POSTED: June 11 2021
Service sector skills gap

Wages on the rise amid scramble for workers

The UK has seen ‘eye popping’ growth as the lockdown restrictions ease, but the surge in demand has left service sector firms struggling to find staff and forced to increase salaries as a result.

The latest PMI report shows payroll numbers have risen at the fastest pace since March 2015, with respondents citing a combination of new hires and the return of employees from furlough. However, many companies have reported difficulties with staff availability, and with labour in short supply, some companies are being forced to offer higher salaries.

Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, says a shortfall of talent is driving up pay. Businesses rushed to increase their operational capacity to meet the increase in demand, but have been left struggling to fill their job vacancies. As the pandemic has resulted in a marked shift in priorities, staff are more likely to move on to new opportunities, resulting in a potential skills gap in the sector.  This shortfall has meant the best candidates were increasingly in demand – and therefore demanding higher wages, contributing to the highest inflationary rise in business costs since 2008.

Increasing salaries is not the only way to attract and retain staff.

While salary is, of course, an important factor, priorities in the wake of the pandemic have changed. A recent survey from XpertHR found that 34% of working professionals would now prioritise the employee reward and benefits package on offer when looking for a role.

advo are an independent broker, offering unbiased advice with the needs of the client in mind. From taking out new employee benefits policies to reviewing your existing offering to ensure the best value for money, we can find the best fit for your needs. Contact us today for more information.

Original article here.