NEW CHALLENGE FOR EMPLOYERS IN IMPROVING JOBS MARKET

There is some really positive news on the jobs front.

A monthly survey that tracks employment trends suggests that eight out of ten employers are planning to hire more people in the next three months.

The JobsOutlook survey, carried out by the Recruitment and Employment Confederation (REC) suggested that demand is increasing from a quarter or employers at the turn of the year to a third of employers surveyed last month.

Employers nationally are also expressing concern over skills shortages with one in five predicting a problem finding the right people to fill technical and engineering roles.

This national trend is mirrored locally.  The recently published Greater Peterborough Business Survey of 200 companies revealed that a third of businesses expected to recruit in the next 12 months.  And 21% of respondents to the local survey expressed concern that there was a shortage of specialist skilled staff in their sector.

The REC describe their latest survey results as the most promising since 2009 and advise companies to ensure their hiring processes are right to ensure they attract the right quality of candidates.

There is little doubt that employers need to plan ahead and act quickly and decisively when looking to recruit as candidate shortages will increase in the coming months.  All companies and organisations will need to work harder to win over and retain talented people.

We would suggest that companies need to:

• assess their business plans for the coming months in order to plan ahead
• allow ample lead time for a comprehensive recruitment campaign with realistic timescales when hiring
• improve the candidate experience
• review their recruitment processes to ensure they are fit for purpose
• review salary and benefits packages to ensure they are competitive to tempt talent – by using the ACR salary survey
• position themselves as employers of choice
• sell their own business to would-be employees

It is really important to remember that recruitment is a two-way process.  You may be choosing a candidate but the candidate is also making a decision about the employer.  Do you value well-being? Do you have a gym? Do you offer flexible working? Do you support a good work/life balance? It’s not just about the salary package.

Flexible benefits packages are also becoming increasingly popular, where candidates can pick and choose the package elements that suits them best.

Many companies are looking to use the increasing flow of graduates.  High Fliers Research suggests that some of the country’s biggest employers like Google, British Airways, John Lewis, the police and civil service alone expect to hire around 19,000 graduates in 2014 – an increase of nearly nine percent compared to 2012.

Here at Anne Corder Recruitment we recognise the importance of attracting the best talent – including graduates - and have specialist ‘talent spotters’ who are constantly trawling the market to ensure we can offer clients pre-qualified candidates of the highest quality.

The very fact that we are now talking about significant recruitment activity is hugely positive news and the fact that national and local surveys are coming up with the same conclusions, seems to validate this news.

Job vacancies rising at fastest pace since 1998

Despite its positive headline, the latest jobs report released on Friday (7th Feb) has been met with mixed reactions from industry professionals. Produced by the Recruitment and Employment Confederation (REC) in conjunction with KPMG LLP, the survey revealed that job vacancy numbers are rising at a 15 year high, with notable peaks in performance across a range of sectors.

Yet with many good news pieces, there is a downside, with declining availability of candidates and skills shortages becoming problematic for a number of industries. This subsequently raises concern for economic growth on the whole as businesses struggle to find and maintain the right workforce to make a meaningful contribution to recovery.

Interestingly, statements are now being made surrounding careers guidance - in particular, what sort of advice is currently being given versus what advice should be readily available.

Tom Hadley, director of policy at the REC, said: “Part of the solution is to develop a careers guidance network that is fit for purpose. People need to be made aware of the growing sectors and what skills will be needed in the future, they also need to be taught the mechanics of finding work.”

He added that job centres across the country needed support from local businesses and recruiters in order to equip their jobseekers with regionally relevant information and advice about what sort of jobs and careers there are in their area.

In the spirit of optimism, the team and I are focusing on the positives from the report, including the news that unemployment levels have fallen to their lowest in just under five years.

We will however heed the advice given by REC and its policymakers by continuing to actively support Peterborough’s economy and equipping our clients and candidates with expert, local knowledge. Our salary survey is one way in which we do this, providing local employers with incredibly useful data about pay and remuneration packages in their area.

Recent salary survey publications have demonstrated an upward trend in employer confidence, which is tentatively reflected in this newest report on jobs. Particularly pleasing are the further sharp rises in temporary billings –and with truly genuine benefits for both employer and employee we can see why.

All in all, a promising first report for 2014. Watch this space for further comments and updates…

JOBS OUTLOOK SURVEY DELIVERS PROMISING RESULTS

Catching up on recent findings from the Recruitment and Employment Confederation’s (REC) latest JobsOutlook survey, I was thrilled to read that 56% of employers intend to increase their headcount over the next quarter.

It’s another encouraging statistic that serves to reflect increased optimism of businesses about the future of the economy and, more specifically, the jobs market.

A rise in the percentage of bosses who foresee agency staff headcounts will “stay the same” also shows growing confidence in the temporary labour market and the benefits agency staff can bring to businesses.

The summer months are a particularly busy time for temporary workers, who are most often employed to meet fluctuations in demand and to assist during sickness/holiday/maternity cover.

Temporary recruitment is something that myself and the team at ACR commit a lot of our time to, as we recognise the value that flexible work can offer both clients and candidates. And while we know there is a demand for it here in Peterborough, it’s great to see that the benefits are becoming more widely recognised, as reported by the REC.

Over the next year, one in three respondents plan to increase the use of agency workers, while 60% predict no change in their use of temps. This leaves just 6% who expect to make a reduction - a pleasingly low percentage.

