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Decline in Availability of Candidates and Increased Starting Salaries!

Key points from the October survey:

  • Continued growth of appointments but at a softer pace
  • Availability falls sharply
  • Starting salaries increase at second-quickest rate since November 2015!

Commentary “Its great news that employers are continuing to hire. However, that growth is slowing down and one of the reasons is that we simply do not have enough people for all the roles that are out there at the moment. And the number of vacancies is still getting higher. For jobseekers this is good news as employers are willing to pay higher starting wages to attract the right candidates. 

EU workers are leaving because of the uncertainties they are facing right now so the situation may well get worse and employers will face even more staff shortages.”

Appointments/Vacancies…

A strong underlying demand for permanent workers has created the continued growth in recruitment. However, shortage of suitable candidates and concerns over
the UK economic outlook has been detrimental to the overall pace of expansion.

This trend occurred throughout all of England; however permanent job vacancies in the South of England continued to increase at a faster rate than the national average.

Increased Demand in Workers Juxtaposed with Declined Availability of Workers…

Since October 2016 to October 2017 there has been an increased demand in workers across all sectors, in particular:

  • Accounting/Financial – increase of 9.1%
  • IT & Computing – increase of 4.1%
  • Engineering – increase of 3.3%

The problem is compounded by the lack of availability of workers throughout the UK. The sharpest drop in permanent candidate availability continued to be seen in the South of England.

Pay Pressures…

Starting salaries for people placed in permanent jobs has increased further.

The rate of pay inflation has also quickened throughout the UK and was the second-strongest recorded since November 2015. The steepest increase in rate of pay inflation was in the South of England.

Earnings and Inflation…

Average weekly earnings have continued to increase but at a slower pace than living costs. Higher fuel and food costs have been key culprits in the inflation. Combined with the concerns that real pay will continue to decline, there will be further pressure exerted on household budgets and spending.

 

 

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IFAs remain resilient despite rise in robo-advice

Despite the rise in the use of robots as employees in the workplace, IFAs remain adamant that such technology will not replace their human face-to-face investment advice.

Although robots and automation are increasingly infiltrating the financial services industry, experts argue that there are certain matters which robot advice cannot be used for; robo-advice generally focuses on investments which relate more to saving money rather than providing advice. For the sale of financial final products, clients require face-to-face advice…

Additionally, robo-advisers lack the learning and experience which is picked up on the job while working in the marketplace. Robo-advisers also lack the ability to adapt to a client’s response and body-language during meetings…

However, there remains the argument that robo-advisers will save people money and may be appropriate for the absolute bare basic investor. The robo-advisers have proved that they are able to look at volatility in the market and allocate accordingly…

The conclusion appears to be that if people want to pay a low price they’ll choose the robots. Conversely, those wanting  a more detailed report will be willing to pay for a higher price and choose face-to-face advisers…

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FCA Announces that IFAs are to Disclose Esoteric Investment Recommendations

 

The FCA has recently announced that IFAs are to disclose more risky investment strategies which they have recommended to their clients

The FCA’s reforms follows its review of the Financial Services Compensation Scheme (FSCS); from 2013-2016 around a third of FSCS claims were linked to the sale of esoteric investment plans by Advisers.

During the consultation The FCA did not address the proposal that Advisers selling higher-risk products were to pay more towards the money pooled in the Scheme.

However, The FCA has agreed to such reforms as adding a new section to their online reporting system, GABRIEL, for calculating risky future levies. This will come into force on 1 April 2018. Other confirmed reforms include ordering Llyod’s of London to contribute to the funding that comes from retail firms.

A full list of the reforms will be accessible when The FCA publishes its papers….

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Business Quick Stats..

A Snapshot of Statistics from Recent Months

84% of small businesses have no official ransomware policy. Staff are put at risk of cyber attacks….

92% of cyber attacks suffered by UK businesses were targeted at connected devices such as networked security cameras….

5 million working hours are lost every week by small businesses due to everyday IT issues

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4 Qualities Top CEOs Look for in Leadership Roles

Want to make your CV stand out? 4 Crucial Qualities Top CEOs Look for in Leadership Roles!

  • Purpose

The more successful companies strive to make a difference; their focus is not solely on making money.

How can candidates show this?

Their purpose for being hired is more than simply making money and hitting targets…

  • Empowering Employees

CEOs want to hire employees who will have a positive influence on the rest of the workforce.

How can candidates show this?

They are eager to learn, possess critical thinking skills and will empower the rest of the workforce to develop through providing them with learning opportunities…

  • A Bias Towards Learning

A leader in a company must show a desire to constantly learn and develop. Industries and business are forever adapting and changing in relation to market trends, political upheavals, changes in law etc. A leader himself must also evolve symbiotically.

How can candidates show this?

Past academic achievements and experience are vital, but so too must the candidate show relevant future ambitions and plans…

  • Good Knowledge of Social Media

Recruiters frequently spot potential candidates for roles through social media sites such as LinkedIn, Twitter, etc. It is important to make the use of such sites so that your competitors do not fill up vacancies before you.

How can candidates show this?

Sign up to as many social media platforms as possible, highlighting your key strengths on it and putting as many relevant keywords in the post to attract as many recruiters as possible…

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UKEF to Help UK SME’s Access Financial Support

UK Export Finance (UKEF), on Monday 16th October 2017, announced that it has launched a new partnership with five renowned high street banks – Barclays, Llyods, HSBC, NatWest and Santander – to provide SMEs with access to millions in government-backed trade finance.

