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Staff shortages are spilling over into the road transport, agriculture and hospitality sectors in almost every sector of the economy, putting ‘severe pressure’ on midsize businesses across the UK , warned a new investigation.
More than a quarter of the 500 companies surveyed said the understaffing was putting pressure on their ability to operate at normal levels, with reduced inventory – due to the resulting supply chain disruption – hampering to their activity.
While some companies had considered cutting production, others were planning to raise prices, raising concerns about rising inflation as the Christmas trading season approached.
Almost a fifth said they were increasing wages to attract new employees, while others were introducing additional benefits to attract workers.
But the report, released by accounting and consulting firm BDO, said the ripple effects for consumers could be “significant,” with nearly a third of companies saying prices are expected to rise over the course of the year. the next three to six months to compensate. for the disturbance.
More than a third of the companies surveyed said they had also reduced the types of products and services offered, and another third planned to do the same in the coming month, unless the situation drastically improved. . A similar proportion expect inventory ranges to be affected in the long run.
Companies blamed the pandemic and Brexit for the shortage of overseas workers, with 38% saying the lack of regional talent was hurting their ability to recruit needed staff. “Brexit, global supply chain issues and the long tail of Covid-19 have created a perfect storm for UK businesses,” said Ed Dwan, BDO partner.
“After overcoming the challenges of the pandemic and hoping for some respite, businesses found themselves facing greater disruption, with those in almost every industry reporting staff shortages.
“This is an era of upheaval, and the challenges facing UK intermediaries – the engine of the UK economy – point to a long way to go,” Dwan said.
The survey exposes the challenges facing all levels of UK business. Truck driver shortages have already led to fuel shortages across the country, while large companies such as Tesco warned last week that the labor shortage could lead to empty supermarket shelves and empty shelves. panic shopping as Christmas approaches, unless the government relaxes immigration rules.
Prime Minister Boris Johnson’s government has since introduced emergency visas that will allow 300 potential fuel drivers to arrive immediately and stay until the end of March, and allow another 4,700 potential food transport drivers to arrive at from the end of October and leave by the end of February.
Elsewhere, the hospitality sector is also suffering from a shortage of workers, with one in six positions currently vacant, according to the latest business confidence survey from consulting firm CGA and technology services firm Fourth.
Only 18% of 200 companies in the restaurant, pub and bar industries said they were confident they would be able to recruit and retain the staff needed to run their businesses. This is a dramatic drop from the 67% who felt secure about their talent prospects just three months ago.
About two-thirds said they plan to hire staff at a higher rate than usual this year and are already struggling to cope with absences, reporting that on average around 6% of staff are currently isolated due to continued Covid risks.
The shortage is forcing companies to redouble their efforts to attract and retain staff, with three-quarters saying they have offered better pay, while two-thirds have “tried to cultivate the right work culture” to retain workers. Bosses who raised salaries said they increased salaries by 11% on average for current staff and 13% for new hires.
The report says higher wages would result in additional costs for the hospitality industry, which was already facing rising costs for food, drink, supplies and utilities.
One of CGA’s directors, Karl Chessell, said the numbers illustrated the “grand scale” of the hospitality recruitment and retention crisis, and called for government support.
“Thousands of businesses are now sorely understaffed, while many of those with enough manpower are struggling to keep it,” Chessell said. “Gaps in the front and back of the house and rapidly rising labor costs threaten to derail the industry’s recovery, and sustained and targeted government support is now urgently needed to ensure that the industry is in good shape. tackle the problem. “
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