Research conducted by Hitachi Capital, with healthcare recruitment companies, has shown the healthcare sector is facing a growing skills crisis, causing temporary workers to snap up job opportunities.
The research showed that a mismatch of skills and job criteria was the biggest challenge the sector is facing and as a direct result, 94% of recruitment companies involved in the survey have seen a growing preference for contract and temporary workers.
With demand for healthcare services rising and the number of specialist candidates on the decline, Hitachi are urging healthcare companies to act now to avoid a potential cash crisis and keep a cushion of liquidity within the business.
The research revealed that the care industry is set to struggle due to the gap between the number of skilled workers and available roles has created trouble for healthcare companies.
Speaking about the research Steve Smith, Managing Director of Hitachi Capital Invoice Finance, commented: “Nursing is a particular area which has been hit hard by the skills shortage. Also from April next year, new immigration laws will mean that non-EU nurses must earn over £35,000 per annum or they will be told to leave the country as part of the government’s drive to control migration.
“At a time when demand is increasing for health services, this could cause chaos for providers. 92% of specialist healthcare recruitment companies believe that changing immigration laws will cause a further reduction in available candidates, adding yet further pressures and financial strain.”
Following the research Hitachi Capital have encouraged those in the healthcare market to review their available finance options and seek alternative routes to cover overheads and weekly wages. Steve Smith added: “For many small care home providers that often live from invoice to invoice, now is the time to act to preserve service levels. Just one late payment from a customer can have a knock-on effect on an organisation’s ability to pay staff on time and provide adequate care to patients.
“At a time of great uncertainty, it is those organisations that ride out the storm that will be in the best position to potentially grow their service offering and begin to attract more skilled, retained staff in the future. Whilst demand for care continues to grow, the market conditions persist to hold the growth of many healthcare organisations back. Although the current outlook is bleak, providers must not let an ability to manage costs and forecast demand hamper the service levels patients receive and potential new contract opportunities. It is those providers that take action now who will capitalise on increased demand, allowing them to plan ahead with greater certainty.”
