Candidate shortages are limiting productivity, according to a survey, and retaining employees is crucial

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According to a recent study of more than 160 top Human Resources (HR) experts – who represent hundreds of thousands of domestic and international workers – the ongoing acute scarcity of good job candidates is threatening the efficiency and productivity of the company.

HR specialists were polled in December by employee benefits firm Howden Employee Benefits & Wellbeing.

More than four out of every five companies (81%) stated that there were either few appropriate applicants for openings (68%) or no candidates available at all (71%) for open positions (13 percent ). Only 12% of firms said they were not having any difficulties with hiring.

The poll also reveals that the present scarcity of qualified job seekers may be affecting output and productivity.

More than a third (36%) of employers expect a vacant post to be unfilled for three to six months, with one out of every ten seeing wait durations of up to nine months.

These delays are worsened even more by the time it takes a new hire to reach their maximum productivity in a new job capacity. Employers expect a new employee to attain their peak production in the first three months of work for less than one out of every ten (7 percent), with another 56 percent estimating it will take between six and twelve months. A tiny percentage of respondents (2%) believe that maximal productivity will not be delivered until after a year or longer in position.

Steve Herbert, Head of Benefits Strategy at Howden Employee Benefits & Wellbeing, commented on the findings, saying:

“After two years of on-again, off-again pandemic restrictions, companies throughout the country are eager to resume normal operations and maximise productivity.” However, Howden’s results imply that the current candidate shortages in so many industries are posing a serious productivity challenge for UK companies.

“In particular, we’d like to point out that a few unfortunate companies may face the double whammy of extended wait periods to find the appropriate applicant, followed by an equally long time period before that much-needed optimum productivity can finally be provided.” And the employee might leave at any moment during the process, putting the employer back at the beginning of the recruiting cycle.”

In light of these findings, Howden suggests that in 2022, firms should prioritise keeping existing employee talent. Despite this, the findings of their poll show that only about one-quarter of businesses (22 percent) are now planning to create any kind of employee retention strategy.

“This year, many more organisations should make retention a top focus. The goal of the exercise should be to emphasise the risks of leaving for a new job while simultaneously emphasising the benefits of staying in their existing one.

“We would especially encourage businesses to promote such vital – but frequently disregarded or poorly conveyed – employee perk programmes.”

“Employer-sponsored benefits like Group Life Assurance, Group Income Protection, and Group Private Medical Insurance have become even more crucial as a result of the global health crisis.’’

“As a result, workers may be less likely to switch companies once they realise that doing so may result in a lapse in coverage, or perhaps the loss of these crucial safeguards entirely.”

See how HealthBoxHR can help your business retain staff with our Performance Management as well as manage the recruitment process smoothly with our Recruitment feature. 

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