Businesses should be selective in adopting AI for their processes
Almost 80% of UK companies report difficulty filling jobs according to analysis by the Manpower Group.
So is using AI (Artificial Intelligence) the answer to the skills shortage?
In some instances it may be.
Examples include automating CRM (Customer Relationship Management) systems, machine learning for data processing, and in cybersecurity in defending computer defences. AI is key to automating various routine processes in manufacturing.
Most of the above will be familiar to businesses and have already proven their worth but there is a new and much-hyped piece of AI which has been the focus of attention, and that is ChatGPT.
ChatGPT is an AI chatbot system released by OpenAI that answers any questions and can even compose poems.
It has been argued that it useful for generating creative ideas, providing summaries and writing first drafts. It can also produce large amounts of text with a quick response time, So, It can arguably automate routine tasks, provide personalised customer...
What can SMEs do to protect themselves from skills shortages?
BCC’s most recent update on the difficulties to find workers highlights shortages in several key areas.
The February 2023 update said:
“Attempted recruitment in Q4 remained virtually unchanged from the previous quarter, with 61% of firms looking to find staff (62% in Q3 2022).
“Overall, over eight in ten firms (82%) attempting to recruit reported recruitment difficulties, up from 76% in Q3.
“While the problem is persistent across all sectors, firms in the hospitality sector are most likely to face challenges when recruiting, with 87% reporting difficulties. This is closely followed by the manufacturing sector on 85%, and the construction sector; professional services; and public, education, health sector all on 83%.”
According to research from fintech provider Nucleus Commercial Finance 68% of SMES with up to 150 employees are concerned about staffing in 2023.
So what can SMEs that are already strapped for cash do to help themselves in the short and...
What perks do employees most value and how important are they?
It can be a challenge to recruit and retain the best staff, especially at the moment, but can offering perks really make a difference?
Online recruiters Glassdoor argues that many workers will tolerate less pay if other perks and benefits fill in the gap.
Among the top perks it lists are free bicycle repairs on site, a day off for Christmas shopping, four free weeks of holiday for four years work, free on-site dentistry and free day-care for new parents.
But although they may be appreciated how important are they?
It is argued that a benefits package can Improve workplace morale, reduce stress and associated staff absences, boost productivity, help set the tone for your company’s internal values and ethos and can also both reduce staff turnover by helping to retain existing staff and make recruiting top talent easier.
But to be truly effective perks and benefits must offer something employees will actually value and which will help them.
In this context perhaps arguably...
There are good reasons to employ older workers
It has been calculated that there are around 300,000 fewer people in the workforce than there were before the pandemic.
At the same time as employers complain about recruitment difficulties, research carried out in the autumn of 2022 by CMI (Chartered Management Institute) found that there was considerable reluctance to consider taking on older workers.
In a survey of more than 1,000 managers working in UK businesses just four out of 10 (42%) were open "to a large extent" to hiring people aged between 50 and 64 while just 18% of managers said they were open to a large extent to hiring people aged over 65.
Ann Francke, chief executive of the CMI, said the findings pointed to cultural and leadership failings in businesses of all sizes.
Yet there are many benefits to employing older workers.
Older workers are likely to be more settled as well as having better problem-solving, productivity and output, and smarter decision-making skills.
They are usually able and willing to learn new...
How can business sustainability help with recruitment?
The Harvard Business School definition of business sustainability is twofold.
It says there are two things that should be measured for business sustainability. They are the effect a business has on the environment, and the effect a business has on society, with the goal of sustainable practice being to have a positive impact on at least one of those areas.
At the moment businesses are reporting difficulty in recruiting suitable candidates so anything that can help to increase applications is important.
This is where sustainability comes in.
Adobe recently surveyed its US workforce and found that almost a third of people said they would only work for an employer that prioritised sustainability.
About a third of employees thought it would boost productivity rates (35 percent), position their company as a leader (31 percent), and open more opportunities for innovation (37 percent).
