Hiring restricted by skills shortage

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Concerns about a lack of available talent are holding back UK employers looking to expand, according to reports by PwC and Talent Party.

The PwC Global CEO Survey asked more than 1,300 employers about their hiring intentions over the next 12 months. It found that one quarter of UK business leaders hope to increase their headcount by up to 5% over the coming year. 

One in five intend to increase their staff by up to 8% over the same period. Almost two-thirds (64%) of these employers are concerned the talent will not be available to realise their ambitions. 

PwC HR consulting leader Jon Andrews said organisations want a "wider range of skills" than ever before, adding that those looking to hire will have to adapt to survive. 

"Businesses need to get out of the mindset that new skills always equals new people," he said. "The most successful organisations will combine recruitment with internal mobility and the development of their own people to be more adaptable to its evolving strategy and business environment.” 

Twenty percent of people hired in the UK failed to match the requirements outlined in the initial job description, research by recruitment specialists Talent Party found. 

The survey, compiled of interviews with more than 200 UK hiring managers, suggests over half (52%) are struggling to find suitable candidates to fill advertised roles. 

Respondents also report a knock-on effect in the workplace. Two-thirds (66%) say that it leads to team members feeling overworked, while 56% cited managing under-performing staff as another major challenge. 

The employers also claim poor recruitment practices lead to staff feeling more stressed (54%) and suffering from lower morale (42%). 

Talent Party CEO Jamie Carlisle told HR magazine poor hires can often be a result of managers being "overworked."

"Hiring managers who are stretched can sometimes rush the process because of the pressures of having an empty seat," he said. "But a bad hire can be more destructive to a team that being one staff member down."