WHAT’S NEW?
RECRUITMENT AND RISING COSTS CONTINUE TO BLIGHT SOCIAL CARE
COMPANIES Workforce challenges, combined with the rising costs of running a social care business, are two of the biggest pressures facing the sector, according to new research.
The Social Care Snapshot 2024 – a state of the industry report aimed at providing an insight into the challenges and opportunities that exist across children’s and adult social care – has revealed that recruitment and retention remain a significant priority for the sector, with more than a third of respondents (36%) admitting that they cannot hire enough people with the right skills.
The national picture shows that immigration remains the biggest workforce issue, more than four years aſter Brexit. Over a third of businesses (37%) stated that immigration restrictions stop them from recruiting enough people. This is compounded by the cost of recruitment, the high use of agency staff, as well as a Covid-19 hangover that continues to impact the jobs market. The difficulty of replacing staff aſter the pandemic spikes, in particular in the north-west at 60%.
Yannis Loucopoulos, CEO at Tristone Healthcare, which commissioned the The Social Care Snapshot 2024, commented: “The reality is, social care has lost a lot of good people to other sectors in recent years, and needs to regain a competitive advantage when it comes to talent and skills – a point not lost on a quarter of social care businesses that have placed investing in people as their biggest investment priority.
“Previous governments have tried and failed to tackle the issue. That’s why sector leaders believe that it’s essential Labour listens to the workforce challenges being faced by the industry and that politicians work collaboratively with business leaders to ensure it becomes an attractive career prospect for future employees. This
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includes ensuring that qualifications are robust and accessible, with more apprenticeships and training and development on offer.”
Along with other sectors, managing the costs of running a business is also a significant concern to social care providers, according to the survey of more than 100 industry leaders. The national picture shows that managing costs is currently the biggest challenge facing the sector (35%), closely followed by accessing new sources of capital to fund growth (34%). This is mirrored across several regions in the UK, including thenorth-west, the Midlands, the east of England and the south- east, where 67% of respondents said that increased operating costs was the greatest pressure facing their business over the next six months – the highest of any region.
Loucopoulos continued: “Social care providers have faced a litany of economic and political pressures over the last few years, driven by the Covid-19 pandemic and exacerbated by the cost-of-living crisis, while other external factors have contributed to creating a strained outlook that has been instrumental in how businesses function.
“While inflationary pressures have eased in recent months, the damage
has already been done for many, with more than a quarter of respondents (29%) admitting that this is the biggest challenge facing their business.”
With a new government now firmly in place, the state of the industry report has also highlighted a renewed sense of hope and expectation, with many seeing it as an opportunity to refine business priorities and approach the next six to 12 months with renewed purpose. Central to that is improving the outcomes of service users. More than a third of respondents (34%) ranked this as their top priority, peaking at 60% in both the north-west and the east of England.
Loucopoulos concluded: “This is arguably the most important objective in social care, regardless of the political or economic backdrop; however, what is interesting to note is the added desire to grow and expand, with raising new finance for growth (32%) and opening new services (32%) making up the top three.
“What is reassuring to see is, despite the ongoing pressures and questions surrounding profits, investment intentions are high, with businesses both nationally and regionally planning to inject capital in the next 12 months to meet growth ambitions.”
https://tristonehealthcare.co.uk www.tomorrowscare.co.uk
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