ACR inputs data into the JobsOutlook survey on a monthly basis so it’s always interesting to see if our findings match those on a national level. We continue to be reassured by the latest results, and look enthusiastically forward to what the next quarter will bring.

Sharpest rise for almost four years

‘Strong and accelerated rises’ – that’s a phrase we haven’t heard in relation to the job market for a long time. But, according to the latest figures, it is apt.

We feed information into the monthly Report on Jobs, published by the REC and KPMG and February’s figures are looking good.

Permanent placements increased at the sharpest rate in 10 months. Temporary billings fared even better with the greatest rise since May 2007 – that’s almost four years.

And it wasn’t just appointments that scored robust growth. The overall level of vacancies showed the strongest rate of increase since last April. There are more candidates in the market too – especially those looking for temporary work.

Of course, any positivity these figures generate – and they certainly should generate some – has to be tempered by what is happening in the public sector. While the private sector is hiring, the public sector is shedding jobs. The Report on Jobs shows that while the IT and computing sector saw accelerated growth over the last 12 months, nursing, medical and care sectors have declined.

The REC’s chief executive Kevin Green described the situation in the UK as a ‘two speed labour market’. He also anticipates unemployment will continue to rise until the end of this year before starting a slow decline into 2012.

We certainly believe the overall findings of the latest national figures are reflected here in Peterborough and hope the positivity generated helps push the local economy forward over the coming months.

Get a better job – we’re right behind it

A lot of people who might otherwise have begun a job hunt last year sat tight, preferring to stay with their current employer than start a potentially futile job hunt or, worse still, change jobs only to find themselves surplus to requirements not long after.

But with signs the job market is moving in the right direction – the latest Report on Jobs sponsored by the Recruitment and Employment Confederation and KPMG (which we contribute to) reveals there was an increase in demand for staff in the three months to December – now could be a good time for candidates to start considering their options.

We’ve always found job fairs a very positive way to engage with candidates. You know that everyone in the room is actively interested in launching a job search, that’s why they’ve taken the time to visit. As an agency exhibiting at these events we find we’re often targeted by people who know they’re not particularly fulfilled or happy in their current role but aren’t quite sure what else might be open to them.

We’re able to help, advise and suggest possible solutions – whether it be companies they could speak to, courses they could attend to improve their skill set or even inviting them in for a more formal consultation if we feel we can really add value to their search.

Get A Better Job day is an annual event in Peterborough. This year it’s being held on Thursday, January 28 between 10am and 6pm at The Great Northern hotel.

While those are currently out of a job are welcome, the day is also geared towards those who are looking for, as the name suggests, a better job!

Signs of recovery

A media frenzy has greeted the August Report on Jobs – a regular report published by our governing body the Recruitment and Employment Confederation and KPMG. It suggests the labour market is showing signs of recovery – so it’s hardly surprising the newspapers, tv and radio stations have been quick to pick up on it!

We submit data to that report and our findings are in line with the overall picture the key points of which are:
• marginal increases in both permanent and temporary staff appointments
• candidate availability rose at weaker pace
• permanent and temporary staff pay fell at slower rates

The REC’s chief executive Kevin Green told the BBC that employers are becoming ‘more confident in their hiring decisions’. Again, that’s something we would agree with. After many months of clients hanging back from making long term decisions about taking on permanent staff, we are now seeing movement in that market.
The good thing is those now actively seeking staff have a very definite need - companies aren’t just trawling the labour market on spec.

Kevin said: ‘For the first time in 17 months, this month’s report shows signs that the UK jobs market is improving. There has been an increase in permanent recruitment and growth in temporary placements for the first time in over a year.”

And that, as everyone in recruitment and HR would agree, is very welcome – and very good – news.

The green shoots of Spring

We’re in phase three!

And believe me that is good news!

Well-respected recruitment expert Roger Tweedy from the REC has drawn up a model showing the stages – from a recruiter’s point of view – of a recession. This is based on interviews with veteran recruiters who’ve weathered three recessions. (ACR has an input into the monthly report on jobs published by REC and KPMG).

Briefly, the model goes like this:
Phase 1: Fall in permanent business and rise in temp/contract business
Phase 2: Continued fall in permanent, fall in temp and slowing down in public sector
Phase 3: Rise in temp and contracts and increase in permanent business
Phase 4: Full recovery and growth

Another well known and knowledgeable recruiter Bill Boorman has charted these phases during the current recession. Phase 1 happened during the back end of last year. The collapse of Woolies, the snow in January, early bank holidays and Fred Goodwin’s pension all contributed to a decline in employer confidence with temp and perm markets both at a standstill – phase 2 – in January, February and March.

But…..
That’s changing. It’s something we’ve noticed over the last four weeks and something Bill Boorman has recognised as a national trend. Temp and contract clients are reporting slight – but continuing – increases in business levels. Permanent clients are also reporting more deals being done. Decisions on hiring are taking time but they ARE coming through – companies are starting to consider if now is the time to start rebuilding headcount to capitalise on recovery as it comes. And that means – we’re in phase three!

There does seem to be a consensus in business that Roger Tweedy’s phase 4 will come next Spring. That feels like a long way off. But for now, after the pain of phase 1 and 2, phase 3 is very welcome and we will be doing everything we can to capitalise on it for our clients, candidates and ourselves.