What’s Causing the Hiring Crisis? And What’s the Solution?

To succeed as independent training facilities, we know we need the best people on our teams. But finding quality candidates who are willing to stick around for the long haul is becoming increasingly difficult.

The struggle isn’t limited to the fitness industry: Britain is facing a labour shortage of around 1.3 million workers, with Ireland close behind. At the end of July there were roughly 180,000 unfilled vacancies in the hospitality sector – a 30% increase in the last 12 months.

Why are good recruits so hard to find?

  • People are retiring early (and not being replaced)

Older workers took lockdowns and the risk of contracting covid-19 as their cue to retire early. Strong financial markets and government handouts boosted personal savings and pension plans – opening up more senior vacancies for the following generation.

  • Flexible working is setting new expectations

Meanwhile, many of the younger market (who are more likely to be able to afford a career break) have shifted their priorities in the pandemic. Surveys show that wage alone isn’t enough to make up for sacrificing the flexibility to spend time with family.  

  • Resignations are rising

In a survey by McKinsey, more than half of employers across various sectors reported an increased number of resignations than in previous years. When these leavers were surveyed, 36% said they left without having their next pay packet lined up – and almost half said that ‘family care’ was a significant factor in their decision.

  • ‘Job-hopping’ is the new normal

In Britain, the share of workers changing positions in the third quarter of 2022 rose to a new high of 3.2%, marking the shift to a job-hopping ‘portfolio’ approach to employment. Remote working opens up opportunities to a global market – and workers who had for years put up with low pay, or jobs they didn’t like, have seen the pandemic as a way into a different role or to leave the workforce altogether. And although there’s likely to be an eventual redistribution of the labour market, the power dynamic will lie in the hands of the employee for some time yet. 

  • More working-age people are ‘opting out’ of employment

Though UK unemployment is at its lowest rate since 1974 (3.6%), the number of people who aren’t in work (and aren’t looking to be) is growing. This “economically inactive” group accounts for one in five of the working-age population – an increase of 1.2% since before the pandemic. That’s more than one in five people aged 16 to 64 who have completely removed themselves from the labour market.  

As employers, what can we do?

With some of the factors causing the hiring factors, now let’s think about what we can do as employers to ensure we’re getting the best people for our businesses. 

  • Treat recruitment like sales

In the same way we market and sell our product to clients, we need to think of the recruitment process as a sales effort, too. Start by creating a compelling employer brand that attracts talent by virtue of its reputation. Think of sought-after employer brands like of Google, Apple, Netflix, or Zappos – what makes them destination companies for job-seekers? Once your brand is established, develop credibility and reach to draw candidates to you, then sell them the role.

  • Share your social mission

The research is conclusive: having a social mission or charitable element to your business makes you a more attractive prospect for potential recruits. A recent survey revealed that 77% of consumers are motivated to purchase from companies committed to making the world a better place, while 73% of investors state that efforts to improve the environment and society contribute to their investment decisions.

  • Incentivise the process 

As an employer, ask yourself: what are you doing to make your business more attractive to potential recruits? Could you have an overtime ‘pot’ for motivated employees to tap into, to top up their earnings? Can you offer a performance-related bonus scheme for staff that deliver on their key performance objectives? Could certain roles have an element of commission-based earnings? On an even more fundamental level, are you offering fair working hours, a competitive base salary, and CPD opportunities for your staff?

  • Think values fit, not qualifications

If you’re struggling to find a candidate who’s ready to hit the ground running, you may need to cast the net wider and consider recruits from outside the industry. In my experience, the staff who have been most successful in the business were hired for their attitude and values, not how impressive their qualifications looked on paper. Consider targeting people who have a passion for fitness but aren’t necessarily experienced or qualified for the role upfront. These candidates will represent more of an investment on your part (it will take time, money, and effort to get them up to speed technically) but are more ‘mouldable’ to your company’s way of doing things.

  • ‘Anti-sell’ your candidates

Through the JCV Leadership Group and in my other consultancy work, I’m coming across a lot of gym owners that are recruiting staff, only to have them drop out weeks or months into their new role. To avoid this disruption, make sure that your onboarding process is rigorous to weed out any ‘wobbly’ recruits – make sure you’ve got 100% buy-in from the get-go and build on a foundation of commitment that lasts.

  • Have flex in your recruitment process

You may have an internship or onboarding programme for new hires that’s simply won’t fly in the current labour market. Evaluate the stages (and remuneration) in this process and make sure they’re attractive for prospective recruits.

  • Create a proactive talent pipeline

Waiting until you’re desperate for a hire is not the right time to start the recruitment process. Again, think of the client journey as a parallel: have a steady stream of leads (potential recruits) feeding the business’ staffing needs – ready to step in as the business grows.

None of what I’m saying here is groundbreaking – the rules haven’t changed. But while we aren’t in a position as an industry to raise our rates significantly in line with the cost of living (and pass this onto staff) we need to be more proactive than ever to attract people to work for us in other ways.

Create a vibrant business with a compelling development pathway that offers real career growth for your employees. Give staff a community to buy into, with a social element and regular events to add spice to their day-to-day. And above all, be strategic about how to fulfil your staffing needs before you get to a point of overwhelm.

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