Plugging the gap… overcoming the skills shortage

Introduction
Skills shortages across the engineering sector continue to hit the headlines, with the House of Commons’ Innovation, Universities and Skills Committee announcing an inquiry into just this issue to start in the spring. The problem has affected the defence industry as much as any, with many employers waiting up to six months to fill a position, affecting both current employees and the company as a whole.

But for employers the problem isn’t just about attracting and recruiting the right candidates; they should also start considering the importance of holding on to the good ones they already have. With the cost of recruitment averaging at £4,500 per employee [1], not including the loss of productivity through holding a post open, employers must do what they can to keep retention as high as possible.

The problem
Employers in the UK engineering industry have been suffering from a lack of skilled workers for a number of years and this is beginning to have a negative effect on productivity and profits - a third of firms believe that graduate skills shortages are costing money through delays in product development and recruitment costs [2] .

The danger in the long run is of course that the UK’s engineering industries will lose out to emerging powers, which have both the quality and quantity of talented employees. Almost half a million engineering graduates emerge each year from India and China, compared to only 25,000 here in the UK, approximately 8% of university entrants.

In addition to the challenges of recruiting talent, retaining it also has its problems. A survey conducted by John Prodger Recruitment [3]and Electronics Weekly found that 11% of engineers questioned were likely to move within a year and a huge 63% within two years. With demand for certain skills so high, it seems that those who have the skills are more than prepared to take an attractive offer elsewhere.

Solutions
Whilst there is undoubtedly a huge job to be done in attracting more young people into engineering jobs, both through University courses and apprenticeships, there are a number of changes that the industry can make in the short term, which will help attract and retain the best talent:

Be open minded
The defence industry can be quite reluctant to recruit from other industries and will often hold out for a candidate with exactly the right background and experience, rather than train somebody with similar skills from a different engineering background. But considering employees from other sectors will not only plug certain skills gaps and relieve overworked employees; the training and development investment should also engender loyalty in the new recruits. So it could be worth the extra investment.

Make use of HR
The HR department should be aware if there is a problem with recruitment and retention so it is important that they work with line managers and senior management in being a positive force for change. A proactive HR function can be instrumental in introducing talent and performance management practices, in addition to identifying potential issues before they arise. HR’s role in internal communication is also important in developing a distinctive organisational culture, both to attract candidates and encourage loyalty amongst current staff.

Be proactive, not reactive
It is easy to be reactive when it comes to retaining employees, waiting until an employee is about to leave before offering them any added benefits or incentives to stay. But greater success will be achieved through paying closer attention to what employees want and need throughout the employee lifecycle. This way they will think twice before being tempted by another offer.

Variety is the spice of life
Roles in the defence industry tend to involve working on longer term projects - usually between five and ten years due to the product lifecycle. Whilst this provides employee security, it can create its own problems, with the danger that employees will become disengaged and demoralised through carrying out the same work month after month.

The John Prodger Recruitment survey found that challenging and interesting work outstrips job security and salary, as the most important factor in a role, highlighting that this should be a focus area for employers. Whilst smaller companies tend to give their people more exposure to different aspects of a project, this can be an issue in larger companies, which usually employ people for much more specific tasks. Where possible, employers should try and be flexible and offer staff the opportunity to move around - this will not only keep them happy for longer but also improve the adaptability of the workforce as a whole.

Invest in training and development
Employees will also be kept motivated and engaged if they are being given opportunities to grow and develop a broader range of skills. Companies should regularly review development requirements, be responsive to requests for training and reward staff for successes in this area.

Review line managers
It is often said that people join companies and leave managers so in some cases it might be necessary to review management structures to root out any areas of weakness. If there is a high attrition rate in one particular area, this could indicate a problem with the manager.

Money isn’t everything
It is an old fashioned view that employees are simply motivated by their pay packet, yet companies often think that this alone will keep staff happy and engaged. Talented engineers are increasingly looking for career progression, training and development and work-life balance through flexible and remote working opportunities, so these should also be thrown into the benefits mix.

Invest in PR
The defence industry has had a lot of bad publicity and is increasingly under scrutiny due to new environmental pressures such as terrorism. As a result, companies must work even harder to ensure they communicate their key messages to potential and current employees, as well as the general public. Defence is one of the driving industries in the UK and can offer fantastic career opportunities on world class, innovative projects. Companies must embrace and communicate this in order to compete successfully in today’s jobs market.

Conclusion
Talented engineers with the right skills and experience are hard to come by and this situation looks set to continue. To stay ahead of the game, employers in the defence industry need to start thinking more carefully about how they attract and retain these much sought after candidates. The investment will pay off in the long run.

[1] Chartered Institute of Personnel and Development (CIPD)
[2]
Study by Henley Management College for The Royal Academy of Engineering, April 2006
[3] John Prodger Recruitment is part of the Jonathan Lee Group of Companies. For a copy of the salary survey, visit www.jprecruit.com

John Prodger Recruitment is well known as an established professional and executive recruitment agency focused on satisfying the needs of its Candidates and Clients in the Electronics, Defence, Aerospace, Medical Engineering, Rail and Manufacturing Industries, and a division of the Jonathan Lee Group of Companies.

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