Three-quarters of nurseries that said they experienced issues with recruitment, in Ceeda Research's Early Years Workforce Survey 2019, reported a more stressful working environment (77 per cent).
The research also warns that the struggle to fill vacancies is impacting on the number of childcare places settings can offer, leading to longer waiting lists.
Government plans for a points-based immigration system will exacerbate the situation further, as more than 9,000 nursery workers are EU nationals and nursery workers are not listed on the Government’s current list of shortage occupations, the survey says.
Moreover, average pay would need to increase by nearly 50 per cent for early years staff to meet the general earnings threshold.
The survey of more than 550 nurseries and pre-schools has found that problems with recruitment show no signs of improving. This is despite year-on-year growth of 4 per cent in the number of Level 3 qualifications being awarded.
More than one in four settings (29 per cent) were actively recruiting at the time of the survey for 14,700 vacancies. Most vacancies were for Level 3 staff, a total of 7,945 posts.
Problems with recruitment and retention are also having an impact on childcare places.
Two-fifths of settings with hard to fill vacancies (38 per cent) say staff shortages are leading to longer waiting lists for childcare places, up from 20 per cent in 2018. Almost a third say they are working below their preferred staff-child ratios, within statutory limits (31 per cent), up from 18 per cent on 2018.
A points-based immigration system in the UK would also impact the sector. Findings show that 2.75 per cent of the early years workforce in non-domestic Ofsted registered provision (i.e nurseries and pre-schools) are EU nationals, an estimated, 9,150 staff.
London has the greatest reliance on EU nationals at 8.9 per cent of all employees, followed by the South East at 2.7 per cent.
From January 2021 the Government’s points-based immigration system will mean that skilled workers qualified to a minimum of Level 3 (A level or equivalent) will require a job offer and minimum salary of £25,600.
For specific shortage occupations the salary level is or £20,480.
However, early years and childcare is not on this list, and with average pay of £9.00 per hour for Level 3 qualified staff (April 2019), salaries would need to increase by 17 per cent to meet the lower threshold for designated skill-shortage occupations, and by 47 per cent to reach the general earnings threshold.
The survey findings are based on in depth research with 563 nurseries and pre-schools on the ‘About Early Years’ research panel between July and October 2019. Setting owners and managers gave detailed insight on their workforce, spanning 8,603 employees. The report also includes the views of 2,605 early years staff.
Dr Jo Verrill, managing director at Ceeda said, ‘Sadly these latest findings are all too familiar. The case for change has long been made, and early years staff understandably want to see a shift from evidence to action.
‘There is a clear, evidenced, need for a step-change in the status and rewards of early years careers. This will require radical change in the way people think about and value early education, matched by commensurate levels of public sector investment.
‘We are delighted to be part of the recently launched Early Years Workforce Commission, which will focus on delivering a workforce strategy that can achieve lasting change.’
Sector reaction
Neil Leitch, chief executive at the Early Years Alliance, said, ‘Early years practitioners play a vital role in children’s development and learning so while the news that settings are struggling to recruit suitable staff will come as no surprise to anyone working in the sector, these figures still make for stark reading.
‘Such challenges not only put the current workforce under growing pressure, but it also increase recruitment costs and restrict business growth at a time when the sector is already struggling with stagnant funding rates and rising costs elsewhere.
‘Early years practitioners are dedicated and passionate about their work, and their wages should reflect the important role that they play - but this is something that will only be possible with an increase in funding rates. As such, discussions about pay, recruitment and retention cannot be held in isolation, but rather, must form part of the wider debate about the need for far greater investment into the early years sector, both now and in the long-term.’
Impact on business
Recruitment challenges continue to inflate operating costs, putting rising pressure on pay in settings with posts that are difficult to fill (50 per cent), as well as increasing spending on recruitment (53 per cent).
These added financial burdens come at a time when the sector is facing a forecast funding deficit of £824m in 2020/21, based on modest assessments of pay inflation.
Ceeda said it would be carrying out research this spring to establish the true impact of above inflation rises to the National Living Wage and National Minimum Wage rates.
Staff turnover shows no change on the 2018 average of 15 per cent, and while pay looms large in the list of drivers, it is not the only factor. Those actively job-hunting are also seeking better career progression (65 per cent) and greater freedom to use their initiative (57 per cent) and potential to the full (55 per cent).
What owners and managers said
The survey also found that many respondents felt a need for greater recognition and understanding of sector contribution from Government and parents. While 98 per cent of setting owners and managers agree with the statement: ‘I view myself as a professional worker,’ over two-thirds disagree that the Government (70 per cent) and general public (67 per cent) share the same view.
Two-thirds of setting owners and managers backed a professional sector body as a means to boost sector pay and status.
In response to the question, ‘What in your view would help to increase the status and rewards of a career in the early education and childcare sector?’, comments from owners and managers included:
- ‘To change the working name from nursery nurse, to childcare professional & to upgrade the understanding of the public; that we are just as important as teachers.’
- ‘Making the EYPS/EYTS equivalent to QTS. Increasing the funding available to the Early Years sector, so Early Years teachers and practitioners might be on salary bands similar to teachers in Primary and Secondary sectors.’
- ‘Better pay and higher standards of people entering early years. For too many years people have seen it as 'babysitting' by people not intelligent enough to do anything else. We should call ourselves educators not practitioners. Teachers are seen as professionals, yet we are doing the same if not a more difficult role.’
- ‘An increase in 3 & 4 year old funding, allowing us to pay staff realistically for the level of dedication and professionalism they provide on a day-to-day basis for the children of our future.’
- ‘Better funding rates so we could pay what staff deserve, recognition from the Government etc of the vital role childcare professionals have, the public having a better understanding - it's not 'just playing with children', removal of the word 'free' from funded education - this devalues our profession.’
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The full research report is available here