Survey: Candidate shortages slowing productivity – retention is key

Howden encourages HR experts to implement a �retention� drive in 2022

A recent survey of more than 160 senior Human Resources (HR) professionals � representing hundreds of thousands of both domestic and global workers � suggests that the continuing acute shortage of suitable employment candidates may be damaging both output and productivity.

The research, undertaken by employee benefits consultancy Howden Employee Benefits & Wellbeing (Howden) in December, asked HR experts for their views on the recruitment process.

More than 4 in every 5 employers (81%) suggested there were either few suitable applicants for vacancies (68%), or no candidates available at all (13%).� Just 12% of employers were not currently experiencing any recruitment challenges.

The survey also suggests that the currently limited supply of potential employment candidates may also be damaging output and productivity.

More than a third (36%) of employer respondents currently expect a vacant position to remain unfilled for between 3 and 6 months, with 1 in every 10 experiencing wait times of up to 9 months.

And these delays are exacerbated further by the time it takes a new joiner to achieve their optimum level of output in a new job role.� Fewer than 1 in every 10 (7%) employers expect a new employee to reach their peak output in the first three months of employment, with another 56% of respondents suggesting that it may take between 6 and 12 months for that level to be achieved.� And a small number of respondents (2%) expect that maximum output will not be delivered until a year or more in post has been achieved.

Commenting on these findings Steve Herbert, Head of Benefits Strategy at Howden Employee Benefits & Wellbeing said:

�After two years of on-off pandemic restrictions employers across the nation are keen to return to both business as usual and maximum output.� Yet Howden�s findings suggest that the candidate shortages being experienced in so many sectors represent a very real productivity headwind for UK employers at this time.

“In particular, we would highlight that a few unfortunate employers may suffer the double-whammy of lengthy waiting times to secure the right candidate, followed by an equally long gestation period until that much needed optimum productivity can finally be delivered.� And at any point in this process the employee might leave, placing the employer back at the start of the recruitment cycle once again.�

In view of these findings Howden suggest that retaining existing employee talent should be a key focus for employers in 2022.� Yet their survey results suggest that fewer than 1 in 4 employers (22%) are currently looking to implement any form of staff retention drive.

Herbert concluded;

�A retention drive should be a high priority for many more businesses this year.� The focus of the exercise should be to highlight the uncertainties of leaving for a new job elsewhere, whilst also strongly reminding employees of the benefits of continuing in their current employment.

“In particular we would encourage employers to really promote those important � but so often overlooked or poorly communicated � employee benefits offerings.�

“Employer-funded benefits such as Group Life Assurance, Group Income Protection, and Group Private Medical Insurance are now even more important following a worldwide health crisis.�

“It follows that workers may be far less inclined to change employers once they better understand that such a move may result in a break in the cover provided, or even the loss of these valuable protections altogether.

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Howden Employee Benefits & Wellbeing is able to assist employers of all sizes with the assessment, placement, and communication of a wide range of important employee benefits.

The survey took place during the Howden Employment Webinar on the 9^th December 2021.� For full survey results please scroll down.� ��

Full Survey Results:

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Question:� �Are you planning an employee �retention� drive in response to candidate shortages?�

Yes; we have already undertaken a retention drive:�� 9%

Yes; we will shortly be undertaking a retention drive:�� 13%

It�s possible; but nothing planned as yet:�� 50%

No:�� 19%

I don�t know:�� 9%

Question:� �Has a lack of suitable employment candidates been an issue for your organisation in recent months?�

Yes; there are no suitable candidates available:�� 13%

Yes; there are only a few suitable candidates available:�� 68%

No; we are not experiencing any candidate shortages:�� 12%

N/A; we have not recruited this year:�� 3%

I don�t know:�� 3%

Question:� �How long is it currently taking your organisation to recruit for vacant positions?�

Between 6 � 9 months (or longer):�� 10%

Between 3 � 6 months:�� 36%

Between 1 � 3 months:�� 42%

Less than a month:�� 2%

N/A; we have not recruited this year:�� 4%

I don�t know:�� 7%

Question:� �How long does it typically take a new employee in your organisation to reach �optimal productivity�?�

A year or more:�� 2%

6 � 12 months:�� 56%

3 � 6 months:�� 33%

1 � 3 months:�� 7%

Less than a month:�� 0%

I don�t know:�� 2%

The survey took place at The Howden Employment Webinar on 9^th December 2021 amongst an audience of 0ver 160 senior HR, Finance, and Payroll professionals from a variety of Private, Public and Third Sector organisations.

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For more information in Howden Employee Benefits & Wellbeing visit: www.howdengroup.com/uk-en/cover/employee-benefits-and-wellbeing-consulting