The second factor that most affects businesses on Ibiza and Formentera is “the difficulty in finding qualified personnel”. The fourth, “the cost of hiring staff”, according to the ‘2021 Activity Survey’ prepared by the Petita i Mitjana Empresa d’Ibiza i Formentera (Pimeef) and released yesterday at a press conference. And both factors have a common denominator: housing is sky high. That is if you can find a vacancy. Alfonso Rojo, president of Pimeef, assures that the businessowners of Ibiza and Formentera have begun to find them: “There is housing”, he affirms. But they are not on the market, they are hidden. Given this is one of the biggest problems in attracting workers, the members of Pimeef have decided to be the ones who, as was done in the past, provide housing for their workers. They have searched and have come across something they did not expect: there are empty houses, but the owners do not rent them to workers “out of fear,” says Rojo.
“We are being rented housing by people who have them empty because they are afraid that they will be re-let and eight will move in there to live, or that later they will not be able to get rid of them,” Rojo explains. “There is housing,” he insists.
They are afraid, says the president of the Pimeef, the non-payment of rent, but also that their properties will turn into a boarding house and that, finishing their contract at the end of the season, they will refuse to leave. But that fear disappears, according to Rojo, when a company offers to rent it for its staff. Solvency, the assurance that the monthly installments will be paid and that, in the even of damage or if the tenants do not vacate the house at the end of the stipulated period, the companies will solve the problems that arise or pay for the damages, are the factors that are allowing them to decide where their employees will stay this season. “We are being rented housing by people who have them empty because they are afraid that they will be re-let and eight will move in there to live, or that later they will not be able to get rid of them,” Rojo explains. “There is housing,” he insists. Another thing is that they are on the market.
The owners make them available to employers either because they already know them personally or because they are confident of their “solvency”: “It is not the same to claim from a company as from a worker. Renting them to employers reassures them”, warns Àngels Marí, secretary general of Pimeef.
Of course, they are charged “at market price”, or in other words, very expensive: from 800 euros for those with only one room, from 1,200 for those with two rooms, from 1,500 for those with three rooms… And the worker does not get it for free: the rent is included in the payroll as payment in kind, says Rojo, who states that in the search for places to accommodate their staff they have encountered “a lot of underground economy”, “a lot of black market” and “mafias” that take advantage of this situation.
Employers have started to act because “we can’t look the other way or wait for the Administration to solve this”
Marí points out that this search has become a matter of “job security”. Many workers do not perform because they are forced to sleep “inside their cars”, or end up staying in “garages and farm tack rooms”. And that “reduces their productivity,” says Rojo, who recounts the case of a worker who was robbed by one (or perhaps several) of his six roommates. Employers have begun to act because “you can’t look the other way or wait for the Administration to solve this”. Next week they will meet with the unions to explain the difficulties they are facing and how they plan to resolve them, but essentially to let them know that they are not turning their backs on this issue.
Employers on Ibiza Keeping an eye on the war
Despite the war in Ukraine being a new twist in the deep economic crisis, Rojo is confident that this year will see an increase in hiring, as, according to the report presented, almost 41% of those surveyed say they will do so. 56% say they are likely to maintain staff levels, and almost 3% say they are likely to reduce staffing this season. Of the latter, 13% say that the lack of housing is one of the predominant factors for not increasing the workforce; 20%, the lack of training.
“Whoever waits to hire, will have problems to fill their workforce”, warns Rojo
If the war does not spread “catastrophically” to Europe and soon subsides, Rojo believes that employers will not be afraid to hire, something they began to do this year much earlier than expected after finding in 2020 that they could not find enough labour: former workers opted to accept offers on the mainland because neither the length of the contract nor the costs of living on Ibiza were profitable for them. “Whoever waits to hire, will have problems to fill their workforce”, warns Rojo.
The main factor affecting Pitiusan businesses in 2021 was the evolution of the pandemic, according to the survey of 230 companies. Even so, last year “there were clear signs of economic recovery“, says Àngels Marí. It was a very good year for almost 7% of those surveyed, good for 30% and normal for just over 37%. But if we compare it with the years before the pandemic, the percentage of those who think it was bad (24%) or very bad (1.9%) is much higher. The results were therefore “more positive than in 2020”, despite which Marí believes that we should not give a “triumphant message” and warns that the sales data show that “the terrible results of 2020 were still carried over into 2021”. Compared to the previous year, sales increased in 55% of businesses, decreased in 24% and remained unchanged in 20.5%.
Price increases
The largest sales increases were recorded in commerce (73%) and hospitality (64%), and to a lesser extent (38%) in industry, transport and construction. In the group that increased its sales, almost 69% experienced an increase of more than 11%. And in the group that saw their sales decline, more than 87% had decreases of more than 11%. According to Àngels Marí, this last percentage is worrying because “it will be difficult for these companies to hold on in 2022”.
By municipalities, the best performance was in Vila and Sant Antoni, while the worst was in Santa Eulària and Sant Josep.
This time, “the crisis has not caught the Pitiusas businesses off-guard”. Perhaps thanks to the proximity of the previous crisis, which broke out in 2008. After what happened then, the businessowners had their businesses “in good shape”
The general secretary of the Pimeef points out that, this time, “the crisis has not caught the Pituses businesses off-guard”. Perhaps thanks to the proximity of the previous crisis, which broke out in 2008. After what happened then, the businessowners had their businesses “in good shape”. from that crisis,” says Vicent Prats, director of banking and companies of Sabadell, “they learned that you have to save for when the bad times come”.
According to the survey, 59% of respondents said they did not need a loan in 2021, almost 48% did not request subsidies from public administrations, and 69% did not request public or private financing. Some entrepreneurs pointed out “the difficulty of accessing aid due to excessive requirements”, while others pointed out that there was no aid for their sector. In 2021, 28.8% of the companies presented a temporary lay-off plan. These ERTE affected 25% of the workforce in 52% of the cases, and more than 75% in 11.6% of the companies.
“In 2021, the employer was generous and did not raise prices [63% of respondents did not]. But in 2022 they will have no choice, otherwise their business will be unviable”
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