Recruitment is the biggest single challenge for companies in the North East say business leaders and many firms are carrying significant vacancies they can’t fill, according to a survey by a regional business group.
The poll of more than 100 business leaders by the Entrepreneurs’ Forum found that filling jobs is harder now than it was before the pandemic and the number of vacancies at each business has increased. 72% of respondents said recruitment is more difficult than pre-pandemic while 25% reported no change and 3% said recruitment had become easier.
More than three-quarters of regional companies (79%) are currently advertising job vacancies, with 19% having 10 or more open positions and 4% having 50 or more vacancies. Businesses with significant vacancies were operating in sectors such as IT, hospitality, engineering and retail.
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The companies polled expected to create more than 1,750 jobs in the year year, with almost 10% saying they could create more than 50 jobs each. Elaine Stroud, CEO of the Entrepreneurs’ Forum, said: “Despite the perceived lack of labour, it’s encouraging to see that Forum members have a lot of confidence and hope for the future, with many of them planning on creating a huge number of new jobs over the next 12 months. Regardless of their current vacancy situation, it was clear from the responses that virtually all of our members are taking steps to attract more potential employees.
“A common change being made by businesses is the introduction or continuation of ‘flexible’ working. However, this seems to be a new norm rather than something that makes businesses stand out to applicants.”
Skills shortages have been an issue for many firms for a number of years and the problem has been exacerbated by Brexit and the pandemic. Recent unemployment figures in the UK have shown more vacancies to be filled than people out of work.
In the Entrepreneurs’ Forum poll, 40% of respondents said they had increased their pay and benefits packages to incentivise applicants whilst 25% said they had turned to external agencies, including specialist recruiters. Companies had also taken steps to improve their brands through increasing their social media presence, setting up employee wellbeing policies and investing in staff development.
The Entrepreneurs’ Forum, which was set up in 2002 to help younger business leaders learn from more established executives and company owners, has around 300 members.
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