Employers intend to invest in their teams

Two separate surveys highlight employers’ plans to invest in their teams; regardless of their economic expectations…

Survey 1: employers set to invest in new employees

Source: REC

Our first survey actually comes from our accrediting body, the REC. Confidence in the UK economy appears ‘negative’ for its fourth consecutive month. In figure terms, this equates to a survey score of -14.

However, despite this, hiring and investment plans remain positive and have even increased by a percentage point over the past month. Taking this particular score to +16.

  • 48% of businesses looking to hire permanent employees are worried that there will not be enough candidates available (+6%).
  • Likewise, 53% of those hoping to grow their temporary headcount are concerned about sourcing enough skilled staff.
  • The marketing, media and creative sectors are among the most affected by the skills shortage.
  • Overall, the number of companies planning to recruit agency staff within a short-term time frame has increased by 3% since October (to a total score of +19).

Neil Carberry of the REC suggests Brits are displaying their ‘pragmatic best’ in spite of their wider economic concerns – and are set to ‘invest in their own businesses to meet demand’.

These attitudes clearly reflect those of other sources, as recently discussed.

Survey 2: employers will continue to invest in staff benefits

Source: The CIPD via People Management

Looking to the next two years, most businesses (97%) additionally intend to either maintain or increase their employee benefits schemes.

  • 81% plan to spend the same amount.
  • 16% intend to increase their spend in this area.
  • Businesses predominantly wish to focus on professional development benefits (43%), including mentoring and secondments.
  • This is followed by health and wellbeing incentives, such as sick pay (29%).
  • 25% will mainly focus on financial schemes, including pensions and debt-related advice.

Once again, these figures are deemed promising when considering external economic factors.

Charles Cotton from the REC praises businesses for their efforts. He says ‘spending in these areas can help improve employee performance, and ultimately corporate performance.’

The two news items are extremely closely related, with benefits packages also providing valuable staff attraction tools.

Benefits also appeared in our last post, as we explored which Christmas gifts employees most hope to receive.

Looking to recruit permanent or temporary staff? Call the office on 01225 313130. Candidates can apply for new jobs via the website, or upload a CV as a general applicant

Employer confidence increases!

Employer confidence is finally looking up. So, how will this affect your job search or recruitment plans?

Good news for employer confidence

Some of you (with incredible memories!) may recall us discussing reduced employer confidence among the recruitment predictions for 2018.

The Recruiting Times first raised this prediction – and it’s the Recruiting Times who also shared today’s stats…

  • Almost a third (30%) of employers believe the UK economy is improving. This marks the first positive reading since August 2017.
  • 32% of businesses additionally predict confidence rates will further rise.

What does this change?

  • An increasing number of businesses say they are looking to make recruitment and investment plans.
  • Yet a certain level of uncertainty around permanent recruitment remains. This underpins the 41% of companies using temporary staff at this time. A figure that has also increased (by 9%) over the past year.
  • As recently discussed, national starting pay rates have also risen as employers face greater recruitment competition.

And how do employer confidence levels affect you?

  • As a job-seeker: greater employer confidence tends to result in a greater volume of vacancies. Of course, these are national stats covering all sectors, so you will want to keep a close eye on what’s happening within your own industry. Our Jobs page is regularly updated with the latest roles. Word of increased vacancies can lure out hibernating job-seekers, meaning you won’t want to rest on your laurels and assume the job is yours! Make sure your strategy is up to scratch (and you’re not taking a scattergun approach to your search!).
  • As an employer: again, these are national stats. However, you might want to take a quick (and regular!) look at what your competitors are up to. After all, you don’t want them to snap up the best staff in your field before you get started. As Tom Hadley, the REC’s Director of Policy, explains, concerns regarding the skills gap and candidate shortages remain. This means staff attraction has to be at the fore of your recruiting focus. For some expert support, please call a Consultant on 01225 313130.

Jobs market strong despite low employer confidence

Employers are increasingly concerned by the economy, however, the jobs market is booming. How is this happening?

Today we explore the latest research from the REC (Recruitment & Employment Confederation), of which we’re proud members.

Employer confidence drops…

  • 31% of employers believe economic conditions are worsening, versus 28% perceiving an improvement. These figures express a reduction in confidence since last month. The ‘net balance of confidence in hiring and investment decisions’ has also dropped to 10% – an all-time low.
  • Consumer confidence (as measured by the GfK index) has also fallen to -12. This equals the figure that followed the 2016 referendum.

…yet the jobs market remains strong.

  • As 40% of employers reach max production(/work output) capacity, increased recruitment becomes the natural option.
  • Within this, 1 in 5 businesses intend to hire permanent staff within the next 4-12 months. This varied little by businesses size, although micro & small businesses (those with 49 employees or fewer) led the way by 1 to 2 percentage points.
  • 10% more employers plan to increase their temporary headcount over the same period. Again, micro & small businesses respond positively; this time equalling large employers (those with more than 250 staff). Interestingly, medium businesses (anyone with 50 to 249 employees) are least likely to recruit additional temporary staff at this time.

Challenges continue:

  • The skills shortage remains concerning; especially for employers within construction, engineering and hospitality. It is noted that all of these sectors currently rely on non-UK labour.
  • As REC chief executive Kevin Green says, “Businesses are continuing to hire to meet demand, but issues like access to labour, Brexit negotiations and political uncertainty are creating nervousness…The government must do more to create an environment where businesses have clarity. That means clearly laying out what Brexit plans look like and how employers can keep recruiting the people they need from the EU.”

Recruitment methods used:

  • The number of businesses using internal referrals and direct approaches for recruitment has ‘declined significantly’. This may reflect the challenges posed by the skills shortage.
  • National employer satisfaction with recruitment agencies has once again increased, reaching 76% this year.

The Markit/REC Report on Jobs…

  • Elsewhere, the REC has also worked with IHS Markit to create its monthly jobs market stats. This reveals an impressive 27-month record for permanent recruitment growth.
  • Temporary recruitment additionally saw its swiftest rate of increase in almost 2.5 years. 
  • The skills shortage has contributed to further pay increases – both for starting salaries and hourly rates for temporary workers.
  • Commenting on this report, Kevin Green says, “The jobs market continues to confound expectations with both permanent and temporary placements growing at the fastest rate for over two years. Starting salaries are also still rising, so for workers who want to boost their earnings now is a good time to consider moving job”.

Got a question about recruitment in Bath and surrounding? Call the office on 01225 313130. You can see all our latest jobs vacancies here

[All stats via rec.uk.com]