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…

The skills vs experience debate

Ask any recruitment consultant to tell you what common conflicts exist in the industry, and finding a balance between skills and experience is a likely answer. Google the two words and you’ll find a wealth of articles and blogs asking the same question, which is more valuable to a recruiter?

According to a recent survey by XpertHR, experience wins out in the HR world, with close to 90% of respondents claiming it was experience that helped to advance their career. General business knowledge was also listed as an important factor in securing entry-level positions, over and above that of academic qualifications.

Professional qualifications however were heavily championed, with 75% of polled HR professionals feeling that a Chartered Institute of Personnel and Development (CIPD) qualification was a prerequisite for promotion. Associated membership and fellowship status was equally encouraged, with only 15% saying they were not associated with any professional bodies.

Here at ACR we are firmly committed the continuous professional development of all our team members. We understand the value in equipping staff with the right knowledge and skills to progress within our ever-evolving industry, working closely with clients to promote and implement the same principles within their organisations.

2013 in review

As at the end of every year, the team here at ACR look to the media and to the industry’s professional bodies to see if their findings and forecasts match with what we have experienced in the past 12 months locally here in Cambridgeshire, as a good indication of what we can expect from 2014 both locally and nationally.

We have seen a steady growth in positive stats and figures coming from in-depth reports and surveys concerning employment levels undertaken by the Recruitment & Employment Confederation (REC) and the Chartered Institute of Personnel and Development (CIPD).

The REC’s end of year JobsOutlook survey shows that the number of employers planning to take on more permanent staff early next year is up nine per cent on 2012. Better news still for the temporary and flexible workforce, which benefits from a 17 per cent rise (to 47 per cent) in employer interest and engagement.

Confidence in the economy generally is also growing, with small businesses in particular demonstrating good faith. Many believe this is largely due to the changing attitudes in consumers and their increasing willingness to spend money, invest in a product and/or buy into a brand.

The Office of National Statistics also brings good tidings for the close of 2013, reporting the lowest level of unemployment in the UK for four years and the highest number of job vacancies for five years. Even more encouraging is the fact that the East of England reported the lowest unemployment rate of just 5.6 per cent compared to other areas.

This officially puts our county at the top of the employment ladder nationally. Having successfully placed many candidates this year, we are both delighted and unsurprised by this statistic. Locally, our employers are showing increased optimism in hiring new workers and keeping remuneratively competitive – as demonstrated by our salary survey results released in October.

All of the above can only mean good news for the world of recruitment as we get ready for the year ahead. January is always traditionally a busy time for jobseekers and agencies alike, but we will strive as ever to maintain and sustain the positive, confident and resolute attitude adopted by so many when a new year comes around.  

We would also like to take this opportunity to thank all of our clients and candidates for choosing to work with us in 2013, and look forward to doing so again next year.

ZERO HOURS CONTRACTS – OUR VIEW

You may have noticed we stayed rather quiet when the subject of zero hours contracts first crept into the media spotlight back in August. It was a purposeful silence, as at that time, we simply felt the matter had been exacerbated and had unfortunately fallen victim to ‘band-wagon’ mentality from the majority of the public.

That isn’t to say that the arguments for and against weren’t valid of course – far from it – there just hadn’t yet been enough research behind it to present a balanced and measured argument…until now.

A new report from the Chartered Institute of Personnel and Development (CIPD) has revived the topic using meaningful results from a survey of more than 2,500 workers, dismissing previous statements that vilified this type of employment and called for restrictive regulation. Instead, its focus was on the overall understanding and implementation of these contracts, highlighting any areas for improvement for employers.

REC Director of Policy, Tom Hadley, rightly summed this sentiment up with a comment of his own: “Rather than seeking to add further layers of regulation and getting bogged down in a debate over different types of contracts, the focus for government must be to ensure that workers have the right skills and awareness to progress within the jobs market – whatever the type of contract they are on.”

The rules and regulation surrounding the flexible work environment can be a minefield for both employer and employee. Last month marked the two year anniversary of the introduction of Agency Worker Regulations (AWR) - which were also initially met with scepticism. Yet while recent reports show that the legislation incurred significant cost for recruiters, demand for temporary staff is still strong, with 96% of employers planning to increase or maintain their temporary workforce over the coming year.

Couple this with 60% job satisfaction of zero-hours workers (comparable to the average UK employee) and we can begin to understand the real benefits behind a contractually diverse workforce. It certainly gets the ACR seal of approval!

