The number of employers who plan to increase their permanent hires in the short-term is at 85% - the highest since www.rec.uk.com started their records, JobsOutlook. UK unemployment is at an all-time low since the recession so although this is great news for candidates, it may be a struggle for employers to find the right candidate and entice them to join their teams. This may also explain why one third of employers are concerned about the availability of permanent workers in the engineering and technology sector.
Compared with July last year, which was at 69% “only 30% of employers state that they will rely on agency workers to reduce costs”. However 42% plan to increase agency workers in the next quarter.
In the short-term, Rec.co.uk indicates that 4% of employers are looking to increase their permanent workforce, and only 2% are looking to decrease it. For the medium-term the intention to increase permanent staff takes a “slight dip” to 78% instead of the 85%, and employers reducing their permanent workforce doubles to 4%, of which 2% plan to decrease it significantly.
Company size and intention to hire permanent staff is shown in the graph below.
In the short-term nearly 50% of employers “intend to maintain the same level of use of agency workers” compared to 53% in the medium-term. Similar numbers plan to increase this use slightly, with 46% in the short-term and 42% in the medium-term.
With 5% in both short and medium-term planning to decrease agency workers “competition will be acute” perhaps effecting larger business more as they hold the biggest percentage intending to hire temporary workers.
Skills Shortages and Quality of Hires
Nearly a quarter of employers expect a shortage of engineering and technical skills this quarter, 22% compared to 13% in the last couple of months. A shortage of constructions workers has hit the top 3 areas for concern for the 2nd time, the only other being in March 2013. I feel this may be due an ageing workforce and migration trends. I have highlighted this as the construction industry has a huge influence on the economy.
Methods for Recruiting
Employers are using a variety of methods to recruit staff away from agencies including people approaching them directly, past applications, referrals, social media, jobcentre, own advertising and own websites. Satisfaction levels with recruitment agencies rose again, by 4% and only 6% were “fairly dissatisfied” with no one responding as very dissatisfied. The main criteria employers use to select an agency are price and quality, these are significantly more important to hirers than agency brand, agency scale, trade association and management information.
Overall, employment is on the up, “up 254K (0.8%) on the previous quarter and 929K (3.1%) on the same period last year.” Unemployment is still falling and now stands at 6.5%, The EU average stands at 10.3%.
With so many options out there for hiring managers use to recruit employees, I would love to hear how you go about sourcing candidates. And the role you feel recruitment agencies will play in the future. I feel the economic climate and sector you are involved in will play a huge part.