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.

LinkedIn member count reaches 300 million

You can’t knock LinkedIn’s ambition. In a recent press release announcing its 300 million member milestone, the social network site stated that it won’t be resting on its laurels yet, instead it hopes to “create economic opportunity for every one of the 3.3 billion people in the global workforce.”

When put like that, this latest achievement is really only a scratch on the surface of LinkedIn’s self-proclaimed potential, but certainly one to celebrate and appreciate. Most applaudable is how far the online platform has come in the past five years and how instrumental it has been in changing recruitment methods on a global level in particular.

The huge growth in membership is testament to its reputation as a reliable business platform for recruiters and jobseekers alike. Since 2008, membership has diversified to welcome more countries and more sectors to the site, resulting in measurable increases in job vacancies and applications towards record levels.

Unsurprisingly, the main focus of the five year review was the network’s mobile offering, which is expected to account for 50% of views by the end of 2014. And with five apps currently in use, we can only expect that figure to keep increasing.

Without doubt, LinkedIn will continue to play a major part in the ongoing departure from traditional forms of recruitment in favour of innovative digital methods and processes.

Check out the ACR Linked In page for our thoughts and musings on this exciting industry in which we work and share your ideas with us – we’d love to hear them.

Budget 2014: More investment for apprenticeships pledged

An energy sector jobs boost, recruitment help for SMEs and Apprenticeship Grants for Employers (AGE) success rates were the main headlines concerning our industry from yesterday’s 2014 Budget.

And luckily for the Chancellor, predictions made last year about the growth of the economy and relief for the jobs market have been backed up by figures released by the Office of National Statistics yesterday also.

The report showed that between November 2013 and January 2014, unemployment fell by 63,000, with almost half of that figure accounting for 16-24 year olds. Average earnings also increased by 1.4%, with a rise in the number of self-employed also recorded.

The positive news for these two groups of people was the focus at least of the recruitment side of this year’s Budget, with the government pledging continued support of Enterprise Zones to help entrepreneurs and start-ups hire staff and grow their business through private investment.

Mr Osborne also revealed that the AGE scheme will continue to be a key focus in 2014, with an extra £85 million being invested to provide more than 100,000 grants over the next two years.

This in particular has been received well by leading HR and recruitment bodies and industry leaders, who keenly recognise the critical link between investment in young people and future growth.

British Chambers of Commerce director general John Longworth said: "With a huge confidence gap still separating employers from young job-seekers, we are very pleased to see the Chancellor heed our call to help firms take on and train tomorrow's workforce.”

On a less positive note, many were left disappointed to discover that the plans to remove under 25s from employers National Insurance Contributions did not form part of this year’s Budget as expected. Had it been included, the cost of hiring would have been dramatically reduced for many companies through lifting 1.5 million young workers out of the jobs tax. Allusions were made, however, to this forming part of next year’s reform plans – a pledge that campaigners will no doubt continue to keenly push for.

As ever, I welcome and applaud any initiative that serves to create jobs and strengthen our industry. Support must therefore also be pledged on a local as well as national level in order to keep this slow ascent towards recovery going.

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!