Pressure has been building in recruitment, with the demand for workers rising. The growth in the supply of labour isn’t keeping pace with the demand. The CIPD’s Labour Market Outlook has reported of an abrupt fall in the flow of EU nationals into the UK, coinciding with a drop in the quantity and suitability of job applicants being reported by employers.
This week we have also seen headlines that UK wages are rising faster than expected and unemployment continues to fall with the jobless rate remaining at its lowest level for over 40 years. The CIPD said the number of EU-born workers in Britain increased by just 7,000 between the first quarters of 2017 and 2018 which represents a 95% fall. Shortages are being reported by employers that rely on non-EU workers in sectors including IT, transport and construction.
Employers are also reporting less applicants for low, medium and highly skilled vacancies since the summer of 2017. Two-thirds (66%) of those with current vacancies report that they are proving hard to fill.
Following a prolonged period of relatively low pay growth the demand for skills and labour are increasing wage pressures for employers. This fierce competition for talent has led to many employers offering higher salaries when recruiting to attract the best people to roles.
The tightening of labour markets and the increasing pressures of recruitment are also boosting earnings of key staff in organisations to try and retain them. Investing in learning and development opportunities for employees is also key to retaining staff and ensuring they are upskilling their people. The talent pipeline and workforce planning are essential to developing key skills in an organisation especially in this competitive market. Missing out on these key skills means productivity and the bottom line are affected.
In this highly competitive and challenging job market which is constantly evolving, employers are under huge pressure to not only offer attractive salaries but additional benefits too. Offering good healthcare and a strong pension are important as is flexible working. Businesses need to think creatively about how they can attract and retain talent. Promoting a collaborative and empowering work culture with shared values between the organisation and its workers is one way to create a great workplace both to attract and retain this talent.