Since 2020, the UK construction industry has seen a significant rise in skill shortages and costing the industry billions of pounds annually. In 2020, the Open University calculated that UK businesses spent as much as £6.6 billion trying to fill the skill gaps.
This article will look into the skill shortages in UK construction in more detail and what can get done to tackle the issue.
What Is A Skills Shortage In The UK?
The term skill shortage gets used to identify the lack of skilled workers available in a particular industry or sector.
When employers find it difficult to secure skilled workers for vacancies, this can highlight a lack of skills in a certain area. Even though the working population in the UK is increasing, a significant skill shortage is developing in the UK construction industry.
Current Skills Shortage In Construction
As more time passes, the skill shortage in construction companies has become more significant, and the problem is starting to spiral out of control.
One reason for such shortages is due to the UK age force ageing. With more construction workers hitting the required retirement age, there are not enough people entering the industry at the other end to replace them.
Impacts Of The Skills Shortage In The Construction Industry?
Cost
The main impact that a skill shortage has on the construction industry is the cost. As mentioned, billions of pounds have gotten spent on trying to source staff, and recruitment costs are high as construction organizations strive to try and find key workers. Business immigration has also greatly impacted available employees and hiring since Brexit, many EU and non-EU works now face tighter visa rules.
On top of this, this supply and demand issue can lead to inflated salaries, as companies are forced to pay more to secure skilled workers that are in short supply.
Spending more than the average for staff also has a negative impact on temporary staffing. While trying to solve long-term skill issues, companies are forced to pay a premium rate for temporary staff to fill the gaps.
This scenario made up a third of the £6.6 billion spent in 2022, not to mention the costs of training inexperienced staff until they meet the requirements.
Visa Types That Are Available To Businesses In The UK
In total, there are four different types of UK visas available for businesses and entrepreneurs. Each version offers its own benefits and complications, making it tricky to decide which one migrant should be targeting to get accepted and come work for your brand.
Without a little reading, it can be hard to identify which visa is the right option for you.
However, it is essential that the right one is chosen to give themselves the best possible opportunity of getting accepted.
After all, you don’t want to spend money, time, and resources on an application for the wrong visa and immediately get rejected!
The new UK visa system is already strict and under constant scrutiny from some parts of the government. Therefore, you need to try and make the process as easy as possible and make
your visa application looks appealing to those in charge of determining your fate.
Here is a quick breakdown of each of the different visa options on offer in the UK.
UK Start-up Visa: As a new entrepreneur, setting up a business, this visa enables you to set up a business in the UK.
UK Innovator Visa: If you are an entrepreneur with the ability to fund your venture.
UK Sole Representative of an Overseas Business Visa: Brilliant for co-owners of foreign businesses that want to locate in the UK.
UK Investor Visa: An investor with at least £2 million to invest in the UK economy.
Unfulfilled Contracts
Rejecting work has significant consequences for any construction company, but that is a better option than accepting contracts they cannot fulfil. The repercussions to their reputation in the industry if they take on a job and don’t accept it can be crippling.
Over Time And Over Budget
A skills shortage within construction can lead to a project taking longer and becoming more expensive than planned. Once again, this can negatively impact the profits and reputation of construction and project companies alike.
What Can Be Done To Tackle The Skills Shortage?
Changing Perceptions
The first thing to do is try and change the perceptions of working in construction. The UK working population is expanding, so from that perspective, there should be no shortage of people looking for work.
With that in mind, it is important for the construction service to try and make a career in construction sound appealing.
For starters, very few millennials know of the many jobs that fall within the construction industry. Teaching younger people about the various career paths and opportunities on offer will ensure they are more excited about working in the construction industry.
Digital careers are more popular than ever for younger people, so modernising how construction roles are promoted is essential.
Changing The Reputation
Next, construction needs to evaluate and amend its reputation. For many, construction is seen as an industry full of middle-aged white men, and as a result, some demographics feel as though construction is not for them.
By diversifying the construction workplace, the talent pool will significantly increase the talent pool for recruitment.
Challenging inequality in construction is essential to ensure the industry is more attractive to ethnic minorities and women.
Collaboration
Trying to access potential construction works can be a tricky task. Collaboration is essential to try and work with local communities to excite people about the prospect of working in construction.
On the whole, 48% of UK employers believe work-based programs and apprenticeships are essential to try and reduce the skill gap.
Re-education
Finally, re-education is essential to develop and upskill existing workers. By widening existing customers’ skill sets, you will ensure that you get the most out of current workers.
Obviously, garnering new workers is essential, but that should not come at the cost of improving the current worker’s skill sets. Employees that see a clear and obvious path of commitment and career progression will ensure more people join the sector and tend to stay for longer.
