As we finally enter the phase of pandemic restrictions easing, it’s improved the market confidence, which has driven strong demand for workers. Since last August, permanent and temporary placements have increased quickly and then at the start of 2022 recruitment activity continues to rise sharply.
The strong demand for staff and candidate scarcity have impacted salary inflation for permanent and temporary staff. This new found lack of candidate availability is putting pay pressures on companies.
Salary Bidding War
This could have an adverse effect on organisations, as most companies are facing a battle to bounce back at the economic damage caused by the pandemic and now the rising cost in energy bills. Not everyone can get into a bidding war to offer the best salaries.
Neil Carberry, Chief Executive of the REC comments:
“With competition for staff still hot, companies have to raise pay rates for new starters to attract the best people. And the cost of living crisis means there is also more pressure from job seekers who want a pay rise. But the pay is not the only important factor – companies must think about all aspects of their offer to candidates to ensure they get the staff they need. This will be important as firms’ spending is also under pressure from inflation.”
“Government’s role is to manage inflation, but also to ensure that they do not discourage investment – that is what will drive the economy to grow through this year. Now is the wrong time to raise National Insurance, the biggest business tax. But politicians should also consider longer-term workforce planning, ensuring we have the skills the country needs for the future. This will take a collaborative effort between the public and private sectors, and the recruitment industry stands ready to help.”
Add to this the mental wellbeing and changing workplace landscape there is a lot for organisations to consider when trying to attract candidates. The changing workplace expectation is imperative to ensure employee satisfaction, business growth, and positive impact from an organisation’s perspective.
Digitalisation Trends Affecting Recruitment
Digitalisation trends have accelerated change and championed remote working.
The future of work depends on each job role and industry, but don’t be afraid to try new technologies for onboarding processes. Being flexible and agile will open up structures and help your organisation stay relevant for prospective employees.
Pair this with incorporating a health and well-being initiative for employees to open up the conversation on mental health struggles among fellow employees. Exchanging ideas and experiences about managing work-life balance can provide a competitive edge and a more personalised workplace experience.
Choosing the right recruitment partner
The majority of candidates will want to know there is potential for growth, development and salary increments. Candidates are more likely to invest their talent in a company that’s willing to invest in them. If you choose to work alongside external recruiters, they will take the time to know your business well and will be able to communicate your values to recruit staff who will thrive in your environment.
Contact us for more information on recruiting in this current market or to discuss how we can help you with your recruitment needs.