subject: Are You Sure Your Business Is Not Facing Skills Shortage Situation? by:Jacqueline Howard [print this page] Skills shortage is a situation where there are insufficient numbers of qualified employees who are able to work for you. Even though you can afford to offer a higher salary to your employees than competitors, it doesn't mean that you are hiring more skilled employees. If you want to change the way you run your business, you have to try changing the way you manage your people first. It starts with how you recruit, train, embrace, promote and manage them.
At the moment, more and more countries are facing an aging workforce and declining birth rates. According to the Office for UK National Statistics in August 2008, more pensioners are living in the United Kingdom now than the population under the age of 16. Birth rates in the UK have risen in recent years but still are lower than 1970's figures. It's estimated that by 2030, the UK population will be 46% people aged 50 and over, increasing from 33 per cent in 2002. The combination of an aging workforce and declining birth rates mean that shortages of skills will arise. There'll be less people in the workforce, less population contribute to the economy, less labour in each sector of industry.
Other factors that increase the shortage of skills are:
- The rapid change and emergence of new technologies
- Industries with old technologies will change or die.
- The interests of job seekers
Often, "skill shortage job" are those which require experienced candidates with highly specialised skills. Employers often find it difficult, expensive and time consuming to train the right candidate; especially it's only for a short term project.
So, how do the above factors affect you, as an employer? The employers must find the right candidates, train them to the level of skills which is required by the job role, ensure they're efficient and competent enough, offer them a good salary package and find methods to retain them in your company. Of course, keep in mind that all these are worthless if your business is not making any progression and generating more profits.
The younger generation coming into the workforce have a different attitude towards work and their employers. They're less committed to staying with the same company and sometimes less motivated by money. They don't like doing the same work every day, want to have more personal time, be satisfied, happy and flexible towards work. Once they see better opportunities somewhere else, they are likely move.
To retain your workforce:
To keep hold of your employees, work on
Trust - Employees have to feel they're being trusted by their employer
Respected - feel they are making valuable contribution
Freedom of sharing and suggestions - they're free to share information and suggest new business ideas for the company. Employers can decide whether or not to accept the new idea, but it's important they listen to the suggestion.
Provide training/qualifications
Remuneration - motivation for employees
Finding the right candidate to work in your business:
- Avoid using the 3rd party recruitment agency. Instead, approach the candidate direct through your own organisation.
- Clearly define the company values and practice it in reality. Differentiate your company above your competitor
- Define the skills requirement and job role in details.
Want to be a better business employer?
- Gather feedback from your employees
- Communicate and listen to each employee about their job role and performance. Give your feedback and suggestions after listening to them.
- Provide free training for employees, if they feel needed or would like to progress further from the present job position.
- Ensure your business is ethical and honest.
- Define the objective and vision for your company and communicate this.
- Provide challenging work for your employees, to enable them to grow from their current positions.
- Managers should show respect and set a good example to the rest of the workforce
In conclusion, you can find skilled employees who'll be loyal to your firm. As long as you understood them and make changes to the way your organisation treats them. Otherwise, it's going to be harder for you to recruit and retain them. Employees are the greatest asset of the company and if you fail on them, you fail your business!
About the author
This article has been published by Jacqueline Howard. If you are searching for Hemel Accountants or Stockport Accountants, come and discuss with us. We provide professional accountancy and taxation service. For more information, visit us at http://www.daviesmclennon.co.uk or http://www.daviesmclennon.com
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