Challenges & Solutions in the Labour Supply Chain

The recent UK Labour Supply Chain Survey, conducted by the Association of Labour Providers (ALP), provides a comprehensive overview of the current state of the labour market, particularly highlighting the food industry. This blog outlines the major challenges faced by labour providers and employers, providing key statistics and highlighting solutions to navigate these issues.

Key Challenges and Statistics

1. Cost of Labour
   • 54% of employers reported increased labour costs, making it the most significant challenge.
   • The rising cost of labour is particularly acute in the food industry, where six out of ten businesses have started recruiting temporary workers directly to manage expenses.
2. Labour Shortages
   • While the availability of labour has improved, with 40% of labour providers now meeting all client demands (up from 21%), shortages remain a critical concern.
   • 39% of labour providers still cite labour shortages as a major issue, despite improvements since the peak shortage period in October 2021.
3. Government Support and Recruitment Challenges
   • Only 18% of labour providers find the support from Jobcentres helpful, reflecting widespread dissatisfaction.
   • Merely 6% find government employment support schemes effective, indicating a significant gap in the support infrastructure.
4. Recruitment Costs and Strategies
   • Increased recruitment costs are reported by 57% of labour providers, with 62% utilising increased advertising, particularly on social media, as a primary strategy.
   • Despite these efforts, many businesses still face challenges in sourcing enough workers, with 22% of labour providers experiencing pressure from clients to reduce rates.
5. Uncertain Immigration Policies
   • 51% of labour providers and 48% of employers advocate for expanding visa routes to include lower-skilled roles.
   • 28% of businesses in the food sector use the Seasonal Worker Scheme and are concerned about the continuity of this and other immigration pathways.

How can this be solved?

1. Improving Pay and Working Conditions
   • To attract and retain workers, businesses should enhance pay rates and improve working conditions. 61% of labour providers suggest improving pay and terms as a top priority for attracting workers.
2. Enhanced Recruitment Strategies
   • Diversification of recruitment channels, including social media and word-of-mouth referrals, remains critical. Additionally, 46% of businesses in the food sector are increasingly using direct recruitment for temporary roles.
3. Government Policy Adjustments
   • There is a pressing need for government reform to support flexible working and incentivise employment among UK residents. 62% of labour providers and 50% of employers want to see reforms in the benefits system to support this.
4. Leveraging Technology and Data
   • Investing in technology for better recruitment and labour planning can help businesses optimise their workforce. This includes using data analytics to predict demand and streamline operations.
5. Sector Collaboration
   • Increased collaboration within the sector, including partnerships with sector bodies and campaigns to attract domestic workers, can help address the workforce shortage. 44% of employers support working with sector bodies to promote the industry.

How The Recruitment Group can help?

We are equipped and suited to assist businesses in overcoming labour supply challenges through a range of services:

• Tailored Recruitment Solutions - Leveraging a deep understanding of industry-specific needs, We provide customised strategies to efficiently and cost-effectively secure the right talent for you. 
• Advanced Technology and Analytics - Utilising cutting-edge recruitment technologies and data analytics. We help to streamline the hiring process enhancing workforce planning.
• Policy Expertise and Guidance - Keeping up-to-date with immigration policies and labour laws, we offer expert advice to ensure compliance in a changing regulatory environment.
• Specialised Industry Knowledge - With a focus on sectors like food production, we deliver targeted solutions to tackle labour shortages and improve worker retention.

Partnering with The Recruitment Group enables businesses to refine their recruitment strategies, reduce costs, and build a robust workforce, setting the stage for success in a dynamic labour market.

If you need assistance and believe these challenges are relatable and need solving then fear not, give us a call on 01332 318 711 and we can discuss further.