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CAN WE FIX IT? HOW TO TACKLE THE UK CONSTRUCTION SKILLS GAP

Can we fix it? How to tackle the UK construction skills gap.

2021 was a difficult year for many industries in the UK, with hopes high but recovery uncertain. The construction sector was no exception.

Alongside various lockdowns and nationwide skills shortages, firms were also at the mercy of a fuel crisis, the implications of ‘Brexit’, delays at major UK ports, price hikes on materials and a scarcity of HGV drivers.   

Following a turbulent twelve months, Mike McNally, Construction & Property Director for Hays Talent Solutions, reflects on the current state of the sector and explores how organisations can tackle the problems that lie ahead. 

A Brief Recap

For many construction companies, the year got off to a false start as sites were forced to close once again in line with tighter coronavirus restrictions. Where organisations were permitted to continue operations, shortages in many essential materials caused delays. Timber, steel, roof tiles and bricks were all in short supply as we entered the New Year. 

As we headed into Spring, cement and electronics joined the long list of materials in demand, with an ominous warning from the Construction Leadership Council that the materials shortage looked ‘set to continue’

The move towards Level 4 of the coronavirus roadmap instilled some confidence back into the industry, with output rising a healthy 5.1% in September, according to the Office for National Statistics. 

By the summer, it was not just materials in short supply. As order books grew, the volume of available workers rapidly declined. 

Already under pressure due to an ageing workforce, fears of an acute labour shortage worsened as the EU Settlement scheme deadline prompted an ‘exodus’ of workers. 

Compounding the crisis was a wider workforce trend, instigated by the pandemic, towards hybrid and remote working. As a rising number of prospective employees dictated how, when and where they worked, the demands of the construction industry made it difficult for the sector to keep pace. 

The result was a ‘waterfall’ in job vacancies. Data from the Office for National Statistics indicated that 48,000 jobs were unfilled across the construction sector in the period from August to October 2021, marking the highest volume in over 20 years.  

While the statistics fell slightly as 2021 drew to a close (43,000 vacancies were recorded in the three months to the end of November and 42,000 to the end of December), demand continued to drastically outweigh the supply of readily available labour.  

Looking ahead to 2022

The skills shortage is certainly the most pressing issue facing the sector as we head into 2022, a challenge shared by the experts at Hays Specialist Recruitment.  

Ian Higgins, Client Engagement Director for Construction and Property at Hays UK stated:  

“There is a notable increase in the number of vacancies registered and the volume of candidates registering to look for new roles. The issue that recruiters across the UK will be facing is a struggle to keep pace with demand amidst a shortage of specialist skills and a rise in candidate confidence. Here at Hays, for example, we had 50% more permanent roles registered in the six months from July-December 2021, compared to the same period in the previous year.  

Compared to January 2021, we are arranging 15% more interviews for permanent roles. This is indicative not only of the general uptick in activity across the sector, but also the growth in client confidence, as organisations once again look to shape their long-term workforce strategies with our support.”   

Attracting and retaining talent in 2022 sits firmly at the top of most organisational agendas. That means that finding innovative ways to engage with both new and existing talent should be at the core of any sustainable workforce strategy.  

Filling the UK's construction skills

With the chronic skills shortage labelled a ‘ticking time bomb’, companies must consider innovative recruitment and workforce strategies to avoid disaster.  

Looking far and wide 

There is an urgent need to source and train talent across a broader demographic to help plug the skills gap. Social value initiatives could provide a much-needed remedy, assisting many underrepresented groups with opportunities for meaningful employment.  

For example, from July to September 2021, an estimated 689,000 young people aged 16-24 were not in work, education or training, according to the Office for National Statistics.  

As part of the ‘Hays Helps’ initiative, we’ve forged partnerships between valued clients and progressive charities to support the employability of disadvantaged groups, including young adults. Recently, this has included a collaboration between Hays, End Youth Homelessness and St Basils to source roles for Tarmac, a leading construction solutions business. 

