Three-quarters of respondent businesses have been impacted by labour shortages over the last year and a majority now believe the issue is a threat to labour market competitiveness, in a new survey out today (Tuesday). In its annual Employment Trends Survey with Pertemps Network Group, the CBI reports that “shortages in the labour market are having a material impact on firms’ ability to operate at full capacity, let alone grow.” Many businesses have responded by investing in training, while also increasing pay and improving their offer to staff to help retain workers and attract new recruits. The survey found that:

• Nearly half (46%) of those who have faced labour shortages in the past 12 months have been unable to meet output demands; 36% made changes to or reduced the products or services they offer, while 26% reduced planned capital investment.
• Nearly three quarters of respondents (72%) said the UK has become a less attractive place to invest/do business in over the past five years.

• Respondents were most likely to see shortages of labour (75%) and access to skills (72%) as threats to labour market competitiveness. Concern about labour costs (59%) has risen on last year and the cost of living (69%) has become a significantly larger threat. Meanwhile, concern about the impact of employment regulation (35%) has been stable.
• Seven in ten respondents (70%) thought access to labour would still be a threat to labour market competitiveness in 5 years’ time.
• In response to labour market shortages: 55% of firms reported that they are investing in training to upskill current employees; 56% are investing in base pay; 45% in improving their Employee Value Proposition; while 40% are investing more in technology/automation.

• When asked what measures government should prioritise to help ease labour shortages, 46% called for the government to introduce incentives to help businesses invest in technology and automation to boost productivity, while 44% wanted government to grant temporary visas for roles that are in obvious shortage.

Matthew Percival, CBI director for skills & inclusion said: “It is crystal clear that labour market shortages are having a material impact on firms’ ability to operate at full capacity, let alone grow. “Businesses are pulling every lever they can to attract and retain employees, but this is making productivity boosting investments like training and automation harder. “To go for growth and build a higher-wage economy we will need to ease shortages to create the conditions for higher investment. That means helping more British workers to overcome barriers into the workplace, like a lack of affordable childcare, and taking a pragmatic approach to immigration. “The Government has committed to looking at both issues which is great to see, and urgently updating the Shortage Occupations List should be the starting point. The Apprenticeship Levy stops firms investing in the skills their employees need and is in dire need of reform.” Carmen Watson, chair of Pertemps Network Group, said: “The issues we are seeing in terms of labour shortages are not new and are not going to go away in the short term. The issues are being exacerbated by the current economic climate. “Candidates are in a position to be very selective. It is not all about salary – real pay growth currently stands at minus 2.5%, taking into account inflation, so employees are feeling the pinch. As well as doing everything possible to address this pay growth shortfall,  it is about the whole package of incentives, wellbeing support and flexible working that is on offer when an organisation is seeking new employees. “The figures in this survey should be a wake-up call to any businesses who are not already taking a long, hard look at their attraction and retention policies. “We need to reach out to all the people out there. There is a wealth of untapped talent who, with the right incentives and the right training, can be a valuable resource to overcome the concerns expressed by respondents to this survey. “For companies to survive this, they need robust attraction and retention policies, with investment in training and development and a focus on diversity, equality and inclusion, as well as the environmental performance of the organisation. “There is no single thing that can be done to solve the labour issues – it involves collaboration between supply chains, businesses and recruiters to come up with longer-term, sustainable, recruitment strategies.” On future hiring intentions and the impact of inflation on pay reviews:

• A third of respondents (33%) planned higher levels of recruitment for permanent roles over the coming 12 months compared to the previous year, down from 46% last year, while 39% expected the same level of recruitment.

• Nearly half (46%) of respondents whose firms are taking action to support employees on cost of living reported bringing forward or having additional pay reviews, and 36% gave staff one-off bonus payments.
• A third (34%) of respondents reported that their organisation’s approach to the next pay round was best described as ‘giving a general increase below inflation’, significantly higher than previous years; organisations giving a pay increase in line with inflation (29%) is the lowest since 2012.
• Only 7% expected to provide a general pay increase above inflation in their next pay round, the lowest in almost a decade.

