94% of employers foresee talent shortage issues in 2023 expansion plans

How to align occupational health support with workforce demographicsEmployee Benefits poll: The majority (94%) of organisations have planned on expanding their workforce in 2023, but said they foresee issues with talent shortages, according to an online survey among Employee Benefits readers.

Conversely, 3% were not going to increase their workforce, and were staffed correctly at the time, while 2% planned to redistribute talent internally. The same percentage said they were going to use a combination of recruitment and internal redistribution.

Meanwhile, no respondents intended to expand their workforce while foreseeing no talent shortage challenges.

Last week, BusinessLDN, Federation of Small Businesses London, London Chamber of Commerce and Industry, and Confederation of British Industry London released the results of a survey of more than 1,000 London business leaders and HR managers, finding that 77% of firms were reporting open vacancies, and of those, 65% are struggling to fill them.

The research also revealed that specialist, skilled and managerial jobs were the toughest to recruit. Some of the biggest challenges to recruitment included competition from other firms (40%), a lack of flexibility on offer (37%), and the job entailing anti-social hours (31%).

With most Employee Benefits readers fearing talent shortages, benefits to attract and retain staff are a higher priority than ever, while organisations are working to keep up with changing employee needs and demands.

Recent research from Bloomberg Intelligence found that 73% of London office workers would walk if their ability to work from home was removed, for example. For 64%, only a pay rise of 11% or higher would sway them, suggesting that inflation-busting pay rises and a commitment to flexibility and hybrid working are among the factors needed to deal with the ongoing talent crisis.

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Meanwhile, 45% of UK and US employees would consider ‘conscious quitting’ if they did not align with their employer’s values, with 35% saying they had already done so in the past, according to research by Paul Polman.