Research by NatWest Rapid Cash has found 85 per cent of recruiters believe businesses are struggling to attract the people they need. This challenge is starkest in Greater London (92 per cent of recruiters), the East of England (90 per cent) and Wales (93 per cent). The research has also identified that the shortage of candidates is particularly affecting the healthcare, IT and technology sectors.
Businesses across the UK are reporting rising operational costs. Indeed, 44 per cent of recruitment firms say they are struggling with increasing overheads. The resulting squeeze on cash flow means that offering higher wages cannot be the sole way for companies to fill their vacancies. Employers and recruiters need to find new ways to attract (and retain) the best candidates.
Health and wellbeing benefits have always been valued by employees. But the post-pandemic shift towards hybrid working has increased the focus on work that fits around people’s lives, not the other way around.
Earlier this month more than 3,300 workers at 70 UK companies started working a four-day week with no loss of pay. The trial is based around a 100:80:100 model – 100 per cent of pay for 80 per cent of the time, in exchange for a commitment to maintain 100 per cent productivity.
The report’s researchers asked recruiters for their views on this new working pattern:
• 79 per cent of recruiters think the four-day working week will become the norm before 2030
• 86 per cent of recruiters think the four-day working week is a good thing (employers measured slightly less at 76 per cent)
• The top three pros of the four-day working week for recruiters are: (1) happier employees – 80 per cent; (2) more flexibility for staff – 73 per cent and (3) increased employee retention – 56 per cent
But the report has also identified potential issues for employers, as well as a five-year timeframe for a four-day working week to substantially transform the job market:
• The top three cons of the four-day working week for recruiters are: (1) having to find cover for workload – 44 per cent; (2) reduced hours might reduce work output – 43 per cent and (3) compression could cost money – 33 per cent
• Only 21 per cent of recruiters believe that the four-day working week will change the job market considerably in the next year, but this jumps to 61 per cent if we fast-forward five years
“Recruiters clearly see the four-day working week and personal wellbeing gaining popularity among employees,” commented Natalie Kerr, chief commercial director at NatWest Rapid Cash. “But many businesses are reluctant to provide a better work/life balance due to increased operational costs.
“At NatWest Rapid Cash, we believe the most effective way for SME employers, and recruiters, to meet staffing challenges is to strengthen their working capital. Cashflow is key when it comes not only to staffing but also to having the flexibility to adopt new models of working, and to make the most of growth opportunities.
The post-Brexit landscape, pandemic, conflict in Ukraine and subsequent cost-of-living crisis have all led to operational challenges for SME businesses. And with a four-day working week predicted to have a significant impact on the job market, it will be the companies with the finances to embrace change that will achieve their business goals.
