According to the KPMG/REC Report on Jobs– for the month of July – permanent staff appointments rose at their fastest rate since March 2010, with the number of vacancies hitting a six-year high. (The UK’s current unemployment rate stands at 7.8%)
Increased demand for permanent staff was recorded in all nine sectors included in the analysis, with engineering showing the fastest rate of growth. Second-placed for growth was the IT and computing sector, followed by the executives/professional sector.
The report also showed that pay growth is up, with the rate of inflation for permanent staff salaries now at its highest for more than two years.
What does this mean for employers and HR functions? They should be taking note and if they haven’t done so already, they should be planning their retention, recruitment and talent management strategies., As REC chief executive Kevin Green said “For some time staff have sat tight, refusing to move when job security was low. Now the best staff will be looking for better offers, so employers will need to strike a balance between recruiting new blood and retaining their best employees.”
Even during this long recession there has been a shortage of talent in certain business sectors and if this growth trend continues, employers will start to see a churn in staff numbers. The time for complacency is past and if employers don’t look after their employees, another will.
Too busy? LJK Resources can help you focus on the priorities for retaining and developing your people and planning for future recruitment.