Recent headlines suggest a recovering UK economy, but is this making it more difficult for businesses to recruit the right people?
The UK’s largest employers have raised concerns about a cooling jobs market, noting a slowdown in wage growth and a decrease in vacancies. The Recruitment and Employment Confederation (REC) and KPMG reported a decline in permanent staff placements in July, along with a reduction in wage growth.
Data from the Office for National Statistics (ONS) shows that unemployment fell to 4.2% in the three months to June, down from 4.4% in the previous three months. The ONS also revealed that estimated vacancies in the UK dropped by 26,000 to 884,000 in the three months to July.
Adding to this, PwC reports that nearly a quarter of Gen Z, aged 18 to 24, are struggling with long-term mental health conditions.
The construction sector, along with other skilled trades such as electrical work and plumbing, is facing persistent labour shortages due to skill gaps and an ageing workforce.
How Can Businesses Attract the Right People?
The market for candidates with specific skills and experience—technical or software skills, for example—is extremely competitive. To attract the best talent, your recruitment process must be as quick and responsive as possible.
If your business is operating under budget constraints, you’ll need to think creatively about offering attractive packages to candidates. Equally important is considering how to retain your existing staff.
Think about what you can offer to both candidates and current employees that will make your business stand out in the market. This includes ensuring a good work-life balance and providing opportunities for growth. It’s crucial to listen to your people and act on their feedback.
Lengthy hiring processes are a common complaint among candidates. It’s estimated that the average time to hire has extended to nearly six weeks.
Once you’ve hired your chosen candidate and they’ve accepted the offer, they’ll still need attention.
Ensure that each new starter feels valued and supported, not just by HR but also by their line manager. Poor communication and resistance to change are likely to deter new employees.