May news …Rise in Vacancies…Drop in candidate availability.

Key Points:

  • Continued rise in permanent placements;
  • Growth of demand for staff picks up for the first time in nine months;
  • Steeper decline in candidate availability triggers greater rises in pay.

Permanent placements…

There has been an increase in permanent placements but the rate of expansion in April was the softest witnessed in 2018. The growth of placements was underpinned by a further substantial rise in demand for staff and greater job vacancies.

Decline in candidate availability…

The rate of reduction in candidate availability for permanent roles has quickened to a three-month record. The steepest decline was in the South of England.

Growth of demand for staff…

Vacancies for permanent roles have increased, thereby indicating that there is a greater demand for staff. This demand was higher in the public, as compared to the private, sector.

Pay pressures…

There has been a further rise in starting salaries for candidates placed into permanent roles. This has been linked to candidate shortages and a robust demand for staff. The strongest rise was in the South of England.

 

Commentary 

Demand for staff is still on the rise in every other sector, but candidate availability keeps dropping. Employers are paying more to attract the right people into their vacancies. For individuals, now is a good time to look for a new job, as you are in a strong position to negotiate higher pay. For employers, the challenge is to stay ahead of the competition to maintain and enhance your workforce. This is about more than just pay, it is about providing progression opportunities and a positive workplace culture. As recruitment gets harder the only solution for employers is to get better at attracting and retaining the right skills and staff…

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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.

 

 

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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.

 

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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.

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Job Market Report For Dec 14

Key Points in Summary

  • Growth of permanent placements eases to 18-month lowopen notebook
  • Strong Salary Growth
  • Further marked drop in staff availability
  • Average earnings and Inflation, any improvement?

In the world of staff appointments for November, the rate at which permanent roles are placed, rose at its slowest rate in 18 months. Several sources found they experienced a shortage of skilled candidates and slower client decision-making with this appearing worst in London. Although in the Midlands a stronger growth was experienced.

The demand for staff from employers is rising at its lowest rate in 13 months. The latest official data from the Office for National Statistics shows that vacancies rose by 24.7% on an annual basis in the three months to October. Furthermore, internet-based recruitment spending continued to increase at a strong annual pace. Latest data showed an 8.8% rise in Q2 2014 from the corresponding period one year earlier.

Good news in terms of salaries with the average starting salaries for permanent jobs continuing to rise in November although this is after October’s 8 month low. This has largely been attributed to stronger competition between employers for quality candidates. This increase was sharpest in the Midlands and slowest in London.

Adding on to this, averaging earnings growth has caught up with inflation for the first time in five years. Data from the Office for National Statistics showed that average earnings, excluding bonuses, rose 1.3% on an annual basis in September. Consumer price inflation in September was 1.2%, rising to 1.3% in October. However, earnings including bonuses were up just 1.0%. Pay growth has remained sluggish in spite of the recent recovery in employment. In a recent speech (“Twin Peaks”, 17 October), Bank of England Chief Economist Andrew Haldane drew attention to ongoing structural changes in the labour market which he argues have led to “polarising patterns” at the upper and lower ends, in turn resulting in a marked rise in wage dispersion.

 

On the one hand, high-skilled professions such as IT, engineering and construction continue to see skill shortages, leading to increased rates of pay for new hires, as signalled by the Report on Jobs in recent months. On the other hand, lesser-skilled jobs have seen a rise in the supply of labour which has more than offset rising demand, thus depressing wages.

Haldane identifies three key drivers of this. First, the ‘hollowing out’ of mid-skill jobs, a longer-term trend reinforced by the financial crisis, has led to displaced workers seeking jobs for which they are overqualified. Second, labour force participation has risen significantly, particularly among women and older age cohorts, reflecting changes to the default retirement age and benefits regime, plus concerns over the adequacy of pensions and savings. Third, immigration over the last 20 years has boosted the supply of labour.

As Haldane puts it: “This paints a picture of a widening distribution of fortunes across the labour market – a tale of two workers” … “This has been a jobs-rich, but pay-poor, recovery.”

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Key points from the October UK Labour market

Key points from the October UK labour market:

 

  • Permanent appointments growth still strong in October.
  • Pay growth moderates
  • Staff availability continues to decline markedly.

 

word picGrowth of staff appointments eases…

Permanent staff placements continued to rise in October, extending the current period of expansion to 25 months. However, the rate of expansion was the slowest since November 2013. Similarly, temporary/contract staff billings increased for an eighteenth successive month, but the latest rise was the least marked since June 2013.

…reflecting slower rise in demand for staff

Although the number of vacancies available to candidates seeking work also increased further in October, the rate of growth eased to a 10-month low.

Pay growth moderates

October data pointed to slower growth of staff pay. Permanent staff salaries increased at the weakest rate since February, while temporary/contract staff pay growth eased to a five-month low.

Candidate availability continues to fall sharply

Recruitment consultants reported that candidate availability remained tight in October. The rate of decline in permanent staff availability was marked, despite easing slightly to the slowest since May, while temp availability decreased at the fastest pace in three months.

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