Returners and Older Workers: The Solution to Employers’ Skills Gap Worries
In today’s constantly evolving job market, employers are facing a growing concern about the skills gap among their staff. To address this issue, a new trend is emerging – the hiring and retention of returners and older workers. This was revealed in a recent study conducted by independent consultancy Barnett Waddingham (BW).
The research, which surveyed 500 UK senior HR professionals, business owners, and CEOs, found that 77% of employers are worried about their staff lacking the necessary skills to perform their jobs. In response to this concern, 40% of UK employers are now actively hiring individuals who are returning from a career break, while 31% are actively looking to retain older workers.
This shift in hiring practices reflects the mounting pressures faced by businesses both internally and externally. Internally, a growing number of people are choosing to delay their retirement and continue working, while employers are facing challenges such as mental health issues among employees (73%) and long-term sickness (68%).
Externally, talent pipelines are under strain due to factors such as declining birth rates and reduced availability of overseas workers. According to the research, 64% of employers are worried about the shrinking availability of overseas talent, while 62% are concerned about the future availability of domestic talent.
To combat these challenges, employers are increasing their investment in retention strategies. The study found that 84% of employers have increased the amount they pay their staff, 81% have invested more in their values and purpose, and 79% are providing additional training for mid- and senior-level staff.
Despite the concerns over the availability of overseas talent, 45% of employers still offer visa sponsorship and 39% are increasing salaries to attract and retain skilled workers from other countries.
Julia Turney, Partner and Head of Platform and Benefits at BW, explains, “The labour market has bared its teeth yet again – bringing some new, and some familiar, challenges for businesses to contend with when tackling their balance sheets. Skills gaps, sickness, a shortage of talent and tightening regulations are all colliding to squeeze employers from every angle.”
She continues, “But businesses aren’t standing still: they’re investing in their people and looking to older workers and returners to bridge the gaps. As the makeup of their workforce continues to shift, data and analysis will be the key differentiator. Understanding workforce nuances will allow firms to target investment effectively and ultimately retain talent while minimizing risk.”
The study also surveyed 2,002 employees in the UK and found that 36% are considering delaying their retirement due to the desire to continue working or financial reasons.
About Barnett Waddingham (BW)
BW, now part of Howden, is a leading UK consultancy that specializes in risk, pensions, investment, and insurance. With a presence in multiple UK offices, BW works with a wide range of clients in both the private and public sectors, including 22% of FTSE 100 and 15% of FTSE 350 companies.
The company’s promise is to always do the right thing, which is reflected in every aspect of their business. Their forward-thinking approach and focus on long-term solutions have made them a trusted partner for clients seeking strategic and creative solutions.
To learn more about the Howden acquisition, read the article in Corporate Adviser here.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.