Recent UK report on jobs by KPMG and REC indicates an improved market confidence among employers as Government outlines its roadmap for lifting lockdown.
The volatile job market is showing signs of recovery following Government’s strategy to lift lockdown. According to the KPMG and Recruitment & Employment Confederation (REC), UK Report on jobs there is still an upsurge of temporary billings, however, the economy is now seeing a steadfast increase in permanent job placements since 2015. Eased lockdown measures coupled with the COVID-19 vaccine roll-out has resulted in improved recruitment activity in March 2021.
The report also reveals an increase in pay trends, with both starting salaries and temp wages rising for the first time in 3 months. Reports of COVID-19 related redundancies led to the availability of candidates becoming stagnant. This is due to concerns around the stability of new employment.
The data collected March 12 – 25, 2021 was compiled by the HIS Markit from responses from around 400 UK recruitment and employment consultancies. Among the responses, Neil Carberry, Chief Executive of the REC, said:
“For months, we have been talking about the potential recruiters saw for a recovery in hiring as we got on with vaccinations and the lockdown did its work. Today’s data shows that even during lockdown, our labour market was bouncing back. The strong temporary recruitment trend of the past few months has been maintained, but with a new addition – the fastest increase in permanent job placements since 2015. Taken together with a long-awaited recovery in hiring in London, this is a sign that business confidence is starting to flow back, even at this early stage of unlocking.”
“As companies start to recruit, they will need to appreciate that the labour market is still suffering from all sorts of shortages. So reviewing their hiring practices and doing things in the best way possible will matter more than ever. Inclusive hiring is not a tick-box exercise – it’s about finding the best candidate for the job no matter who they are, to help your business succeed. By working with professional recruiters, business leaders can help create fairer, more inclusive and more productive workplaces.”
As we continue to navigate through the turbulence of lifting lockdown, there are some predictions made about the future of recruitment according to BackOffice.
1. Flexible remote working
There is no doubt the effects of the pandemic have forever changed the way in which people work. Results of a recent IBM survey revealed that two-thirds of remote workers wanted to continue working remotely as their default way of working. We can expect this trend to grow as businesses consider making this a permanent arrangement.
2. Diversity, equality and inclusion
Recruitment agencies and HR officials will need to make diversity, equality and inclusion a greater part of their recruitment practises. The recent movement of Black Lives Matter highlights the need for change and growth to occur.
3. Temporary workers, the new stable
2020 was a very unpredictable year for many businesses and the economy at large. Consequently, many businesses across the UK closed down, furloughed their staff and rendered many employees redundant. The shift towards recruiting temporary staff gave businesses the flexibility to reduce ongoing costs. As seen by the KPMG and REC report on jobs, the rise of temporary workers continues to increase.
4. Up-skilling existing talent
There is an expectation that budgets may be redirected towards up-skilling existing staff since remote working and online shopping have become the new norm. This means that there will be a greater demand for tech savviness in order to adapt to the ‘new working environment’.
5. IR35 reform
There are many predictions around the now active IR35 reform in the private sector. Findings from a study done in the public sector following the implementation of IR35 2017 reform revealed that some agencies reported an increase in rates paid to PSC contractors. The reason was that contractors demanded higher gross pay from clients to compensate the reduction in net pay due to tax deductions. To learn more, read here.
6. Priority shift from attracting talent to nurturing clients
For the past 3 years, priority was always focused on finding the best candidates amid the shortage of talent. With the devastating surge of unemployment in 2020, jobs are in high demand and short supply. The focus for recruiters will be nurturing existing relationships and competing for new business in a volatile employment market.
7. Growing automation
It’s no surprise we can expect Ai and automation processes to dominate workflows in upcoming years. Recent statistics show that 72% of employers expect the automation of certain roles within the process of recruitment in the next 10 years. An estimated 50% of businesses already use AI to screen candidates.
8. Importance of employer branding
Over 75% of candidates researches a prospective employer’s brand before applying. A strong brand is imperative to attract quality talent. An employer’s brand can mean the difference of a candidate joining their company or that of their competitors. Your role as an agency could be to encourage your clients (employers) to review and possibly improve their brand.
If you would like to read more about the future of lockdown based on UK Government Guidelines, click here.
