Emma, our CEO and Founder, was on Radio Bristol this morning, talking about the complexities, challenges and opportunities of the current job market.
Emma started by saying:
‘Having been in recruitment for the past 25 years, I have certainly seen the effects an ever changing economy has had on the employment arena.’ ‘Whereas we all remember the global financial crisis of 2007/2008, I don’t think that anyone could have prepared us for the last two years.’
‘From being thrust into remote working following Boris’s announcement in March 2021 to returning to the workplace in 2021, all of us now know and fully appreciate the importance of flexible/hybrid working. This coupled with the effects of Brexit and now the cost of living crisis…. well it has certainly been a complex 25 months for us all to navigate.’
‘Undoubtedly all of the above, has most certainly influenced our current position and that is…. extreme candidate shortages, which are having a major impact on both businesses and the economy as a whole.’
‘I think the pandemic has seen people really evaluate how, when and where they work and these considerations have undoubtedly impacted candidate availability and the labour market as a whole.’
So what can employers do to ensure they do not feel the effects of such a tight labour market and candidate shortages….
Emma says:
‘It is important for businesses to appreciate that candidates have an enormous choice in the market. Gone are the days of recruiters providing a shortlist of potential applicants. Most often now, one candidate will have multiple opportunities and offers to consider before making their next move.’ Emma suggests: ‘ Act fast, smart and secure great talent when you see it.’
‘Retention is key and employee engagement and evaluation of your organisation’s offering and culture is more important now than ever based on individuals having different sets of criteria for work, post pandemic.
Key considerations for candidates now are:
…. hybrid and flexible working offerings
…. health and well being benefits
…. career progression and development
…. cool working hubs/space
…. trusting cultures that deliver for both the people and the business
…. along with competitive salaries given the current market offerings.
Retain, engage, inspire and motivate your teams so that you ensure your organisation has that unique point of difference. In a nutshell….why would someone want to work for you? How will you make them great as by thinking of them, they will enhance, drive and make your business perform and excel!’
Thoughts for the future:
Emma went on to talk about the current market and below we have listed just a sample of some of the stats and facts that really ring true when assessing the recruitment and employment landscape….
- Inflation yesterday was reported at a record 40 year high at 7.8%.
- 29.5 million people are now on payrolls across the UK.
- Unemployment between January and March was at 3.7% – the lowest for over 50 years.
- Job openings rose to a record high of 1.3 million.
- The deterioration of candidate supply has remained rapid in April 2022.
- Increased competition for scarce candidates places further upward pressure on pay.
- Total number of vacancies continues to rise sharply.
- A sharp increase in starting pay for both temporary and permanent positions based on demand but scarce supply of candidates.
- Wage growth is at 4% however this is not in line with inflation rate which was published yesterday at 7.8%.
Emma finished by saying:
‘Our governing body, the REC, (The Recruitment and Employment Confederation) does expect the labour market to remain tight over the summer months however a slow down of GDP growth could see the unemployment rate climb to 4% by the end of the year.’
‘Whilst the levelling off will be slow, we could see the challenge of labour shortages continue into early 2023 and beyond hence why, if you see great people….recruit them!’
If you would like to have a chat or a coffee with Emma to discuss the current employment market, do get in touch with her today: emma@juicerecruitment.com