Accessability Links

Recruitment in Numbers - August Edition



KEY POINTS FROM JULY SURVEY

  • Employer confidence dropped in July with more companies that think economic conditions are worsening (31%) than improving (28%).
  • 40% of employers have absolutely no space capacity within their organisation - up 6 percentage points on the last rolling quarter and 5 points year-on-year.

SKILLS SHORTAGES AND QUALITY OF HIRES


The top three areas where employers are expecting skills shortages this month are; Construction, Health & Social Care, and Engineering. In particular, the Construction sector is extremely vulnerable to the ongoing uncertainty for EU workers.

Employers anticipate a shortage of temporary candidates within Construction, Engineering and Hospitality. Theses sectors in particular rely heavily upon non UK national labour and, as Brexit negotiations continue to cause uncertainty over EU workers' future rights, employers are clearly concerned.


IMPORTANCE OF AGENCY WORKERS TO EMPLOYERS


Agency workers are becoming increasingly more important to employers especially when helping to manage uncertainty (+2 percentage points to 39%). Year-on-year, the importance of agency workers in enabling employers to 'respond to growth' increased by 5 percentage points whereas 'helping to keep running costs down' fell by 12 percentage points.


EMPLOYER SATISFACTION WITH AGENCIES USED IN THE LAST 2 YEARS


76% of employers expressed satisfaction with agencies they have used, a significant increase from 63% last month. This has also increased year on year from 73% in the same quarter last year.


CRITERIA USED BY EMPLOYERS TO SELECT AGENCIES


The two key areas of importance to employers when selecting agencies remained the same ('quality of service' and 'agency's regional and sector experience'). The 'price/cost of workers supplied' increased significantly this month by 7 percentage points (68% to 75%).


SATISFACTION WITH CANDIDATES


The percentage of employers expressing satisfaction with candidates stayed the same this month, (74%). There were also some key improvements in satisfaction levels across the regions. Year-on-year, satisfaction levels in the midlands rose from 63%-69%, and the proportion stating that they were satisfied in London rose from 75%-83%.


AGENCY WORKER PAY RATES


The percentage who said temporary workers' rates were lower fell from 18% in May to 6% in July, whilst those who said they were higher increased from 11% in May to 27% in July. New regulations introduced in April could have contributed to this trend.


RECRUITMENT CHANNELS USED


Direct approaches from candidates declined significantly this quarter for both permanent and temporary recruitment (56% and 50%). This could be due to the tightening of candidate availability.



Source: REC.com