While the £2 billion investment earmarked by government for the automotive sector in the Budget yesterday (Thursday 30th October 2024) will help the industry make the transition to full electrification, Easy2Recruit, the agency helping garages hire overseas talent, says the key to sustainable growth is investment in overall training, which will need to increase if the skills crisis is to end.
In her first Budget as Chancellor of the Exchequer, Rachel Reeves announced the £2 billion investment as part of the government’s modern industry strategy. “This funding will be vital to help the sector move towards full electrification, but it is only part of the answer for the skills crisis,” said Easy2Recruit founder and CEO Ambi Singh.
Further support for education was also part of the mix, including a £300 million investment in further education. “For the sector to be able to support the growing EV car parc,” said Ambi, “what will count in the long term is continuing investment in training, and measures to encourage more young people to enter the sector, making this a step in the right direction.”
An increase in the minimum wage for over-21s was announced too, which will go up from £11.44 to £12.21 per hour from April. At the same time, the hourly rate for 18 to 20-year-olds will go up from £8.60 to £10. Meanwhile, Employment Allowance, which enables small companies to reduce their National Insurance liability, will rise from £5,000 to £10,500. “While garages will need to pay some staff more, there is some good news too with Employment Allowance going up too,” said Ambi.
“Ultimately,” said Ambi, “this reflects the reality that the sector will need to invest in growing the next generation of techs at a much higher rate than has been the case in recent years if it wants to close the skills gap.”
With home-grown talent still in short supply, Easy2Recruit has been helping the sector by making it possible to bring techs in from overseas. The company helps garages to recruit technicians from the United Arab Emirates (UAE) and India. It manages the whole process for the garage and provides all the pastoral care for the overseas technician, from the visa application to booking the flight to arranging accommodation.
Alongside the core offering, Easy2Recruit has also launched Student2Skill, which pairs international students studying in the UK with garages looking for part-time workers. Then there is Easy2Recruit’s Student2Skill international graduate placement programme, which recently saw its first candidate start work. Easy2Recruit is also the authorised recruitment supplier for the National Body Repair Association (NBRA).
“Investment is key if the independent garage sector is going to catch up with the skills gap and close it,” said Ambi, “and the industry needs to work with government to make this happen.”
To find out more about Easy2Recruit’s staffing solutions, including the Student2Skill initiative and its graduate programme, garages should visit: www.easy2recruit.co.uk.