Forty-three percent thought it would improve workplace culture.
Albeit this is just a snapshot of...
Keep your valued employees by giving them a stake in the business
The numbers of employee-owned businesses have more than doubled in a year, according to the Employee Ownership Association (EOA).
There are now more than 1,000 Employee Owned businesses in the UK, it says, compared with 500 in 2020.
As trading conditions become increasingly difficult thanks to a combination of factors, including the war in Ukraine, post-Covid supply chain disruption and the difficulty in recruiting skilled people, employers have turned to EOTs (Employee Owned Trusts) as a way of both spreading the risks in business and in keeping and rewarding staff for loyalty during the pandemic.
There are also tax benefits from turning a business into an EOT.
But there are a number of things to consider in structuring and formalising an EOT and it is important to understand exactly what a business is getting into.
The questions, according to accountants Price Bailey include:
- What is the commercial purpose of an EOT?
- Is it suitable for my business?
- Who will be the controlling...
Are there situations where process automation produces a worse result?
A shortage of candidates amid a high demand for staff has for some time been a complaint made by businesses.
The competition for suitable people has led to their offering higher starting salaries for new staff.
But the question has to be asked: how are they going about the recruitment process?
For several years now, candidates have been assessed using AI (Artificial Intelligence).
This method has become increasingly sophisticated as candidates are now being asked to answer standard interview questions in front of a camera while the software behind it notes thousands of barely perceptible changes to posture, facial expression, vocal tone and word choice.
Some companies selling AI recruitment tools even offer a reactive, AI-powered chatbot that will conduct the entire interview process.
But there have been examples of eminently qualified people being rejected at the first hurdle by these methods and in one recently-reported case and employee with a long track record of work with...
Are you a good employer?
It may not be high on your list of priorities with Furlough ending and the struggle to survive and return to peak activity foremost in your mind.
Even if you have had to make some people redundant your reputation as an employer matters.
As your business hopefully returns to more normal levels of activity there may come a time when you will need to recruit more people, and that is going to be a challenge when there is a shortage of workers in many sectors.
While redundancy may feel like a brutal process to those on the receiving end, how it has been handled can make all the difference to your business reputation.
Did you keep staff fully informed? Did you follow all the correct procedures? Did those affected feel that you cared about them and their concerns?
K2 explained how to do it properly in this article:
But we were reminded that there...
Is A Lack Of People With Suitable Digital Skills Affecting Your Business Future?
Fewer than half of British employers believe young people are leaving full-time education with sufficient advanced digital skills, and 76% of firms think a lack of digital skills will hit their profitability.
The Learning & Work Institute also calculated that the number of young people taking IT at GCSE has gone down by 40% since 2015.
It has been predicted that the future of successful business post pandemic will be in the increasing adoption of robotics, AI and remote digital solutions such as cloud storage and video conferencing.
But is it fair for employers to employers to place responsibility on the education sector? In a fast-changing landscape, how do schools and colleges judge exactly what practical digital knowledge will be needed, especially in such a diverse sector?
There is also an argument that at least some of those skills are best learned “on the job” rather than in an exclusively academic environment.
Should employers become more hands on in working...
Retrain to do what? The jobs of the future
A national government retraining scheme was proposed in July last year to help those workers whose jobs will become obsolete because of Artificial Intelligence (AI) and automation.
Whether it will materialise following the Brexit mayhem and subsequent election remains to be seen.
Research by Oxford Economics has found that 1.7 million manufacturing jobs have been lost to robots worldwide since 2000, including 400,000 in Europe, 260,000 in the US, and 550,000 in China and that a further 20 million manufacturing jobs will be obsolete by 2030 although most of these will be abroad.
There is no doubt that the future world of work, especially, but not only, in the manufacturing sector will look very different.
The drive towards aver more automation may conflict with concerns for the future of the planet and the environment but both will doubtless mean a radical rethink of economies, especially those that are dependent on consumer activity.
Demographics too will play their part as many of...