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Flexible working is becoming central to employers hiring stategy
10-Feb-16

On January 2016 : by REC, Job Outlook Report, 

The recruitment and employment confederation (REC) published a Job outlook report in January stating the changes to different types of recruitment. In this article we will be looking at the short-term and medium-term outlook of recruitment. This focuses on both permanent and temporary employees. We will then take an overview of the employer, agency and labour market coming into 2016.
 
Short Term outlook – Permanent Recruitment
Despite the increase in the National minimum wage in April the REC believe that 92% of employers plan to hold or increase their permanent workforce over the next quarter. This shows us that in the near future there is hopeful growth in the permanent recruitment market. 79% of respondents claimed they aim to increase their workforce slightly over the next quarter, while a further 4% wish to greatly increase their workforce. This evidence shows us that more than ¾ of employers who responded aim to increase their workforce over the next quarter even if it is only marginally.

Medium Term outlook – Permanent recruitment
The medium term outlook is based on the REC’s focus on the next 4-12 months. Of the same respondents 96% believed that the medium term outlook is positive. A further 77% of employers are planning to increase numbers of their workforce. The level of available workers for recruitment coincides with the decreasing of the unemployment rate within the United Kingdom in 2015, the lowest it has been since the economic crash. Due to this, the quality of available skills may be significantly reduced thus intensifying competition among recruiters.

Short Term Outlook - Temporary Recruitment
The short term temporary recruitment looks to share a similar trend as permanent recruitment. An astonishing 99% of employers plan to hold (51%) or increase (48%) their workforce over the next 3 months. This includes the candidates that may shift from temporary to permanent recruitment also.

Medium Term Outlook – Temporary Recruitment
Over the next 4-12 months a remarkable 96% of respondents believe their use of temporary workers will increase or stay the same. This provides us with evidence that the temporary workforce is seeing positive foreseeable growth and has no signs of decline.
 
 
Employer 
Running up to December 2015, the recruitment industry claim the reduction of pay and reduced hours dropped significantly, this in turn led to 49% of changes being increased pay/earnings. A further 26% of changes were increased staffing. These two changes could show an employer’s focus for satisfaction and retention of their current workforce or perhaps this reflects the upcoming changes to legislation or the increase of the national living wage.

Agency worker convention
The REC asked employers how important agency workers are for the organisation in terms of their following, although not the most cost efficient method used by employers. 47% claim that it is the ability to gain short term access to key strategical skills that is cited as being of key importance, they are valuable when meeting an increase in demand. Of the responses the REC received, it showed 69% of employers turned to recruitment agencies to meet peaks in demand. A further 44% of employers used them to cover leave. Other reasons as to why employers use recruitment industries are to reduce costs, managing uncertainty, responding to growth, managing change and providing short terms key access to key strategic skills.

Labour market
2015 saw the labour market increase by 588,000 from 2014. From this figure self-employment contributed 45% (121,000) the level of vacancies also increased by 46,000 over the last year, this totaled as 765,000 in a year, and the highest since records began in 2001.

Unemployment
Unemployment in the UK fell to 5.1% down by 0.2% of the last quarter. This is significantly lower than the European average of 9.1% Youth unemployment rose slightly to 13.7% but is still drastically lower than the previous year of 16.9%

Skills shortage and quality of hires
The REC expects to see a shortage of skills and quality in 2016. 14% of employers anticipate that there will be a shortage of construction skills. A further 12% believe that technical and engineering will be affected as well as 11% which is driving and distribution.
 

You must be a member to see the full January report. See the attached link.

https://www.rec.uk.com/news-and-policy/research/employment-insights-into-the-world-of-work/jobsoutlook