Three quarters of businesses concerned about finding enough staff to fill Christmas vacancies

Three-quarters (75%) of businesses are concerned about finding enough extra staff for Christmas, according to new research from Indeed Flex, an online platform for flexible and temporary work.

The survey of 1,000 UK SMEs found that nearly four in five (76%) are expecting a busier festive period than in 2023, with nearly two-thirds (65%) looking to recruit more staff than they did last Christmas.

The increased demand for workers this Christmas explains why as many as 58% of firms are starting the hiring process earlier than last year.

Four in five (80%) businesses say they are recruiting for full-time positions, while 27% need part-time staff. There is also strong demand for full-time (30%) and part-time temporary workers (26%).

Furthermore, despite the Government’s plan to ban zero-hour contracts, two thirds (66%) of larger firms surveyed say they plan to offer them to new employees this Christmas.

When asked about their biggest recruitment challenge over the festive season, nearly half (48%) of all firms said finding the right staff, while 40% said managing employees’ holiday requests.

Increased salary costs (38%), organising staff rotas and shift patterns (36%), and retaining staff (32%) are some of the other key issues.

The importance of solving these recruitment challenges is highlighted by the fact that over three-quarters (77%) of businesses say the Christmas period is their most important sales period of the year.

Businesses are feeling bullish about their prospects for the festive period with four in five (80%) expecting an increase in sales compared with last year.

Nearly a quarter (22%) of firms are forecasting an increase of more than 50% this Christmas.

Novo Constare, CEO and Co-founder of Indeed Flex, said, “Businesses are feeling optimistic about trading activity this Christmas, but staffing shortages are a concern.

“The end of the calendar year is an important period for a lot of firms and they will want to maximise their sales performance by ensuring they have the strongest possible team in place.

“While many employers are looking to fill full-time positions, temporary staff could be an ideal solution if they’re unable to find the right candidates.

“Hiring extra seasonal workers will address immediate labour shortages and ensure that firms are able to take full advantage of the busy festive season.

“This approach may also help to ease financial pressures heading into next year, when the increase in employers’ National Insurance contributions will take effect.

“The tax hike will be a shock to many businesses and it means they will have to manage staff costs even more tightly to keep a lid on expenditure and protect profits.”