Employers offering £500 sign up bonuses amid ‘staffing squeeze’
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East Midlands employers are going above and beyond to recruit new staff, offering enticing perks including bonuses of up to £500.
Businesses are facing the most severe shortage of job candidates on record due to the post-lockdown surge in the economy and Brexit, according to the Recruitment and Employment Confederation (REC).
But local firm Sky Recruitment Solutions says its clients are coming up with lucrative ways to attract the right candidates.
Sky, which has offices in Derby, Burton, Mansfield, Ripley, Huddersfield, and a sister white collar recruitment company called Capella Professional, based in Nottingham, is currently half-way through filling 200 jobs on behalf of online retailer Buy It Direct at its new 563,000 sq ft warehouse near Castle Donington.
Buy It Direct is offering a £500 attendance bonus, with half paid after eight weeks and the remainder after a second eight-week period.
Meanwhile, another of Sky’s clients, a Burton-on-Trent-based warehouse and distribution firm which supplies the crafters industry, which is looking to fill 50 picking and packing roles with general warehouse duties, has a £250 attendance bonus on offer if workers have less than three absences in the run-up to Christmas.
Another of Sky’s clients, TEX Plastics, in Allenton, Derby, which manufactures plastic components for life critical applications, electronic products and medical solutions, which has 20 vacancies, has a £25 weekly bonus based on attendance.
And a car manufacturer on Sky’s books, based in Foston, South Derbyshire, has increased its rates, with a bonus that is paid once workers go permanent. Ten to 15 production operatives are needed at the site.
David Torrington, managing director at Sky Recruitment Solutions said: “In 20 years, I have never seen anything like this in the sector, it is unparalleled. Never before have employers been offering such high incentives to encourage staff to join them. My concern is how businesses maintain this going forward. With higher rates of pay, there is a danger that these extra costs will be passed onto consumers.”
Beckie Elliott, Sky Recruitment Solutions’ business manager, said: “Most companies are now paying whatever they can to incentivise workers and motivate them to be able to stay.
“Obviously retention is important for them, but the turnover of staff is ridiculously high at the moment.”
Giving reasons for low retention rates, she added: “Workers have more of a choice now of where they are going to work, rather than how it used to be.
“They could start a job and the next day, they could be offered a different job for £2 more an hour.
“Clients are doing what they can – it’s really competitive, our role is to partner our clients to attract and retain the right staff
“We are trying to advise clients on the best approach to getting people through the door.”