MSC headhunters Blog

Recruitment consultants have signalled a drop in the number of people placed in permanent jobs for the third successive month in December, according to the Report on Jobs published today by the REC and KPMG. The rate of contraction was at a similar modest pace to that seen in November.

Key pointsof the Report are:

·       Modest decline in permanent staff appointments
·       Temp billings decrease for first time since July 2009
·       Permanent salaries broadly flat; temp pay down slightly
·       Growth of candidate availability accelerates

Agencies’ billings from the employment of temporary/contract staff declined in December. Although marginal, it was the first reduction in almost two-and-a-half years.

Permanent staff salaries remained broadly stable in December, rising only fractionally on the month. Temporary/contract staff hourly pay rates fell slightly for the first time since January.

Growth of candidate availability accelerated markedly in December. The latest increase in permanent staff availability was the sharpest in two years, while temp availability improved at the fastest rate since October 2009.

Kevin Green, the REC’s Chief Executive, says:

“The report highlights a third month of contraction in permanent placements and a reduction in the use of temps for the first time in more than two years. While the jobs market is tough it remains resilient and is functioning well. There are clearly signs of decline but we are nowhere near the lows seen in 2009 when the market deteriorated at a drastically faster rate than we are seeing today.

“Employers are still hiring and using temps in large numbers; however, they are starting the year on a cautious note and are taking their time to make workforce decisions. The quicker the Eurozone sovereign debt crisis is resolved and we get some economic visibility, the better it will be for employer confidence and the UK jobs market.

“The sector analysis shows that some sectors remain strong, namely engineering, technology, IT, office professionals and we’ve also seen a surprising increase in demand for nursing, medical and care despite ongoing austerity measures. However, the finance and accountancy market has been in negative territory for two consecutive months and the hotel and catering sector has seen a significant downturn over the past two months.

“This might be a short-term blip as we build up to a peak of demand around the Olympics itself but it could also be a worrying indicator of a lack of engagement in the Olympics from both business and consumers.

“Overall, the cautiousness in hiring seems to be driven by a lack of confidence in the wider economic situation than a significant downturn in demand. For example, in the last month’s survey of employers (JobsOutlook), a total of 71 per cent of them said they still intend to increase their permanent workforces in the coming year and this month’s Report on Job shows that vacancies remain strong.”

Bernard Brown, Partner and Head of Business Services at KPMG comments:

“It is a huge concern to see temporary placements falling in tandem with permanent employment opportunities, making it difficult to be optimistic about the employment market in 2012.  The decline in temporary roles, seen for the first time in almost two-and-a-half years, is a clear indication that businesses are too nervous to even make short-term commitments, given the continued uncertainty across the Euro Zone and so much talk of a tough year ahead.

“With fewer jobs available, employers could be forgiven for thinking they have the pick of the market, but sadly the reality is far different.  The latest data suggests that, in the key industries of engineering, construction and IT, attempts to fill the gaps that do exist remain unsuccessful. It seems that employers are refusing to offer jobs just to ensure vacancies are filled, meaning that long-term unemployment trends look set to continue.

Credit: onrec.com

The REC has today called on Government to rethink plans to remove compulsory work experience for GCSE students. Enhancing awareness of the world of work was a core message of the REC’s Youth Employment Taskforce and the feedback from recruiters confirms that more needs to be done to prepare future generations of workers.

The Department for Education is currently consulting on plans to remove the statutory requirement for 14 to 16 year olds to complete at least two weeks of work experience. Other employer bodies such as the Forum of Private Business (FBP) have also underlined the need to maintain and enhance practical experience of the workplace.

Tom Hadley, the REC’s Director of Policy and Professional Services, says:

“The feedback from recruitment professionals is that we need to do more to prepare young people for the workplace not less. Practical work experience is a key part of building better bridges into the labour market.

“Even short stints with employers provide a crucial eye-opener and can help young people make more informed decisions about future studies and career paths.  It is also about understanding what businesses are looking for not only in terms of skills and qualifications but also in terms of attitude.

“We are currently asking employers and recruiters to step up and help make a difference through business led initiatives. Our own Youth Employment Charter for the recruitment industry is just one example of this. However, it is crucial that schools continue to play their part. The benefits of work experience for students need to be actively promoted not demoted.”

On Monday the 16th of January Brightest Minds will be delivering ‘Launch your career in…Banking and Finance’ a career insight and networking event for students looking to enter this competitive industry sector.

This event comes as the growing concern amongst graduate employers and industry bodies continues to intensify over the lacklustre approach of UK candidates to the graduate market. This is in stark comparison to their international counterparts and as a response leading graduate employers are urging candidates to develop ‘global employability skills’.