Jennifer Beckwith, CBI deputy director for employment policy, said: “One of the ways high inflation hurts households is through making it harder for employers to offer the kind of pay rises that will match the rising costs people are facing without putting up prices. It also means most businesses, and the highest proportion since we started asking the question in 2018, are now worried about labour costs threatening UK labour market competitiveness. “The Government has moved swiftly to support households and businesses on energy costs, and firms are doing what they can to find ways of supporting their staff through the cost-of-living crisis. In the months ahead, Government and business will need to work together to set the UK on a path to higher productivity – the only sustainable way to achieve long-term wage growth.” When asked what the Government should do next on the National Living Wage, the survey found that a narrow majority of employers (53%) thought that they should be focused on productivity and growth in order to increase wages across the board, while relying on the current relative target for the National Living Wage (two-thirds of median earnings) to ensure that it rises too. The Employment Trends Survey was conducted between 16 August and 1 September with 325 firms responding, prior to the Government’s detailed announcement on energy support for business and the fiscal statement.

Derby-based doughnut firm Project D has teamed up with Nottingham sweet company Treat Kitchen to combine the best of both products. This ‘match made in heaven’ was officially launched on Saturday, October 1, at the Treat Kitchen flagship store, in Nottingham’s Victoria Centre. The occasion was marked by a bumper giveaway of 500 free doughnuts, which were gone within the first hour and saw customers queueing to the doors of the main centre. Thousands more have been sold during the first full week of trading. Project D has specially crafted the doughnuts for its new permanent Nottingham concession to include Treat Kitchen’s wide range of confectionery products. The partnership agreement includes the sale of Project D’s vegan doughnut recipe, designed to complement the sweet manufacturer’s own ‘gourmet’ vegan confectionery range. Max Poynton, operations director for Project D, said: “We’re absolutely delighted to have entered this partnership and to finally have a permanent home in Nottingham city centre. “Project D has proved insanely popular with the public every time we’ve held an event in Nottinghamshire, so the deal with Treat Kitchen is simply fantastic. The store was absolutely inundated during the launch event, and trade has not slowed down in our first full week there. “Treat Kitchen holds many of the same values that we do at Project D, and it’s clear that shoppers in Nottingham love the new products. “And, with the special vegan range, combining with Treat Kitchen’s amazing gourmet range of vegan sweets, there’s something for everyone.” Treat Kitchen has allocated an impressive nine-tray display cabinet in its store to the new doughnut concession. The partnership with Project D was initially sparked by a chance meeting with Max Poynton at a Midlands business networking event. Jess Barnett, co-founder and brand director of Treat Kitchen, said: “As soon as we started chatting, it was clear that Project D had lots of crossovers with our own business. “Things like the vegan elements, which we both supplied, and the joyous, treat focus of our brands, meant it was likely to be a match made in heaven. “The hugely popular launch of our partnership represented yet another exciting product that we’re proud to add to our range. Like Project D, which has seen meteoric growth since it launched in 2018, Treat Kitchen has seen its business grow by 300 per cent over the last three years.

For World Mental Health Day (10^th October), David Wilson Homes East Midlands is encouraging open discussions about mental health in the workplace. Three employees for the housebuilder have undergone training in mental health first aid, and are now the first port of call for colleagues who are experiencing issues with their mental wellbeing. One of the Mental Health First Aiders based at the developer’s head office in Coalville, Tina White, is sharing her experiences to help spread awareness of the importance of mental health. Tina, 42, who works as an Assistant Accountant, said: “Employees were asked to come forward if they wished to become a Mental Health First Aider, and after some thought I put myself forward. “I found the training process very easy and informative, the training consisted of four sessions spread over two weeks with some additional studying online between training sessions. “There was a mixture of listening to the instructor, watching online videos and reading involved including some mini workshops where we would practice how we would approach various situations.” Tina’s training not only enabled her to learn how to promote positive mental health among colleagues, but also learn things about mental health that she wasn’t previously aware of. She continued: “It’s not always obvious that someone is struggling with their mental health and many people will mask how they feel. “It is very important to talk about mental health to break down the stigma often attached to mental health, to make it easier for people to come forward and seek help and to make it easier to for people share their experiences. I don’t think the importance has increased over recent years; I feel that we are becoming more open to talking about mental health.” Promoting the importance of mental health in the workplace is a huge focus for the developer, as raising awareness and offering resources provides a step towards improved mental health for workers in the construction sector. According to the mental health charity Mind, one in four people will experience a mental health problem of some kind each year in England; with one in six people reporting experiencing a common mental health problem, like anxiety and depression, in any given week. Tina is encouraging people to consider mental health training to help support others around them. She added: “I am proud to be a part of a great team that is there to help others in their time of need. “I feel the more people that become Mental Health First Aiders, the more open we will all be to talking about mental health.” John Reddington, Managing Director at David Wilson Homes East Midlands, said: “We are incredibly proud as the UK’s leading housebuilder to offer this mental health first aid training to our employees. Tina is a credit to the company for her enthusiasm and fantastic support to colleagues. “Our employees and their mental health are of upmost importance to us and we couldn’t be happier to be leading the change in discussing mental health within construction.”

