The British Chambers of Commerce Insights Unit Report
The latest findings from the British Chambers of Commerce (BCC) Insights Unit are ringing alarm bells across the engineering sector. According to the Quarterly Recruitment Outlook (QRO), the second quarter (Q2) of this year has seen a sharp increase in recruitment challenges, with 82% of engineering firms struggling to hire the talent they need. This represents a significant jump from the 66% reported in Q1, underscoring the mounting pressure on businesses.
Why the increase in Recruitment Challenges?
Jane Gratton, BCC Deputy Director of Public Policy, highlighted the gravity of the situation, stating, “It’s alarming that recruitment difficulties have increased in recent months across all sectors. The very sharp rise in the engineering industry is particularly worrying.” This increase is attributed to a combination of technical skills shortages and rising labour costs, which are negatively impacting growth and innovation in engineering.
Addressing the Talent Shortage
So, what can engineering firms do to navigate these recruitment challenges? Here are some strategies:
- Invest in Training and Development: While Q2 saw an uptake in firms investing in staff training (28%, up from 26% in Q1), there is a clear need for more substantial investment. Upskilling existing employees can bridge the talent gap and develop loyalty.
- Enhance Employer Branding: Building a strong employer brand can attract top talent. Highlighting company culture, career development opportunities, and benefits such as a flexible or hybrid working model can make your company more appealing to prospective employees.
- Utilise Recruitment Technology: Leveraging advanced recruitment tools and platforms can streamline the hiring process and help identify the best candidates more efficiently.
- Build Industry Partnerships: Collaborating with educational institutions and industry associations can create a pipeline of skilled workers. Apprenticeship programs and internships can also be beneficial.
The Cost Challenge
Labour costs continue to be a significant external pressure, with 76% of engineering firms indicating potential price rise as a result. This concern requires innovative approaches to cost management without compromising on quality.
Looking Ahead
As the industry contends with these challenges, it’s crucial for businesses to stay agile and proactive. By prioritising training, enhancing recruitment strategies and managing costs effectively, engineering firms can overcome this challenging period and emerge stronger.
Need support in your hiring challenges?
Recruiting for the Engineering sector is an extremely competitive market with increasing skills gaps. We have provided recruitment solutions to the engineering industry and high technology manufacturing sectors. As a leading outsource business, we help you to recruit permanent, temporary, contract, consultancy and interim staff at all levels within Scientific, Technology, Engineering and Mathematics STEM jobs across the UK, in both commercial engineering and defence sectors.
With over 30 years’ experience in engineering recruitment our specialist consultants provide our clients the quickest access to the best and diverse talent available.
Stephen Lynch, Head of Solutions Delivery shared his thoughts on recruitment challenges within the Engineering sector:
“Recruitment within the engineering sector is more challenging than ever, with a sharp rise in talent shortages across the sector and a demand for niche technical skills, we understand that securing the right talent is critical to driving innovation and sustaining business growth. Our dedicated team of specialists is committed to providing tailored recruitment solutions that address these challenges head-on. By leveraging our deep industry knowledge and access to diverse talent pools, we have a great portfolio of candidates to help narrow the skills gap. Commitment is also required from organisations to offer hybrid and or flexible working arrangements as well as competitive benefits and create an inclusive workplace”
Get in touch with Stephen Lynch, to find out more about how Outsource UK can help you with your recruitment challenges.
Why do our clients trust us?
“Outsource UK have been a valued supplier to BAE Systems for the last 15 years. During this time, we have consistently hired across a broad spectrum of roles and Outsource’s contribution has seen a 5-fold increase since 2012. Throughout the relationship, there have been challenges in procuring the necessary volumes of niche resource and Outsource UK have provided a consistent and reliable level of service throughout. I would have no hesitation in recommending Outsource UK as a trusted recruitment partner.”
Executive Sponsor, BAE Systems