What is UKEF? 

UKEF, as part of the Department for International Trade, provides financial support to help UK companies sell to international customers.

What are the implications of this new partnership?

Now that SMEs have access UKEF-backed finance, they have greater support to access major export contracts, to access growth markets worldwide and seize international trading opportunities.

SMEs can access UKEF finance directly from their banks, even if they have reached their credit limit or if the proposed contract is considered too great a risk for the banks to take on alone. Removing the often slow process of applying separately to The Department for International Trade as well as the banks, SMEs can easily access funds within seconds where the transaction is eligible. 

Does this scheme only benefit SMEs which are selling overseas?

No! This scheme also allows SMEs which supply products directly to overseas-selling companies to qualify for UKEF finance. This helps SMEs deliver their products into new markets and, by securing contracts with renowned UK exporters, SMEs can benefit from the global demand for UK goods and services.

 

 

 

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Business Quick Stats..

A Snapshot of Statistics from Recent Months

16%According to research by The University of Edinburgh, the likelihood of success increase 16% if entrepreneurs write a formal start-up business plan….

45%:27%According to a study by Aston University, there has been a 45% increase in the proportion of women who became entrepreneurs and went into business. The increase among men was only 27%….

48% – According to a survey by OFX, 48% of small firms in the UK have increased international sales since the EU referendum….

 

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Declined pace in permanent placements, candidate shortages and higher salaries

October Report on Jobs

Key Points from the September Survey

  • Permanent placements rise at weakest pace for five months
  • Candidate shortages continue to drive up pay rates


1. Staff Appointments

Growth in permanent staff appointments eases

The number of people placed into permanent job roles continued to increase in September, stretching the current sequence of growth to 14 months. Though solid, the rate of expansion was the slowest recorded since April. Evidence indicated that strong demand for permanent staff across both new and existing clients supported the latest upturn. However, there were some reports that a lack of suitably skilled candidates had weighed on overall growth.

On a regional basis, growth of permanent placements was the most marked in the Midlands and the South of England.

2. Vacancies

Vacancies continue to rise sharply

There has been a further sharp increase in demand for staff. Steep growth of demand was signalled for permanent staff during September.

Other vacancy indicators

Data from the Office for National Statistics (ONS) indicated that job vacancies rose by 3.2% year-on-year in the three months to August. This was down only slightly from a 3.5% increase in the preceding three months.

3. Staff Availability

Availability of permanent staff

The availability of permanent candidates continued to fall sharply in September. Notably, the rate of reduction was the most marked for four months.

The South of England continued to record the steepest drop in permanent candidate numbers, though all remaining UK regions also saw sharp rates of contraction.

4. Pay Pressures

Permanent Salaries

Although the rate of salary growth softened since August, it remained sharp overall. Evidence indicated that a shortage of suitable candidates had placed upward pressure on pay.

The South of England saw the steepest increase in permanent starting salaries of all monitored UK regions, followed by Scotland.

5. Vacancies – Feature

Latest labour market data published by the Office for National Statistics (ONS) indicated that there were 774,000 job vacancies for June to August 2017. This represented an increase of 24,000 compared to the same time last year.

The official numbers back up the strong increases in staff demand. Notably, the ONS data indicated that the number of job vacancies in 2017 have exceeded any level since the series began in 2001. Vacancies broken down by sector revealed that the vast majority of unfulfilled roles (687,000) were in the services sector.

 

Simon Bean, Managing Director of Recruitment Connection says:

“The above trends highlight that it is becoming increasing difficult to fill vacancies for permanent roles. The shortage of suitable candidates has in turn triggered increased pressure on salaries.”

“The struggle to recruit for permanent places, particularly in the financial sector, resonates throughout the UK; London, however, has been hit the hardest and placements have declined for the first time in eleven months.”

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Continued high demand leading to key shortages and increasing salaries…

Key August points

  • Permanent placements rise
  • Demand for staff increases at fastest rate since April 2015
  • Candidate availability declines at quicker pace, pushing pay rates higher

Commentary: Employers are finding it harder to find the people to fill the jobs available. In many areas of the jobs market candidate supply cannot meet demand. Employers are having to offer more money to secure the people with the skills they need. This is good news for individuals, but businesses will be concerned about the sustainability of this trend as businesses can only grow if they have access to the people and skills they need.

UK wide …

Staff appointments continue to rise sharply in August

The number of people placed into permanent job roles continued to rise sharply in August

Staff vacancies rise at quickest rate for 28 months

August showed a further steep increase in staff vacancies. Furthermore, growth of demand for staff reached its highest since April 2015.

Pay growth strengthens…

Growth of permanent starting salaries accelerated for the fourth month running in August. Notably, it was the quickest rate of pay inflation seen since October 2015.

…amid further drop in candidate availability

The availability of candidates to fulfil permanent job roles continued to decline sharply in August.

In the South of England there was a sharp increase in permanent placements in August

Permanent placements rise at sharper rate

The number of people placed into permanent roles in the South of England increased for the thirteenth successive month in August.

Faster drop in permanent candidate supply

There has been a further deterioration in the availability of permanent staff in August and one of the key notable shortages in the SE has been paraplanners.

 

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