New data, for World Mental Health Day (10 October), from HR, payroll, and finance experts MHR reveals over 6 in 10 (62%) employees believe their employer does not care about their mental wellbeing, with over half (55%) of respondents feeling pressures to hide their mental health concerns at work. Employees across the UK and Ireland are facing the detrimental affects of the cost-of-living crisis, presenting strains on both financial and mental wellbeing. When asked what triggers the most stress during the cost-of-living crisis, the rising of bills came in as the top factor at 46%, followed by 29% saying energy costs. Over a third (34%) of respondents also said that their employers providing financial support would help their mental wellbeing over more flexibility, better workloads, and stronger benefits. Prices are continuing to rise and the cost-of-living crisis is showing no sign of slowing down. With respondents showing that bills are triggering the most stress, and that financial support could help to improve mental wellbeing – financial and mental wellbeing present themselves as an intertwined problem that organisations need to tackle this World Mental Health Day. Jeanette Wheeler, chief HR officer at MHR, said: “In recent years employee wellbeing has been a top focus for many employers, but the ongoing cost-of-living crisis shows that all aspects of wellbeing should be looked after, including financial and mental wellbeing. “While many may not be able to provide additional financial support, there are other ways to reduce stress and improve mental wellbeing during this time. Be it adjusting deadlines, considering other benefits to cut costs, and simply being a sympathetic ear for a colleague. “The fact that employees feel pressured into hiding their mental health is concerning, and with some believing their employer doesn’t care about their mental wellbeing at all, shows a real division between employers and employees. “To bridge this gap, employers need to form connections with employees beyond work and prove that their mental health comes first. Having these conversations is advantageous to everyone as will enable employees to get their concerns off their chests, perhaps find a solution, or simply start to feel in a better place after talking with another person.”

The Business Gateway Growth Hub has launched a new Peer Network specifically aimed at helping early-stage business owners in Leicester and Leicestershire. The new programme, which starts on 27 October, will support the growth and development of businesses trading for over six months and less than two years. Peer Networks have been the success story of recent years enabling business owners to build and strengthen their organisations through a trusted support network. The Early Business Peer Network will be facilitated by Maria Peggs of Vispera, an award-winning growth specialist. It will provide an opportunity for early-stage businesses to share ideas, collaborate and network with fellow entrepreneurs who are at the same stage in their business journey. There will be 10 online sessions of two hours each covering topics such as:

• Start with the end in mind
• What are your foundations
• Knowing your numbers
• What resources are available to you
• Marketing channels and what is your why

This kind of programme would normally cost over £1,000 but is fully funded for eligible businesses. Find out more and book a place now.

Mental health is something we all need to be aware of in the workplace. With one in six British workers affected by problems like anxiety, depression and stress every year, it’s not surprising when a company invests in its staff, it gains rewards in staff loyalty and commitment to the job. Lincolnshire-based specialists in interior design and fit out, APSS, look at how you, as an employer, can help your staff have a more positive mental health attitude and know the risk factors. According to the Mental Health Foundation, there are signs you can spot at work:

• Being more tired than usual
• Making uncharacteristic mistakes
• Finding it hard to motivate others
• Timekeeping slipping
• Short-tempered
• Trying to isolate themselves from others
• Speeding up and becoming more chaotic
• Intruding on other people’s conversations

