Employers are facing difficulty recruiting candidates with almost half increasing the salary on offer to compete for the best talent according to the REC’s latest JobsOutlook survey of 600 employers.
With unemployment at an 11 year low of just 4.7%, wages are rising above the rate of inflation, which is currently 1.8%, but the gap has narrowed.
REC chief executive Kevin Green commented: “Throwing money at the problem isn’t a long-term solution for employers, as they compete with each other for the available talent.
“We need to train people up by embedding employability skills in schools, providing effective careers guidance and promoting apprenticeships. Employers should take responsibility for investing in training – it will help them retain staff and grow their own talent.”
80% of employers have re-advertised a role after being unable to attract suitable applicants after the first attempt and 24% have resorted to lowering the requirements of the role.
The REC’s latest JobsOutlook survey of 600 employers also revealed:
– 22% of employers plan to increase their permanent headcount in the next three months and medium term (the next four to twelve months).
– Construction, engineering/technical and health/social care are the three sectors where employers most anticipate a shortage of candidates for permanent roles.
– 19% of employers plan to increase temporary agency headcount in the medium term, and 12% plan to do so in the short term.
Louise Woodward, Associate Director at Bond Williams says:
“Employers are still actively hiring and willing to offer competitive salaries which is great news for people looking to change jobs. Even with the current job market tightening we are finding that increasing numbers of companies are choosing to work in partnership with a consultancy to help them find not just the best talent to hire, but also the best fit for their company culture.”