Latest market news: High demand for staff but low candidate Availability

 Key points from the March Survey:

  • Permanent placements continue to rise;
  • Growth of demand for staff remains high, but candidate availability drops lower;
  • Starting salaries increase to greatest extent for five months.

Growth in permanent placements…

Although the rate of expansion has softened from February’s three-year record high, the growth in permanent placements remains sharp. Permanent placements vacancies continue to rise at a slightly faster pace than that for temporary job roles.

Candidate availability...

The availability of permanent workers has fallen for the fifty-seventh consecutive month in March. Key permanent staff skills reported in short supply includes in particular Accountants, Engineers, HGV Drivers and Web Developers.

Pay pressures…

The rate of inflation in salaries for newly-placed permanent staff has accelerated for the second month running in March. Evidence suggested that the higher salaries are attributed to strong demand for staff alongside competition for scarce numbers of candidates with the required skills for the roles. Data published by the Office for National Statistics shows improved earnings growth in its latest report. Alongside a softer increase in living costs, this suggests that the pressure on real wages may be coming to an end.

Commentary:

Permanent placements are growing month on month as demand for staff remains high. More people are entering employment, but it doesn’t make up for the shortfall of candidates for many roles, from cyber security and aerospace through to sewing machinists and drivers.

As a result, employers are increasing starting pay to draw candidates away from current roles into new positions. 

Candidates planning to move jobs have a strong chance of getting a pay rise. With inflation outstripping pay growth for over a year now, high pay offers will be tempting, as the pressure on starting salaries still isn’t translating into pay rises for staff who stay put. Employers need to look at other means to keep staff, such as creating a good workplace culture and offering progression opportunities.

 

Share this page:

Inflation Remains at a Record High Amid Candidate Shortages

Key Points from the February Survey:

  • Softer rise in permanent placements
  • High levels of candidate shortages amid high starting salaries
  • Softer rise in staff vacancies

Softer rise in permanent placements…

The number of people placed in permanent jobs increased in February although at a slower rate than January’s recent high. The continued increase has  been attributed to a strong demand for staff and a greater willingness among candidates to take up new roles

Decreased demand for staff…

The demand for staff for permanent positions has risen at its slowest pace in fourteen months.

Availability of staff…

The availability of staff for permanent roles continued to decline in February.

Pay Pressure…

Salaries for permanent starters have increased further in February and the rate of inflation remains at a record high. The higher salaries have been attributed to higher candidate and skill shortages amid rising vacancies.

 

 

Share this page:

Market update: Salary inflation hits 31 month record!

Key Points

  • Strong rise in recruitment
  • Starting salary inflation hits 31-month record alongside lack of candidate availability;
  • Growth of demand for candidates declines slightly but still remains high.

Sharp Increase in Permanent Placements

Permanent placements have continued to rise each month for the past year-and-a-half. This growth has been linked to a greater demand for staff, although some panellists suggest that improved decision-making has also been a factor.

Increase in vacancies:

Overall demand has continued to rise in January.

Availability of Permanent Staff:

The number of available permanent candidates has continued to deteriorate in 2018. Key permanent staff skills reported in short supply includes paraplanners.

Higher Starting Salary Inflation:

Starting salaries for successful permanent candidates has increased at the fastest pace for over two-and-a-half years.

UK Unemployment Rate in Context:

The UK employment rate is at a four-decade low of 4.3% which is below the EU jobless rate of 7.3%. The jobless rates are higher in Austria (5.4%) and the Netherlands (4.4%), but lower in the US (4.1%), Germany (3.6%) and Japan (2.7%) in comparison to the UK.

Share this page:

Recruitment news Jan 2018 – Permanent recruitment continues to rise at an increasing pace

Key Points from the December Survey:

  • Permanent placements continue to rise at an increasing pace;
  • Pay inflation remains high alongside a further decrease in candidate availability;
  • Demand for staff softens but remains historically strong.