Industry infographic reveals record turnover

The latest trends update from the Recruitment and Employment Confederation (REC) has piqued the interest of many consultants and agencies across the country, with its market forecast findings presented as a dynamic infographic.

The results presented show a comparison between permanent and temp/contract recruitment, with some encouraging stats reflecting a sense of growing optimism within the sector that is stronger than ever.

Over the past 12 months, total industry turnover has grown by 3.1 per cent to £26.5 billion, of which the temporary and contract market contributed 91 per cent for 2012/3 with record gross revenue of £24.1 billion reported.

According to REC chief executive Kevin Green, whose comments can be read here , the robust nature and attitude of the industry as a whole has significantly contributed to its continuous improvement and year on year over achievement in terms of exceeding predicted revenue growth.

Confidence in the post-recession recovery made so far has resulted in a much more positive forecast for the next three years, with realistic growth figures of 7.3, 8.3 and 9.6 per cent respectively set to increase total industry turnover to an even bigger record high of £33.5 billion by 2016.

While the numbers are very impressive, it is the increased volume of people that are now in work following a period of crippling unemployment that is the real success story here. Demonstrating the unrelenting stability and dedication of recruiters are the 617,000 people who got permanent jobs, and those 1.1 million people in temp/contract assignments on any given day.

The job security and satisfaction of placed candidates and the growing investment made by employers into their recruitment processes have been the nurturing forces aiding the industry’s recuperation; setting the scene for a welcome and increasingly pacy return to the golden pre-recession years.

Take a look for yourself. You can see the infographic here and the accompanying presentation here. 

LEARN WHILE YOU LUNCH!

As the reader’s of this blog will probably know, we enjoy a good working partnership with Hegarty LLP Solicitors, with whom we host our annual employment law seminar (see posts below for my write up on last month’s briefing).

In response to the success of these yearly updates, together we have decided to launch a series of workshops to give people the chance to learn more about a particular topic in a relaxed environment.

The Lunch and Learn sessions will be held at our Lynch Wood offices, where there will be an opportunity to network with other delegates as well.

We have been busy liaising with clients and other interested parties to find out what subjects they would like to learn more about.

Most requested was social media, which take the spotlight at the next two sessions to be held on Tuesday 26^th November and Wednesday 4th December.

The workshops will be headed up by Martin Bloom, who will bring delegates right up to speed with the latest updates and legislation.

To register your interest call us on  01733 235298 or email us. 

Diversity

The business case for diversity continues to be well articulated topic within the HR and recruitment sector. Yet while pledges, policies and codes of conduct are readily available for employers to engage with, there is still a significant discord between what is preached and what is practiced, particularly with regards to gender diversity.

Last month, the Recruitment and Employment Confederation (REC) held its second Women in Recruitment conference in conjunction with Recruitment International, during which a number of key themes were presented and discussed.

First and foremost was the reiteration of the indisputable business benefits brought about by the creation of a diverse workforce. Not only does it widen the talent pool, it also helps to remove the stigmas and prejudices surrounding both male-dominated industries and female-dominated industries.

It was rightly indicated that recruitment consultants have a duty to ensure that employers are fully informed and aware of the important issues surrounding diversity, particularly within their local labour markets. This is something that myself and the team at ACR directly identify with, working consistently with our clients to modify and enhance their recruitment methods according to the latest trends, research and legislation.

Most recently this has included the promotion of flexible working offerings and the support of mentoring in schools through careers guidance and work experience for young people. ACR has long been a vociferous advocate of temporary staffing because the advantages are extensive and the value high. Yet too often temporary work is regarded as a ‘women’s issue’ and wrongly attributed to return to work mums.

Clients who have recognised the benefits of employing both make and female interim workers have reported improved retention rates and increased productivity. There are multiple benefits for the candidate also – a change in career direction that began with a short-term placement being just one example.

With regards to school liaison, and the wealth of higher education opportunities now available to young people, more needs to be done to help advise and guide school and college leavers about which option to choose. And while gender crossover continues to be low within certain industries and along particular career paths, improvements must be made to the quality and availability of careers guidance and work experience opportunities.

ACR are regularly involved in school college liaison on a local level and continue to address the above points during our visits. It’s only by businesses taking on enthusiastic, hard working youngsters and discovering the benefits for themselves that they will be encouraged to invest in more and so widen the job market for that age group.