Confidence & recruitment grow hand in hand, but where are the people?
Permanent recruitment is rising at a record rate according to the latest KPMG and Recruitment & Employment Confederation (REC) survey.
As pandemic restrictions ease and more industries reopen, there is a mounting belief that the economy will bounce back quickly and that means optimistic businesses are shifting their mindset from consolidation and preservation to target growth.
The survey – compiled from the responses of around 400 UK recruitment agencies, of which I am one – showed that, in May and June, demand for new workers increased at the fastest rate in 23 years.
The upturn followed an increase in April, at which time we were unsure if employers were simply recruiting to catch up from the previous 12 months of low activity or we could see new momentum building in the market.
Two months on and the improvement shows no signs of slowing down with, rather pleasingly, the North of England leading the way nationally and boasting the steepest increase in permanent appointments in IT, Computing, and the Hospitality sector. The accountancy market is also one of the busiest I have seen in the last twenty years.
Here comes the ‘but’. While demand for good people is at an all-time high, their availability is at an all-time low. Mapped over the same timeframe, the number of workers looking for a new job dropped at the quickest rate for four years. Seeing the same pattern across a myriad of industries, the decline is linked to the furlough of staff, fewer EU candidates, and, of course, uncertainty following the pandemic.
Increased starting salaries
In a candidate-driven market, mixed with a refreshing air of private-sector business confidence, supply is outstripping demand and that means starting salaries are inevitably on the up.
In the North East, for now, they are just about holding up, but we have seen some outrageous salaries offered elsewhere in the country. Taking a London-based job but working from home (anywhere in the UK) can lead to astronomical increases for some, although I believe many national companies are working to address how they regionalise salaries when they have a remote workforce.
The challenge for recruitment
The challenge as a recruiter and an employer is to keep up with demand and always attract the right talent. Staff availability has declined immeasurably, and in part, because those willing to risk moving in the pandemic have already done so earlier in the year.
Positively in our region, I know there are a lot of people who are what I would call ‘window shopping’ right now. They are waiting in the wings and keeping an eye out for something special that grabs their attention.
There is no doubt that the flexibility to work from home and attend the office on their terms is playing a big part in decision making. As is having the flexibility to shape their hours so they can continue with the lifestyle they have built throughout COVID.
How can recruitment help?
By no means the hero, but the recruitment industry has continued to play a role in helping to keep vital services running smoothly throughout the pandemic. Now, it is playing a part in helping displaced workers find new jobs, and supporting companies as they adapt working patterns and prepare for the easing of restrictions.
This is why I couldn’t agree more with the deputy CEO of the REC, Kate Shoesmith’s, assessment of how businesses, recruiters and government need to work together to address the skills gap before it slows down our recovery.
The trends are worrying and we need to urgently address the skills gap together, supporting people to train, reskill and upskill so they can progress their careers and move into new roles.