KPMG Leeds boss Euan West on how firms can attract and keep the best employees

But, as our economy battles more headwinds than a blustery day on Scarborough beach, there is one underappreciated challenge that our business community is facing – there just aren’t enough of us available.

To be clear, this isn’t in absolute terms, but in the pool of talent available for work.

Our latest Report on Jobs survey – which measures UK hiring activity on a monthly basis – shows that the availability of staff is falling at a rapid rate. In fact, the pool of people that businesses can hire from, for permanent and temporary roles, has been shrinking since the turn of the year in 2020/2021. This decline in the labour market has put a real strain on business’ ability to grow.

But, what does this mean for management teams? Well, the jobs market is incredibly competitive. While there are signs that demand is easing, businesses are still having difficulty finding the right staff. Meanwhile, those potential hires are having their confidence tested by the economy and are often opting to stay put rather than risking a move.

This all points to three important factors that will determine success for many businesses. They are the ability to recruit, retain and upskill staff.

Employer proposition

To put themselves in the best position to recruit the talent required to take their business forward, companies need to give real focus to defining why prospective joiners should choose them over their competitors.

For instance, at KPMG, we are continually assessing our employee value proposition, including running regular colleague surveys and focus groups to ensure our firm represents the values of our people and creates a sense of belonging. This includes having programmes and initiatives to drive inclusion, diversity and equity, such as our Empowering Parents initiative, and Black Heritage Talent Insight and IT’s Her Future programmes.

Businesses must recognise that employees want to work somewhere with purpose and impact. Therefore, companies must consider their impact on society, the environment, as well as their governance commitments, helping enable talent to do work that really matters.

Deepen the pool

The pandemic accelerated the use of technology in business, but also in society. The way that firms can engage with potential staff and run their recruitment processes is dependent on that technology.

For example, our outreach activity predominantly took place virtually during the pandemic, which allowed us to reach a wider group of prospective applicants. Essentially, deepening the pool of talent that we can draw from and connecting with candidates from a diverse range of backgrounds and career paths.

We recognise the benefits of face-to-face interaction and will be adopting this where possible, building on the successes of virtual recruitment alongside in-person activity as we move to more hybrid outreach approach.

Building a great team and reaching more candidates is also about offering a package that includes a lot more than just money. A competitive salary is important, especially amidst high inflation, but to cut through the noise and outmuscle the competition for prospective and existing staff, businesses must offer a package that meets today’s expectations.

Increasingly packages include a variety of health, wellbeing and lifestyle benefits, not just financial, as well as opportunities for career progression, such as alternative career pathways, and flexibility on working patterns. This all-round approach will put a business in the best position to get the staff it needs to reach its potential.

Skills for the future

Yet, the job isn’t done once you have a team in place or if a business just can’t hire the staff they need. The demands and pressures your business faces will continue to evolve. In turn, so will what you demand from your team. That’s where learning and development becomes critical, not least considering the challenges that employers already face to recruit in the current market.

Now is the time for management teams to identify the knowledge and capability gaps that they have now and are likely to have in future, and to engage with their workforce to make sure they are equipped with the skills to overcome them. That investment will help future proof, but also reduce the reliance on having to go to the jobs market and wrestle with other employers for talent. And, perhaps more importantly, it provides the development that many staff need for a fulfilling and empowered career.

The pandemic reminded us all of how precious human contact is, and the value that people bring to our organisations. As we head into what will be a difficult winter, I’m certain that it will be those that can create the most attractive employer proposition, invest in and take care of their staff, and organically build the skills they need, that will have best weathered the storm and be in a stronger position to benefit from the upturn when it comes.

Euan West is Office Senior Partner at KPMG in Leeds