Looking to ‘Generation Z’ for your next hire not only supports a reduction in youth unemployment rates, but can also assist your organisation in building a strong Early Careers pipeline. 

Turning to Tech  

In line with many other industries, the construction sector has been forced to adopt new technologies to permit the continuation of projects amid the COVID-19 crisis.  

Aside from the impact of AI in making the workplace safer and more efficient, there is ‘optimism’ surrounding the impact of digital innovation on the skills gap. For example, the rising demand for novel skills such as drone piloting is hoped to improve diversity within the industry, with technology enabling ‘more roles for people with disabilities’.  

In response, hiring managers must adapt their recruitment methods to tap into these emerging talent pools. Locating these individuals will present new challenges, but an agile workforce solutions provider can provide the necessary data to help you source and attract the right talent, at the right time.  

A shift in mindset 

To tackle not only the immediate skills shortage, but to also attract and retain the talent of the tomorrow, age-old perceptions of the industry must be overturned. Using the momentum generated by widespread technological innovations and ongoing commitments to diversity, equity and inclusion, the sector must rebuild its image as a progressive and exciting industry in which to work. 

While flexible working has become a staple for much of the UK workforce since the onset of the pandemic, the construction industry has found additional obstacles restricting its adoption of this new way of working.  

Research suggests that the flexible work policies instigated by the NHS could set a ‘good precedent’ for construction, with both industries requiring that much of the work is completed on location. Both employers and employees will need to reframe their understanding of flexible working to suit the industry. For construction, it may mean starting earlier or finishing later to accommodate the commitments of workers.  

While it requires some innovative thinking and ‘full-team commitment’, flexible working is key to making the industry more attractive to women. With just 16% of the workforce identifying as female, this hugely underrepresented group offer a promising solution to the skills gap.  

As employees in other sectors continue to benefit from increased flexibility in their working patterns, it may be time for the construction industry to ‘clock out’ on rigid shift patterns.  

Time for self-reflection  

Candidates are bringing a different set of expectations and behaviours to their search for a new role. Opportunities for learning and development, employee wellbeing and sustainability credentials are increasingly topping the list of priorities.  

To stand out from the crowd in a tight recruitment market, organisations must ensure their Employee Value Proposition (EVP) is fit for purpose in the new world of work. 

When sourcing candidates, employers should research and tailor their EVP according to the interests and motivations of candidates. 

Once engaged in the recruitment process, hiring managers must act as brand ambassadors, reinforcing the culture and values of the company at every available touchpoint.   

And don’t forget, in a small talent pool, candidates will discuss their experience with your company. It’s your job to ensure it is a positive story. Stay connected throughout the recruitment process and deliver on commitments within agreed timescales, including interview feedback or next steps.  

A strong EVP will play a vital role in attracting, engaging and retaining workers in an increasingly competitive market.  

The construction sector in 2022, and beyond.  

The next twelve months will certainly be a challenging time for recruitment within the construction sector. 

There is no quick fix. A single social value initiative or a commitment to flexible working trials will not adequately plug the skills gap.  

However, companies that take a holistic approach towards their workforce and recruitment strategy; sourcing from and building alternative talent pools, utilising technology to identify candidates and promoting a strong sense of purpose and company culture will be best placed to meet the challenges that lie ahead.  

Working with a partner like Hays Talent Solutions gives you access to technologies, advice and insights that can help your organisation thrive. Speak to one of our experts today to find out how we can help you attract and retain top talent for your industry.

AUTHORS

Mike McNally
UK Solutions Director, Hays Talent Solutions

Mike joined Hays in 1996, working in the Hays Specialist Recruitment business before joining Hays Talent Solutions as a Sales Director in 2011. Mike has a real passion for working with clients on large and complex workforce solutions projects with a track record in sales success of RPO, MSP and associated services primarily within the Construction & Property and Insurance sectors.

 

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