Region 's firms see recruitment as key to unlocking growth - report

Midlands businesses plan to hire more people to support growth in 2022, according to new research from accountancy firm BDO.

More than a quarter of medium-sized businesses intend to increase the size of their workforce over the next 12 months, with 18 per cent planning to pay staff more in order to attract and retain talent.

The bi-monthly Rethinking the Economy survey of 500 medium-sized businesses revealed that Midlands companies remain optimistic about recovery post-pandemic.

Thirty-eight per cent of businesses expect to return to pre-Covid-19 revenues within the next 12 months.

Growth ambitions will be supported by new hires, together with an increase in prices of products and services (35 per cent).

However, a shortage of workers and the rising costs of employment could hamper recovery in 2022.

When asked about skills shortages, nearly a third (32 per cent) of businesses in the region stated that finding enough people with the right skill-set was one of their biggest concerns, with a particular challenge around the number of available apprentices.

Two years on from Brexit, 34 per cent of businesses are also concerned about a shortage of overseas workers.

This is leading to an increased focus on hiring domestic employees, with nearly a quarter (23 per cent) relying on a greater percentage of UK-based workers this year.

Tim Foster (pictured), partner at BDO based in the Midlands, said: “The recruitment challenges facing Midlands businesses are well documented and the war on talent is very real.

“The task of finding the right people to fill a growing number of vacancies transcends sectors, levels and specialisms.

“However, despite the rising cost of employment, and an impending increase in National Insurance contributions, regional companies are remaining faithful to the importance of investing in people to achieve growth.

“While it 's extremely encouraging to see such optimism within the Midlands business community, both in terms of the speed at which they expect revenues to return to pre-Covid levels and the confidence they have in the rewards of new hires, there is clearly a real job to be done in encouraging more young people to consider the value of apprenticeships, particularly those from a low socio-economic background who may not consider this route a viable option for them.

“The Government 's commitment to apprenticeships through its announcement most recently in the 2021 Autumn Budget, where funding for apprenticeships and the National Skills Fund (NSF) was increased, will undoubtedly help to bridge this gap. ”

The Rethinking the Economy survey also found that in 2022 Midlands businesses will look at a variety of different ways to overcome the problem of staff shortages, with 23 per cent admitting that they 've been able to hire from a more diverse pool of candidates as a result of the rise in remote working.

What 's more, 23 per cent of regional companies intend to introduce a number of new perks in 2022, such as increasing salaries and new joiner bonuses, in order to attract and retain staff.