Permanent Placements

Permanent staff placements have increased at the quickest pace since August. This has resulted in a higher number of people placed in permanent job roles for the seventeenth month running in December.  Key permanent staff skills reported to be in short supply esp paraplanners but also in construction and engineering.

Staff Availability

There has been an accelerated and steep drop in permanent candidate numbers. The rate of deterioration is the fastest recorded over the past two years.

Permanent Salaries

The trend of higher starting salaries for permanent jobs has continued into December. Although the pace of inflation softened for the third month in a row, growth remained sharp overall.

Demand for Staff

Although there has been an easing in the rate of expansion of demand for staff, the rate of growth has remained sharp and above the series average.

Employment

Latest statistics reveal that 32.08 million people were in work in the three months to October. Although this was 56,000 fewer than in the prior three months, this showed an increase of 325,000 compared to the same period in 2016.

Commentary: The number of people finding jobs via recruiters is growing, even while the overall employment rate is plateauing. This suggests that more employers are turning to recruiters to help them fill vacancies as candidate availability continues to fall and recruiting good people becomes that much harder. As a response to these candidate shortages are offering increased starting salaries to attract staff but while this has been the case for some time it isn’t translating into significant wage growth across the economy yet.

Early in the New Year, people often think about changing jobs, so employers are going to have to think carefully about how they can both retain existing capabilities and find the new hires they need as competition for people intensifies. Bosses should consider going to wider talent pools and to be inventive about how to improve their employer brand and make themselves an even more attractive place to work.

 

Share this page:

Job Searches: Look at the Entire Package (Not Just the Salary!)

Job Searches: Look at the Entire Package (Not Just the Salary!)

The start of a new year often coincides with a spike in job searches. In fact, more than half of the UK population will look for a new job in 2018. It can be tempting to focus solely on the offered salary. However, a wider perspective which takes into account the entire package being offered is advisable. Other factors to be considered include:

Pension Contributions

It can be important to consider whether your employer is using a defined contribution (DC) pension or a defined benefit (DB) pension scheme. The average employer for a DC scheme puts in 3.2% of salary, but this number can range from the minimum 1% to 10%. The average employer for a DB scheme, conversely, puts on 16.9%. If you seek a greater reward for your work, rather than additional cash, this can be a way of getting more money from your employer by diverting a greater amount of your salary into your pension.

Life Cover

Almost all employers offer a payment of several times your salary if you die while performing contractual duties. The majority will also pay for income protection; this will provide you with a regular income if you are unable to work for a while.

Medical Insurance

One-fifth of employees have private medical insurance. To replace this benefit, it would cost an average of just under £1,500. The benefits outweigh the payment of tax on their cover.

Save as You Earn Schemes

After paying a monthly sum into such schemes for a period of three to five years, you will be given a bonus. You can then buy shares in your employer at a fixed price. If the share price has increased during the period you can buy the shares at a large discount. If share price has fallen, you simply get your savings back with the addition of the bonus.

If you are currently involved in such schemes and decide to move employers, you will only get your savings back and no longer have the option to buy shares. Occasionally a new employer will compensate you for the forgone share options.

Other Benefits on Offer

These include:

  • Tax-free childcare vouchers;
  • Tax-efficient computer or bike schemes;
  • Season ticket loans;
  • Cheaper insurance cover;
  • Discounted shopping vouchers;
  • Free parking.

In conclusion, it is important to compare ALL the benefits offered by an existing and potential employer before deciding to accept a new job. There may be the possibility to negotiate with your current employer over the benefits offered.

Share this page:

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.

 

 

Share this page:

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…

Share this page:

Market News in brief April 16

Contrasting trends in permanent and temporary appointments

The number of people placed in permanent jobs continued to increase during March. That said, the rate of growth eased to a six-month low. Temporary/contract staff billings on the other hand rose at the sharpest pace in four months.

Slowest rise in vacancies since June 2013

March data pointed to softer growth of demand for staff. The latest increase in overall vacancy numbers was the least marked for 33 months. Both permanent and temporary staff saw weaker rates of growth.

