Yey – a Job Boom! Wait a minute….
Despite the upturn, employers are finding it difficult to recruit for permanent positions due to more candidates favouring temp/contract work … and as a result, they are having to offer increased salaries.
What’s the word in business?
The Recruitment and Employment Confederation (REC) and KPMG statistics—up to date guide to the UK labour market—Key Points: June 2014—permanent staff shortage ‘rate of contraction accelerated to the sharpest seen since 1997’, also—availability of contract staff steeply deteriorated too; worst in June this year since 1998. The June Survey: What this means?
- For 26 months in succession, salaries have been on the rise.
- Contract pay rates recently risen more sharply than since 2007.
- Placements on the rise.
- Top of the Regions for Permanent Placements: Midlands, followed by southern areas of the UK.
- However, the North are increasing their temp posts.
What does REC CEO, Kevin Green think? ‘Record growth in starting salaries’ however… ‘the number of workers available to fill vacancies [in June] plummeted to an all-time low’ So, what does Mr Green suggest? Since the market is currently candidate driven, businesses must act and sharpen their hiring procedures.
Note: candidate driven market—Carpe Diem!
Bernard Brown, Partner and Head of Business Services at KPMG agrees: Despite record breaking starting salaries, ‘candidates are not easily swayed’. However—take precaution—this large starting salary bubble cannot last, warns Mr Brown. A YouGov survey of 4,234 adults found
- 10% have been freelance
- 10% have been a contractor
- 24% have been a temp
- 40% who now earn >£30,000pa, have worked as a freelancer, contractor or agency worker
- 22% who now earn >£50,000 have been agency workers
- 36% who now have hiring responsibilities have been an agency worker
While JobsOutlook said that…
- 78% of employers plan to recruit more permanent staff over the next 4-12 months
- 87% of employers plan to recruit more permanent staff in the last quarter
- 47% of employers plan to recruit more agency staff in the last quarter
- 42% of employers plan to recruit more agency staff over the next 4-12 months
What does it mean for me?
Back to Kevin Green, the REC CEO: It’s not ALL about the money… Your talent can be rewarded in many ways, do you ever think about asking for…
- Flexible hours?
- Great benefits package?
- Nice environment to work in?
Last word from the Office of National Statistics: quarterly GDP, 2003-2014.
- GDP in 2003—£340bn
- GDP in 2008—£390bn
- Big dip in 2008-2009…
- GDP in 2014, Q2—£395.5bn
Even the IMF are saying the UK is set to expand by 3.2% this coming year—having predicted 2.8%