The demand for graduates to adopt a more global outlook has been highlighted by the Association of Graduate Recruiters’ recent research into the core competencies of global graduates.

The leading graduate employers that participated in the research (who between them recruit more than 3,500 graduates each year) cited multicultural collaboration as the most important competency they looked for in potential candidates.

In response to the research Carl Gilleard, Chief Executive of the AGR commented that “there needs to be a collaborative effort to facilitate opportunities for industry to introduce the idea of global business activity as early as possible”.

Brightest Minds identifies the need for global graduates to exhibit a diverse range of skills and this event will look to encourage development in many of the AGR’s key competencies. The 35 screened and specifically invited students will take part in a series of business coaching sessions focussing on communication, the importance of self-awareness and emotional intelligence – with a clear emphasis on providing students with ‘global employability skills’.

A series of presentations from leading industry figures as well as a panel discussion and networking session will give further insight into opportunities across the banking and finance sector, as well as providing students with an opportunity to employ these sought after skills.

Brightest Minds refutes the assertion that UK graduates lack a ‘get-up-and-go’ approach to finding graduate opportunities. Those who form part of the Brightest Minds network gain access to exclusive events and coaching sessions such as this, which look to equip them with the global employability skills employers are prioritising amongst candidate competencies. Brightest Minds invests heavily in nurturing the graduates involved in their network and events such as this illustrate the quality of candidate clients can expect to encounter.

Employee Assistance Programmes, valuable support services usually reserved for large companies, are now available to SMEs. This follows the announcement that Right Management, a global leader in talent and career management workforce solutions within ManpowerGroup, has become the preferred partner of Croner. Croner is the UK expert in workplace information, software and services, part of Wolters Kluwer.

The Employee Assistance Programme service will be provided by Right Management through Croner Simplify, a unique proactive HR solution aimed at the SME market. Users of the service will have access to:

• 24/7, 365-day helpline which gives immediate emotional support, debt management services and general advice and information.
• Unlimited access to online information including podcasts and downloads covering a wide variety of topics.
• Individual counselling sessions, either face-to-face or by telephone depending on the preference of the individual.
• Day 1 intervention for stress – a proactive service which aims to assist and support employees suffering from stress-related issues to return to work, or stay in work.
• Occupational health telephone line.
• Management support to assist with the softer skills of managing teams and people issues.
• Andrew Walker, Head of Business Development at Croner, says: “EAP programmes have long-been viewed by corporate businesses as a benefit to employees that are suffering from personal and work-related issues, but are now a key strategic intervention for organisations who wish to improve productivity and reduce absenteeism.

“By partnering with Right Management we can offer our Croner Simplify customers with a solution that would not otherwise be available to them. Access to this service will help to improve the wellbeing, motivation and productivity levels of their workforce and in turn save them precious time, money and resources.”

David Elliott, Business Development Director at Right Management, adds: “According to the CBI, the average cost of absence is £760 per employee1. Even reducing one person’s absence and improving productivity will pay for the cost of the service. Croner customers will not only benefit from this cost saving, they will also have the added benefit of an independent company of wellbeing experts who complement nicely the existing HR services on offer.”

Credit: onrec.com

The latest data from the Recruitment and Employment Confederation’s JobsOutlook shows that demand for temporary staff over the past month has remained stable and is up on the same time last year despite new regulations on agency work coming into force in October.

The short term outlook for the agency work market has improved by three points with a total of 81 per cent of employers planning to either grow or keep their agency workforces at existing levels. Within this, a significant proportion of employers - 31 per cent – are planning to actually increase their temporary staff. This compares to 22 per cent at the same time last year. In the longer term, a total of 83 per cent of employers are looking to grow or keep their temporary staff levels the same in the next 12 months.

The latest JobsOutlook shows that 52 per cent of employers made changes – including staff training - ahead of the Agency Workers Regulations coming into force on October 1. Another 39 per cent said they did not make any changes while nine per cent said they were not sure. The number of employers planning to make less use of temporary staff due to the AWR was 7 per cent down on the previous month, perhaps reflecting increasing recognition that in most sectors the impact of the regulations on clients will be minimal.

Commenting on the latest figures, REC Chief Executive Kevin Green says:

“The ongoing economic uncertainty has clearly influenced hiring patterns. Using temporary and contract staff is an attractive option and continues to provide a means of bringing in the right skills at very short notice.

“There is no doubt that the AWR has created significant cost and bureaucracy for agencies. At the same time, the need for agency staff is well established. The main impact to date has been the development of new supply models rather than any sort of collapse in demand for temp and contract labour. These are trends that we will continue to track as we approach the first 12 week milestone.”

JobsOutlook is based on a monthly survey of employers with results based on a sample of 600 on a three month rolling basis.

Credit: onrec.com