The Balancing Act

Talent shortages and rising compensation demands are placing extraordinary recruitment and financial strains on businesses across the UK

No matter if they’re seeking to recruit more workers, or to retain the employees they currently have, many UK businesses are under pressure to balance employee demands and maintain their bottom line. However, contact centres, administration and business support, and accounting and finance workers are expecting more, demanding more, and may be prepared to change jobs if they do not get what they want.

Talent Problems Impacting Productivity and Profitability

As hiring remains difficult and salary expectations rise, businesses are struggling to maintain their bottom line

Despite a faltering economy, rising interest rates, supply chain issues, and the ongoing impacts of Brexit, UK businesses remained optimistic as they entered the third quarter of 2023. Never mind the talent shortage, and the more than 1,000,000 unfilled job postings that remain as a persistent reminder of the state of the national workforce post-pandemic; 44% of surveyed UK businesses were expecting to recruit more workers, displaying a +29% net positive hiring outlook, and expansion intentions across all major industries.However, intentions are one thing, realising those goals is another. The UK remains gripped in a talent shortage that’s reached a 17-year high, with the lack of workers impacting productivity and profitability across the entire economy. Administration and Business Support, Contact Centre and Customer Service, and Accounting and Financial workers populate every industry, providing essential services and skills to keep all types of businesses operating at capacity. However, despite their universal roles, these workers are also part of the national recruitment problem – as they are either in short supply, prone to switching jobs as revealed by high churn rates, or frequently dissatisfied with their compensation and working conditions - making worker attraction and retention more difficult for employers.So where does this leave UK businesses – those that specialise in these service fields, such as call centres, or those that simply need more administrators, support workers, bookkeepers, and accountants?
It leaves them struggling to attract new talent and retain the workers they already have, being vulnerable to personnel poaching by competitors who can offer higher pay, facing continuing demand for flexible working from the 84% of workers who sampled hybrid working during the pandemic, more worker recognition, better conditions, and greater opportunities for career advancement. In short, the UK’s acute lack of workers has given employees the upper hand, offering them more bargaining power than before and reflecting that the world of work has changed dramatically since 2020.

84%

Of UK workers who experienced working from home during the pandemic intend to do so for the future

Source: UK Gov. Feb 2023.

What it all boils down to:
Compensation is still the number one motivator when attracting or retaining talent as well as boosting their uptake of hybrid working, providing paths to continual improvement, and raising their ESG goals. Businesses wishing to hire or retain more customer service, administration, business support, or financial workers could consider raising compensation offers as an added element of their Employer Value Proposition (EVP).Greater knowledge of current salary rates for various roles across the Contact Centre, Business Administration & Support, and Accounting & Finance industries is essential to support an attractive compensation offer. Read on to discover more about salaries, hiring difficulties, and the balance of supply and demand for workers in these sectors at the national, regional and city levels.