ALMOST half of Northamptonshire businesses say recruiting the right people is key to driving business growth over the next 12 months, despite some uncertainty ahead, according to a new poll from financial and business advisers Grant Thornton.
The survey of more than 100 local companies was conducted at the 2017 Northamptonshire Limited event, when Grant Thornton unveiled the results of its annual analysis of the county’s 100 top performing businesses. This year’s study showed an increase in turnover, profitability and employment over the past year.
The poll results reveal that hiring new talent will be the most important factor for local businesses to support their growth over the coming year (42 per cent). This is followed by investing in new technologies (21 per cent), acquisitions (16 per cent), increasing capital expenditure (12 per cent) and growing exports, driven by the lower value of the pound (nine per cent).
However, the survey suggests that growth will be achieved against a more challenging environment with more than half of businesses questioned (59 per cent) stating that current business conditions are more difficult or the same than 12 months ago. A further 52 per cent of firms highlighted Brexit and subsequent developments as having an effect on their strategic planning.
Commenting on the poll findings, Mike Hughes of Grant Thornton’s Northampton office, said: “The Northamptonshire economy is in good shape with many ambitious businesses making positive plans to expand further through significant investment. In particular, we are seeing a real focus on recruitment as a key driver for growth. Despite some uncertainty over current business conditions and the long term impact of Brexit, firms here in the county remain resilient and are taking a ‘business as usual’ approach.”
However, businesses planning to invest in new staff continue to face tough competition due to the ongoing skills shortage in Northamptonshire and across the UK as a whole.
The poll results highlight that when it comes to recruitment, a deficit of individuals with the right skills or qualifications is by far the most pressing issue (41 per cent) followed by local availability of talent (28 per cent). Businesses also acknowledged they had a role to play in overcoming the issue.
Mike added: “Businesses are eager to recruit but the skills shortage is making it difficult for them to find the right people with the right skills to take their company forward. This is creating significant competition in the employment market as firms battle for the best talent.
“To succeed, firms need to offer strong incentives to employees to both recruit and retain skilled people. This doesn’t have to be confined to wage rises but can also include other work benefits such as flexible working hours and clear career prospects.
“Businesses can also take advantage of the new Apprenticeship Levy which came into force earlier this year and draw on the available funding to help invest in the next generation of talent coming through.”
