Demand for talent has increased by at least 29%
Please - Pass This On
Election Year is going to see the pendulum of power swing from Employer to Candidate, according to three major Reports published last month.
As our post from last year about STEM shortages also eluded to when we highlighted the skills shortage and what organisations should be looking to do as the need for STEM skills increases (across the whole of Europe, not just the UK).
Demand for talent has increased by at least 29% according to a new survey from the Association of Professional Staffing Companies (APSCo), while the latest research from the Institute of Leadership & Management (ILM) predicts that 37% of UK workers are preparing to leave their current jobs – an astonishing increase from 2014 (19%) and 2013 (13%). The findings of both these reports align with recent figures released by the CBI, which reported that half of British businesses are planning to expand their workforce in 2015.
A double-digit growth in permanent vacancies is happening across the board, with Media & Marketing (15%), Finance & Accounting (16%) and IT (31%) all seeing impressive year-on-year increases – and Engineering experiencing a quite extraordinary 53% surge, due in no small part to major infrastructure projects such as Crossrail and HS2.
With inflation at an all-time low, crude oil prices in decline and salary increases in control, there seems to be clear skies for sustained economic stability – and bright new horizons beckoning for many professionals.
However, despite all this positivity, APSCo warns that it remains to be seen what impact the General Election will have on the professional recruitment market. The latest Deloitte CFO Survey, for example, reveals that May’s General Election is of major concern to organisations. When asked to rate the level of risk posed on a scale of 0 to 100, CFOs attached a 63 rating to the General Election – significantly higher than the 56 attached to deflation of the Euro or the 39 points awarded to further cuts in spending. This may be because many analysts have predicted that, given the surge in support for smaller parties such as Ukip, the SNP and the Greens, a hung parliament is a real possibility. For this reason, companies are likely to remain cautious surrounding hiring in early 2015, as CFOs resist investing in talent until the political landscape is less volatile.
So although Ann Swain, Chief Executive of APSCo commented: “The fact that Deloitte has found that CFOs believe business investment in the UK will rise by 9% this year – higher than other major industrialised nations – indicates real optimism in the future of the UK economy. This positivity is mirrored in the ambition of the many UK professionals who are planning on switching roles in the coming year”, John Nurthen, Executive Director, Global Research for Staffing Industry Analysts (which compiles the report for APSCo) noted:
“It is unfortunate that the early part of 2015 will be shrouded in uncertainty given upcoming elections.”
Industry veteran Nurthen explains:
“What potentially makes this electoral uncertainty even more damaging this time around is that a win for the Conservatives (either by a majority or with coalition partners) means that there will be an In-Out referendum on the UK’s membership of the EU by the end of 2017. So, even with the election concluded, we might be facing a two year hiatus when business will not know whether the UK will remain a member of the European Union or not. For many employers, business planning for 2016 and 2017 may become a somewhat myopic affair.”
May’s election might well bring increasing uncertainty – but for now, UK plc is being dictated to by a buoyant recruitment market that has delivered power into the hands of the Candidate.
Please - Pass This On