Smaller companies forced to compete for London’s stretched talent pool

 
Louis Ashworth
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London workers
Many companies said they had to pay more than planned to secure high-skilled employees (Source: Getty)

More than four out of five London-based small- and medium-sized companies (SMEs) are struggling to find recruits with the skills the need – forcing many to increase investment and raise remuneration packages, a study has found.


In findings published as part of its 2019 edition salary guide, human resources firm Robert Half said six out of 10 businesses in London found themselves paying above the amount they had initially planned in order to secure a candidate they wanted, as they scrambled for tech-skilled employees.

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Chris Lawton, Robert Half’s director, said: “Technology and digitalisation is rapidly changing the London business landscape.”

“This, coupled with uncertainty around leaving the EU, means that businesses must adapt their recruitment strategies to ensure they are equipped with the right talent to keep up,” he said, adding such arrangements “will be key for London as it seeks to maintain its status as a global leader in financial and technological advancement.”


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The recruitment specialist said a widespread shortage of specialist skills had created a “buyer’s market” for those candidates who possessed with key skills.

Almost half (48 per cent) of the companies in London it surveyed said they had increased remuneration levels to secure the best-quality candidates, compared to 40 per cent across the UK.

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