estimated 544,000 new managers will be needed in the UK by the year 2020, and the role of a manager in a company cannot be overlooked. Because of this, companies are encouraged to focus on providing their current managers with appropriate salaries and benefits. If funding is not currently available to do this, then organizations are highly recommended to consider offering non-monetary benefits to managers, as a means of improving the managerial sustainment rate.

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