Get the latest jobs sent right to your inbox Learn More
The United Kingdom has lost 1.3 million jobs during the recession, according to a report by the Chartered Institute of Personnel and Development (CIPD). Yet, employers are finally feeling a renewed sense of hiring optimism, according to a new survey from CareerBuilder.co.uk.
In the first quarter of 2010, thirty-nine per cent of UK employers reported they plan to hire full-time workers in the next 12 months. Twenty-six per cent plan to add part-time help while 21 percent expect to employ contract or temporary workers. The nationwide survey of more than 100 UK business leaders across industries was conducted from 29 April to 7 May on behalf of CareerBuilder.co.uk.
While the job market recovery will take some time as employers face new market realities and weigh staffing needs, this is a positive sign for job seekers. In addition, it is also welcome news to workers who have been strained by heavier workloads and longer hours caused by their employers' staffing reductions.
"Companies are starting to change their focus from cost cutting to growth and they're bringing back those areas most closely tied to revenue first," said Farhan Yasin, President of CareerBuilder EMEA. "We expect to see gradual improvements in hiring in the second half of 2010 and into 2011, rather than a dramatic shift. Employers will remain cautious as they respond to new market dynamics."
Top Functional Areas for Hiring
Sales is the top area where UK employers said they will add jobs first with 46 per cent planning to recruit new sales employees in the next 12 months. Other key areas include:
- Customer Service - 22 per cent
- Information Technology - 22 per cent
- Adminstrative - 22 per cent
- Accounting/Finance - 16 per cent
- Marketing - 14 per cent
Compensation
More than half of UK employers (57 per cent) reported that pay will be the same for new employees in the next 12 months compared to the previous 12 months. Twenty-eight percent expect it will be higher while only 2 percent anticipate it will be lower than the previous 12 months. Others declined to answer.
Skills Shortage
Despite having an abundant labour pool to choose from, 28 per cent of companies reported they currently have open positions for which they can't find qualified candidates. Sixty-two per cent believe there is a national skills shortage.
"As the country's financial health improves and the labour market recovers, you may see an even bigger gap between talent supply and demand in specialized areas," said Yasin. "Employers are taking measures today to improve their talent benches and retain top performers through investing more in training, flexible work arrangements and new recruitment strategies."
Here are seven trends hiring managers and human resource professionals said they foresee regarding staffing in the second quarter of 2010:
1. Hiring across borders - If you are a professional from outside the UK willing to relocate - now is your time. One-in-four employers (25 per cent) have hired someone from outside their country in the last 12 months. More than half (55 per cent) said they had not hired someone from outside their country, but would be willing to do so. The functional areas for which employers are primarily recruiting outside of their country are in business development, accounting/finance, information technology and communications.
2. Rehiring laid off workers - Look who's back! So they may have made you redundant sometime over the past year, but now that employers are hiring again, you may just walk back into your old job. Of employers who reported they had layoffs in the last 12 months, nearly one-third (32 percent) said they have already begun or are in the process of hiring back employees.
3. Freezing compensation - If you finally want to ask for your long-deserved pay raise this year, now may not be the right time. Forty-five per cent of employers have instituted a pay freeze in the last 12 months to manage through a tough economy.
4. Upgrading talent - Watch out if you are not that hard-working, exceptional employee. Companies are re-evaluating their current staffs to prepare for the upturn ahead. Nearly one-in-five employers (19 per cent) are taking this time, when there is a larger pool of available talent, to strengthen their teams by replacing lower-performing employees with top performers.
5. Offering more flexibility - In an effort to retain and attract workers, 61 per cent of employers said they will be offering flexible work arrangements for employees this year. Alternate schedules (ex: start and leave early) and compressed workweeks (work the same hours, but in less days) are among measures being employed.
6. Investing in professional development - In order to meet industry needs right now, employers are emphasising continuing education of their staff. Nearly two-in-five employers (39 per cent) are investing more in outside training for employees to sharpen skill sets and provide learning opportunities that are in demand.
7. Postponed start dates - Employers are securing talent early while postponing expenses associated with additional headcount. One-in-ten (11 per cent) have offered jobs with start dates later in the year.
