Skip to main content
We're here with practical information for your business. Learn about business planning, running a business and more.

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

Four in ten UK firms facing staff shortages

17 August 2021

Research conducted by the Institute of Directors has found that 44% of businesses are currently struggling to recruit the staff they need.

The Institute of Directors (IoD) has polled more than 700 of its members to find out how extensive the staff shortages are and what is driving them. Its findings show that the majority (65%) of those affected say the problem has been caused by the UK's long-term skills gap.

However, the findings suggest that Brexit and the pandemic are also having a significant impact on staffing:

  • 38% say there is a lack of potential employees from the EU;
  • 21% say shortages are occurring because staff are being told to self-isolate;
  • 21% say furloughed or inactive workers are reluctant to return to work.

Directors are finding that the most challenging roles to fill are those that call for high-level qualifications; skilled tradespeople are also much in demand. In response to these shortages, 81% of directors would support loosening immigration requirements as a way of easing the pressures on the labour market.

Labour shortages are also impacting on the salary costs facing business. Three-quarters of directors say they are concerned by this. Half of those affected are observing increases in wage costs in excess of 5%.

The IoD is calling on the government to increase its efforts to train workers, facilitate the issuance of working visas and reduce the costs of employment. Its proposals include:

  • Extend the Kickstart Scheme beyond 2021, and invest in the Knowledge Transfer Partnership scheme to allow SMEs to access university talent;
  • Suspend the Immigration Skills Charge for small businesses and explore other ways of easing immigration restrictions;
  • Temporarily slash non-wage costs like employers' NICs, for example by raising the employment allowance, for start-ups and the hospitality sector in particular;
  • Encourage investment in training by creating a new temporary tax incentive to support spending on retraining, technology, and green growth, or widen R&D tax reliefs to include these.

Joe Fitzsimons, IoD senior policy advisor, said: "Employers are keen to re-build following an incredibly turbulent 18 months for business. But the issue of labour shortages is proving disruptive across a huge range of sectors and at all levels … Although there is light at the end of the tunnel, with COVID restrictions continuing to ease, businesses are still relying on the government to address the ongoing challenges within the labour market. There are actions the government should take in the immediate term, although they must not neglect the longer-term skills gaps employers are facing."

The latest quarterly Labour Market Outlook from the Chartered Institute of Personnel and Development (CIPD) has found that two in three employers are planning to take on new staff and many plan to upskill staff in a bid to tackle labour shortages.

The survey found that its net employment intentions figure, which measures the difference between the proportion of employers expecting to add jobs and those planning to cut them, has risen for the fourth consecutive quarter. The figure now sits at +32, up from +27 last quarter, marking the strongest employer intentions seen since tracking began in 2012/13.

When asked how employers with hard-to-fill vacancies will deal with these vacancies, 44% said they would upskill existing staff, 26% said they would hire more apprentices and 23% said they would raise wages.

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to our lively and colourful newsletter for new and more established small businesses.

Contact us

Make an enquiry