People talking about mental health is getting better, but it still has a long way to go. There is still the worry that they will be judged by their mental health or discriminated against for it. So as an employer how can you create the right atmosphere to help your staff with their mental health? How can line managers help? Keep Staff Active Mental health services suggest that regular exercise is proven to help those who are at risk of depression and anxiety. It can boost self-esteem, help with concentration, sleep and with generally improving health and wellbeing. As an employer, you can’t force your staff to exercise, but you can make it easier for them to do so. Allowing them an hour lunch break can enable staff to take a walk after eating lunch, or you can introduce a bike-to-work scheme, a social exercise group like running or cycling on lunch breaks or after work. There are plenty of ways to help without any physical changes to the workspace. However, there are changes within the office which can help too. Simple adjustments like Sit-Stand desks where the user can adjust the height to amend their position throughout the day. This slight adjustment has proven to help with productivity across the day. Installing a small gym in an unused room or area can help your staff get that exercise in without feeling like they are going out of their way to try and fit it in. Just 30 minutes of exercise, five days a week can really help, and an on-site gym can make it easier for them to do this on their lunch break. The Right Break Space It’s impossible to keep 100% focused all day, every day. When you work in an office, you’re often staring at a computer screen and that can be mentally exhausting. If you’re working in a customer-facing environment, it’s mentally exhausting to be putting on a happy face when you’re not feeling your best. Ensuring your staff have a good space to get away from their desks and customers will help recharge and refocus them, providing a fresh boost of energy to be more productive for the rest of the working day. These spaces could include a soft seating area, a games room, anything that is welcoming and has enough space to accommodate the staff who use it at the same time. Engage with your staff to ask them what they want in a breakout area. Would they benefit from soft seating, would they rather have a larger table so everyone can get around it or would they rather have multiple tables if it’s a larger company with lots of departments? Do they have any hobbies that could easily be incorporated? As a company, you could provide mental health days, where staff can take a day off with no questions asked to look after their own wellbeing. Simple things like taking holiday can be hard for some. They feel they still need to keep on top of work emails and deal with issues whilst they are away from the office. This does not allow them to fully recharge as they are still dealing with the stress of the office, only now they are doing it on their personal time. Creating the Right Work Environment Your staff work hard and need the right environment to be able to do their jobs. As much as APSS promotes making the workspace attractive and fun to work in, if you don’t have the basics in place, you are going to be off to a non-starter. Having an open-plan office design is great for teamwork and knowing what’s going on around you, but they can get rather noisy at times. By creating a few quieter working areas, like a bookable private hot desk, staff will have the flexibility to get away from the noise and concentrate on their project, helping reduce personal stress levels and improve productivity. Office temperature can also be a big influencer. When the workplace is too hot, staff quickly become demotivated, frustrated, and lethargic. When it’s too cold, people physically slow down, lowering productivity as well as the ability to focus, especially if they don’t have an active job. Ensuring you have the right sort of air conditioning (HVAC) system and keeping it maintained will help your workplace remain at a temperature you feel is appropriate. However, as we all know, you can’t please everyone when it comes to the temperature, and we are sure there will still be at least one person saying it’s too hot whilst another says it’s too cold. Boosting Natural Light in the Workplace Natural light is a great way to help improve motivation and well-being. By maximising natural light in the workplace, you can help reduce issues including headaches, eyestrain and blurred vision by up to 84%. It promotes vitamin D, which combats depression and diabetes amongst other things and it also helps to provide a connection to the outside natural world. Installing skylights, larger windows and curtain walling in a building can quickly become costly. However, by switching solid walls with glass partitions, you can easily expand the reach of natural light. If you’re worried about privacy, on-brand manifestations will still let the light in whilst preventing peering eyes. Simply, by better planning the space in your office, you can shuffle the layout to allow staff to have more access to natural light. In the winter, the days get shorter and it’s harder to utilise the natural light. By installing LED lighting, it reduces harsh lighting and appears as bright white light, just like daylight. It’s the next best thing to the sun. If you are looking to make changes to your workplace to help encourage a more positive environment, APSS has trained staff in space planning and design to make the most of your space. Call us today or visit our services page to see how we can help.