As UK Labour Shortage Grows Background Checks Are More Important Than Ever

The coronavirus pandemic has had an impact on every industry. Commentators regularly predicted a jobs crisis after the worst had passed and the furlough scheme had ended. While the UK has ended up in a jobs crisis, it's not quite the one that people were expecting. Rather than a massive boom in unemployment (although rates have risen), there is a mass of unfilled job vacancies. The labour shortage in the UK is now preventing firms from recovering or growing post-pandemic.  

The UK Labour Shortage  

In the three months leading to July 2021, there were approximately 953,000 vacant roles advertised in the UK. This is around 600,000 more than the same period in 2020. Although 2020 saw a record low for vacancies, the subsequent jump has far outstripped any comparable period in the last fifty years.  

According to the Recruitment and Employment Confederation (REC), in the week of 23-29 August, there were 1.66 million job adverts nationwide. This week also saw nearly 200,000 new adverts posted. The biggest surge in vacancies was found in the hospitality, retail and cleaning sectors. Both COVID-19 and Brexit are being blamed for a shortage of both high and low-skilled workers.   

Recruiters are warning that the labour shortage is likely to stunt economic growth for a number of years. Chief Executive of the REC, Neil Carberry, said:  

“For government, the pressing issue is that labour shortages will limit business and economic growth in the months to come. It’s time to work with businesses and make the reforms needed to unemployment support and the skills system, and put more people on a path to a good job.”  

With the intention to hire remaining high with businesses, some are beginning to offer increased wages in response. However, as hiring managers get desperate for staff, it's important that hiring standards remain high. Recruiting staff that are unsuitable for your business can cost you more than you might expect.  
 

The Cost of a Bad Hire  

When KPMG surveyed business leaders, they discovered that a bad recruit cost them between £2,000-£10,000 a month whilst they were employed. A scenario described by the Recruitment and Employment Confederation (REC) revealed similar results:  

“For a case of a bad hire with a salary of £42,000 who was fired within a year and, subsequently, replaced, with impact on productivity and staff turnover, the accumulated costs reach a shocking £132,015”  

The costs of a bad mid-level hire can end up costing employers over three times that individual's salary. When you also consider the negative impact a bad hire can have on the morale of your other workers, the costs quickly add up. Background screening, particularly in the case of senior management or C-level roles, can give you the tools you need to ensure you're making effective and reliable hiring decisions.  
 

How Background Screening Can Help  

There is often a different type of check for whatever information is important to your organisation. DBS Checks are the most common form of background checks run by UK employers. They are tools for employers allowing them to screen their recruits for any criminal record information that may conflict with their ability to perform a role.  

Other checks can range from adverse financial history checks all the way through to searches of international watchlists and media coverage. Having this kind of information can not only help mitigate the costs of a bad hire but also any potential damage to your reputation from becoming involved in a media frenzy.  

Implementing a legally compliant background screening process is a complicated and time-intensive task. Screening regulations tend to involve overlapping areas of legislation that can often be contradictory. Relying on professional background screening and compliance organisation is the best way to ensure you get the most out of this process. 

Why not join the ever-growing community of conscientious businesses taking the leap into background screening? For more information about how Personnel Checks background screening solutions can aid your organisation, get in touch! You can give us a call on 01254 355688 or drop us an email at letstalk@personnelchecks.co.uk