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Recruitment In Numbers - April Edition

Key Points from April Survey

  • Growth in permanent placements continues to slow, but temporary billings rise sharply.

  • Sharpest drop in candidate availability for 16 months.

  • Demand for staff remains strong from March.

Rec Chief Kevin Green says:

"Demand for staff is growing within all sectors and all regions of the UK, but there are fewer and fewer people available to fill the vacancies. We have the lowest unemployment rates since 2005, and people already in work are becoming hesitant about moving jobs amid Brexit uncertainty."

"As a result, candidate availability is at a 6 month low and recruiters are flagging a shortage of suitable applicants for more than 60 different roles from cleaner to accountant."

Skills Shortages

Construction, Engineering and Technology, and Health and Social Care were named as the top three areas where skill shortages have been found, and nearly half (49%) of UK employers expect difficulty when finding new hires.

For temporary recruitment, the key areas of concern were Engineering and Technology, Hospitality, and Drivers. 31% of employers anticipate a further decline in the number of temporary agency workers.

Importance of Agency Workers to Employers

The majority of employers asked in the survey (68%) said that temporary agency workers are important for them when they encounter peaks in demand.

59% of employers placed value on agency workers being able to cover staff leave/absences, and almost half (48%) said that temporary workers were essential in providing short-term access to key strategic skills.

Employer Satisfaction with Agencies Used in the Last Two Years

Over three quarters (76%) of organisations expressed satisfaction with the recruitment companies they used, and of those there were almost twice as many small businesses than large organisations stating this (26% and 14% respectively).

Criteria Used by Employers to Select Agencies

Quality of service, agency expertise and the price of workers all remain as the top most important factors when choosing an agency (94%, 88% and 80% respectively).

Satisfaction with Candidates

Overall satisfaction with candidates increased by a further four points this quarter to 75%. 18% of all UK employers said that they were very satisfied with the quality of candidates and 28% of London employers expressed this sentiment.

Agency Worker Pay Rates

61% of UK employers say that temporary agency workers earn the same pay rate as permanent employees and 19% say that they earn higher. This number increases in London to 34%.

When Experiencing Difficulties in Recruiting, Which of the Following Steps Have You Taken to Attract Candidates?

Employers who have experienced difficulties recruiting candidates say that the most common step to attracting candidates is re-advertising the role (80%). A significant proportion of employers (42%) also increased the wage/salary package in order to entice candidates.

Source: REC Jobs Outlook - April 2017