Despite the recent upturn, employers are finding it difficult to recruit for permanent positions due to more candidates favouring temp/contract work … and as a result, they are having to offer increased salaries.

What’s the word in business?

The Recruitment and Employment Confederation (REC) and KPMG statistics—up to date guide to the UK labour market—Key Points: June 2014—permanent staff shortage ‘rate of contraction accelerated to the sharpest seen since 1997’,  also—availability of contract staff steeply deteriorated too; worst in June this year since 1998. The June Survey: What this means?

  • For 26 months in succession, salaries have been on the rise.
  • Contract pay rates recently risen more sharply than since 2007.
  • Placements on the rise.
  • Top of the Regions for Permanent Placements: Midlands, followed by southern areas of the UK.
  • However, the North are increasing their temp posts.

What does REC CEO, Kevin Green think? ‘Record growth in starting salaries’ however… ‘the number of workers available to fill vacancies [June 2014] plummeted to an all-time low’ So, what does Mr Green suggest? Since the market is currently candidate driven, businesses must act and sharpen their hiring procedures.

Notecandidate driven market—Carpe Diem!

Bernard Brown, Partner and Head of Business Services at KPMG agrees: Despite record breaking starting salaries, ‘candidates are not easily swayed’.  However—take precaution—this large starting salary bubble cannot last, warns Mr Brown. A YouGov survey of 4,234 adults found

  • 10% have been freelance
  •  10% have been a contractor
  •  24% have been a temp
  •  40% who now earn >£30,000pa, have worked as a freelancer,contractor or agency worker
  •  22% who now earn >£50,000 have been agency workers
  •  36% who now have hiring responsibilities have been an agency worker

While JobsOutlook said that…

  •  78% of employers plan to recruit more permanent staff over the next 4-12 months
  •  87% of employers plan to recruit more permanent staff in the last quarter
  •  47% of employers plan to recruit more agency staff in the last quarter
  •  42% of employers plan to recruit more agency staff over the next 4-12 months

What does it mean for me?

Back to Kevin Green, the REC CEO: It’s not ALL about the money… Your talent can be rewarded in many ways, do you ever think about asking for…

  • Flexible hours?
  • Great benefits package?
  • Nice environment to work in?

Last word from the Office of National Statistics: quarterly GDP, 2003-2014.

  • GDP in 2003—£340bn
  • GDP in 2008—£390bn
  • Big dip in 2008-2009…
  • GDP in 2014, Q2—£395.5bn

Even the IMF are saying the UK is set to expand by 3.2% this coming year—having predicted 2.8%