Employers seeking to plug skills gaps are increasingly turning to older workers and ‘career returners’ as shrinking talent pools and tighter immigration policies intensify pressure on recruitment pipelines.
Research from consultants Barnett Waddingham shows two fifths (40 per cent) of UK employers are actively hiring people returning from a career break, while around a third are recruiting (31 per cent) or looking to retain (37 per cent) older workers.
The findings point to a labour market under growing strain, as both domestic and overseas talent sources contract. Three quarters of employers (77 per cent) say they are worried about staff lacking the skills they need, while rising rates of long-term sickness (68 per cent) and mental health challenges (73 per cent ) are compounding the problem.
This comes as more employees opt to delay retirement, often for financial reasons. Almost two fifths (36 per cent ) of workers have already delayed retirement or are considering doing so. The research found that this is driven by both a desire to remain active and a degree of financial necessity.
Externally, employers are contending with a narrowing supply of talent. Two thirds (64 per cent) are concerned about the shrinking availability of overseas workers as new immigration rules restrict the number of jobs eligible for Skilled Worker visas.
Meanwhile, declining birth rates and shifting attitudes among younger workers have left three in five employers (62 per cent) worried about the future availability of domestic talent.
Employers are increasingly looking at retention strategies to minimise the organisations risk associated with these pressures. Barnett Waddingham’s research shows that in the past year 84 per cent of employers have increased staff salaries, 81 per cent have stepped up investment into values and purposes while 79 per cent have boosted the training they offer mid- and senior-level staff.
Meanwhile one in six employers (16 per cent) expect to lose employees due to visa and immigration changes, almost half (45 per cent) offer visa sponsorship and say they have no plans to stop. A further 39 per cent. are increasing salaries to attract or keep skilled overseas workers.
Barnett Waddingham partner and head of platform and benefits Julia Turney says these findings underscore the resilience — and adaptability — of UK employers.
“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. But businesses aren’t standing still: they’re investing in their people and looking to older workers and returners to bridge the gaps.”
She adds: “But as the makeup of their workforce continues to shift, data and analysis will be the key differentiator. Older workers, for example, bring with them a wealth of experience and knowledge that is hugely advantageous to a business, but their needs and wants are notably different from those of younger employees. Understanding these workforce nuances will allow firms to target investment effectively and ultimately retain talent while minimising risk.”
