As 2016 came to a close, REC reports the “strongest rise in permanent appointments in one year”. In its latest monthly labour market report the monthly report commissioned by REC and complied by IHS Markit indicates that permanent placements increased at their fasted rate since February and there was a sharp fall in the availability of both permanent and short term staff. Permanent salaries in the UK also increased for the fourth consecutive month, with increases in the North outpacing the rest of the UK.
REC Chief Executive Kevin Green says: “The jobs market is ending the year on a high with appointments and vacancy levels not seen since February. In all parts of the UK recruiters are reporting increasing demand”… “The main concern as we look forward to 2017 is an increasing skills shortage. The UK employment rate is at a record high and jobs are going unfilled in key areas.”
The report highlights key skills shortages in the following areas directly relevant to our customers as: Chartered Engineers, Technical Sales, Marketing, Project Managers, Management Accounts and Finance staff.
With our own research showing counter offers running at new peak levels and active candidates enjoying a choice of opportunity (an average of 3 offers per job seeker), being prepared to fight your corner in the war for talent is going to be even more critical in the first quarter of 2017.
To help you prepare, we suggest you consider the following questions:
- How long has your job been open?
- How long do vacancies generally remain open at your company?
- What is the main reason why people accept jobs at your company?
- What is the long term cost of the job remaining unfilled?
- What else can you offer beyond salary?
- What is the purpose of your business, which staff engage with?
- What will you do if you find someone who you want to recruit, who is above budget or receives an above budget counter-offer?
- Are you happy recruiting people who offer less skill/experience/competence as a trade-off for paying below market rates?
- What is the lifetime value of a strong person in this role for your business?
If you feel you are offering just slightly above the going rate, consider that the person you want will probably receive an even bigger counter offer from their current employer. Good employees are worth a lot to a company over the full tenure of their employment. Good employees add shareholder value, they introduce new opportunities to your business, they bring you new ideas, they get things done, they improve the average of your crowd, they can provide you with succession planning, they provide you with sustainability, they improve the multiplier of your company if you are preparing it for sale, they have the potential to grow others in your team, and they raise your standards.
Being confident you have the right person to recruit requires rigour and process. Working with Euro Projects Recruitment ensures the market for suitable talent is comprehensively searched, all candidates are interviewed for cultural as well as technical suitability and we work with you to test and predict the success of the people you choose to appoint. Our process results in 81% of the people we place still being in post beyond their first twelve months, with 72% of these accepting additional responsibility in this time.
With this level of confidence in the person you wish to appoint, you can make a compelling job offer to attract your person of choice. With counter offers averaging an increase to salary of 17% and the opportunity for a long overdue conversation to take place between the incumbent employer and the neglected employee, the risk of losing your opportunity to appoint a good person increases in direct proportion to the standard of your offer. Whilst we appreciate that salary offer is only one driver for someone to change employer, your ability to hire good people quickly goes down in direct relation to the value you place on them.
For more insights into salary levels and benefits packages in your sector, becoming an employer of choice, or to find and appoint key technical and executive staff in engineering and manufacturing contact us here.