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            Has Panic Buying Hit the Job Market?

            13th October 2021

            The Recruitment & Employment Confederation (REC) said, in their Report on Jobs survey last quarter, that an employee reluctance to switch roles due to the pandemic, fewer EU workers and skill shortages were contributing to the staffing squeeze. Lingering pandemic uncertainly is also very likely to be a key factor in the availability of suitable candidates in the market.

            All of these factors are putting upward pressure on starting salaries and some are panicking to get new hires through the door by compromising on skill levels and qualifications. This short-circuits the hiring process and is detrimental for morale, culture and retention.

            Though the furlough scheme ended on 30th September, it’s looking unlikely that we’ll see a large influx of suitable candidates in the final quarter of 2021, as many business’ have restructured to meet the needs of the pandemic.

            The CIPD Work Trends summer report found that there was an influx in recruitment intentions – 69% of employers planned to recruit in the three months to September 2021, a 20% increase on the previous year. Redundancies meanwhile remained low, with just 13% of employers expecting to make job cuts. The report also found that 81% of employers planned a pay review between now and June 2022. Among them, 33% expected a pay increase, 12% a freeze and 1% a decrease. The intention to recruit has certainly translated into larger numbers of vacancies in the engineering and technology fields. We have noticed that the rise in vacancies and reduction in candidates has seen an increase in pay and packages in some but not all roles.

            At Linea we encourage business’ to consider upskilling and retraining to fill even the toughest of roles; a close review of wage and particularly of benefits packages, as well as putting a clear strategy in place to meet the need for hybrid working. The importance of job security should not be overlooked, and communication is crucial to update and reassure your workforce, existing and new.

            “Covid has changed the recruitment and career landscape forever”, our MD Mike Gorshkov comments, “at the start of Covid, many businesses were quick to ensure continuity by implementing home working. Such a change en-masse was unimaginable until necessity dictated. Many employees experienced real flexibility for the first time and the desire for this flexibility to continue is driving the hiring market now and will do for some time to come. The bottom line is if you are not offering a degree of flexibility and wfh, where it’s feasible for the role you’re not in the game when it comes to attracting talent to your organisation. Even then its not an easy ride to hiring the talent you need. Making sure you are maximising every channel to market and partnering with tried and tested suppliers is vital to keep ahead of the market and your talent competitors”

            Many in the hiring process may empathise with the words of Kate Shoesmith, Deputy chief executive of the REC: “Recruiters are working flat out to help find the best people but there are shortages of workers in almost every sector across the country.” The team at Linea is working incredibly hard to support our clients with the challenges they’re facing.

            In our next blog we’ll be looking at Candidate Retention – Making Sure, Once You’ve Hired Them, You Retain the Best Talent

            Posted by Mike Gorshkov

            Managing Director at Linea Resourcing

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