Candidate availability remains tight

The availability of staff to fill job vacancies was reported to have deteriorated further in March. The sharper drop was indicated for permanent staff availability, which fell at a slightly sharper rate than in February. Temporary/contract staff availability however declined at the slowest pace in two-and-a-half years.

Further marked pay growth

Average starting salaries for people placed in permanent jobs continued to rise in March. The rate of growth remained strong, having quickened slightly since February. Hourly rates of pay for temporary/contract staff meanwhile increased at the sharpest pace in three months…

Share this page:

The Best Way To Resign

When it comes to leaving your job, however tempting the two-finger salute, or the verbal equivalent may be, you should never let your emotions get the better of you. ‘Don’t wait until you’re hopping mad to resign. Do it while you’re strong. And never express your anger to your boss, bide your time and keep it professional,’ advises occupational psychologist Colin Selby.

do's and don'ts
You may have landed the job of your dreams, but you never know when your career may bring you into contact with your former employers again. For instance, at some point they could be a potential client.

Do:

  • Tell your immediate boss informally, face-to-face, before handing in a formal letter.
  • Give constructive criticism if necessary but avoid blatant insults.
  • Be prepared to consider a counter offer from your employer.
  • Do as much as you can to facilitate a smooth handover.
  • Remember that the people you were working with could be good contacts for the future.
  • Choose your referees carefully and brief them on why you think you are suitable for your next job.

Don’t:

  • Hand in your notice when you are feeling angry.
  • Focus solely on negative points.
  • Feel obliged to give specific reasons for your resignation.

What if my employer tries to tempt me to stay?

If you are offered a pay rise equal to or above your new job offer, consider why it took the threat of leaving to bring it about.

Your boss may promise to remedy any problems within the company which have influenced your decision, but can you be sure they will be dealt with effectively?

If you do decide to stay after all, remember that your boss may see you as ‘the one who nearly left’ and you may find yourself having to prove your commitment to the organisation.

By staying, you will in turn have to turn down a job you have accepted – this will could work against you if you deal with your would-be employer in the future.

What should I say in my letter of resignation?

Your letter is a vital part of your resignation, but should not be used to air your grievances. Says Selby: ‘Hold fire before saying something you might regret. Write your letter and then sleep on it and return to it in the morning. You can then re-write with a clear head.’

The letter needs to include only the basic details of your resignation – the position from which you are resigning and your intended leaving date.

If you wish to add more, keep it positive and resist the temptation to get personal. If you haven’t had the chance to sit down with your employer, you could include constructive criticism in your letter to explain your reasons for leaving, but it may be worth asking a respected colleague to read over it first.

What about my notice period?

Your notice period is usually stated in your contract of employment. Where no period of notice is stipulated, you should allow between two weeks to a month.

Normally you have to work your notice period, in which time you can handover your duties and responsibilities to someone else. However, sometimes there will be reasons why you or your boss will want to make the notice period shorter.

‘If you want to exit more quickly, try to offer solutions to any barriers that could prevent you. For example, draw up a schedule of work that ensures any essential projects are completed,’ says Jeff Grout, author of Kickstart Your Career.

You may need to include a waiver of your notice period in your resignation letter. For example, if your contract calls for you to work a month’s notice, but your new employer wants you to start straight away, include a paragraph stating:

‘I am aware that my contract demands a notice period of (x) months, but I am required to join my new employer as soon as possible. If you could therefore waive my notice period, I would be happy to help hand over responsibilities to my replacement.’

Should I leave before I have another job?

It may seem like suicide to leave the security of a regular income when there are mortgage payments, school fees and other bills chaining you to your cheque book. But your reasons for resigning may mean you’ve had enough of working for a while, or your determination to leave may be so strong, you’ll go no matter what.

A survey by I-resign.com showed 49 per cent of respondents didn’t have a job to go to after resigning. While it may not be the most sensible idea financially, whether you want to make a complete career change, become a student or just take a holiday, taking a break from work may help you assess why you were unhappy with your job in the first place.

However, the flip-side is that employers may be more inclined to hire those already in employment.

Share this page: