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This newsletter looks at and references the findings from the KPMG and REC UK Report on Jobs, produced on the 10th February 2022.

How has 2022 started?

The beginning of 2022 has continued along the same vein as 2021, with the steep rise of permanent and temporary vacancies paired with a decline of candidates looking for new positions. This pairing has resulted in the sharp rise of starting salaries at a near-record pace. Data from the Office Of National Statistics (ONS), showed the growth of permanent and temporary job vacancies across the UK in the final three months of 2021, with the total number of live vacancies standing at the highest rate since the series began over 20 years ago, with the number of vacant positions standing at 1.24million. 

What are the pressures facing candidates and companies right now?

The easing of Covid-19 restrictions is affecting both candidates and businesses for different reasons. Candidates have found a new sense of ‘freedom’ and have the desire to prioritize making the most of normality over finding a new career. However, organisations which started or experienced growth during the Covid-19 pandemic are finding themselves with a large workforce that may no longer be needed and a product/service that now has a decreased interest/need. Thus, requiring a new corporate strategy plan. As some companies face uncertainty, other organisations have an improved market confidence and now have a strong demand for workers to increase growth following the restraints caused by Covid-19. This growth of confidence resulted in a steep increase in recruitment activity across the UK during January.

Another understandably growing pressure on organisations and candidates is the concern over the cost of living and rise in inflation rates. Candidates are now facing the decision over remaining within their current role or seeking an increase in pay to keep up with the cost of living.

How are these pressures effecting recruitment?

Neil Carberry, Chief Executive of the REC said, “Recruiters are working hard to place people into work as demand from employers continues to rise”. Companies are therefore competing to retain and recruit top talent by raising their starting salary pay rates resulting in the third-sharpest rise in pay rates on record since 1997.

The report findings have also shown a sharp rise in temp billings and that January had the quickest rise of temp billings since August 2021. Reports from panel members indicated that the strong demand for workers resulted in organisations filling vacant roles quickly with temporary assignments and short-term contracts.

The report also shows the strain of skills shortages and significant growth of permanent and temporary vacancies across certain sectors. In particular the IT and Healthcare/Medical sectors are facing significant workforce shortages accelerated by the Covid-19 pandemic. The slowest upturn of vacancies was seen in the retail sector due to more retail companies focusing on their online business and closing outlets across the UK.

We ask our Associate Director, Donna West, what her current perspective on the market is...

The candidate market is an interesting place to work currently, the market continues to move at the fastest pace I have seen from my 23 years in recruitment. There are still high quality, skilled candidates looking for their new job, however it is truly a case of fasted finger first for companies to secure these people within their business. A delay of 48 hours in this marketplace can mean the person has secured a role elsewhere. What are the companies doing that are securing new employees over those that aren’t you may ask? They work with us to outline fast, effective processes, providing quick feedback on CVs and interviews and looking where they can be flexible in terms of skills and experience – what are their NEEDS and what are their WANTS- In reality these are 2 different lists but in the past they have most definitely blurred into one, whereas now companies are considering what the MUST haves are and what the IDEALS are. For each business we partner with, the key is if you are truly able to work in a consultative way, if you can then the job you need to fill, can be filled. 

Conclusion and key findings

To conclude the newsletter, we sum up the key findings based on the KPMG and REC UK Report. The overall growth of vacancies has eased but still remains sharp and above the series average. There has been a substantial increase in permanent placement and temp billings due to the rise of company pay rates and improved bonus packages. The decline in the number of suitable candidates has pushed starting salaries up for yet another month.

Looking to hire for your company? Why not contact us to submit a vacancy.

Email: admin@busybeerecruitment.co.uk

Head office: 01353 880253 / Cambridge office: 01223 628740