Recruiters are finding it difficult to hire new staff due to increasing competition for highly skilled employees, a study has found.
Of 400 recruitment agencies surveyed by IHS Markit for the Recruitment and Employment Confederation (REC), 40% found the availability of temporary staff had got worse in July 2017 compared to the previous month (35%).
In addition, 43% said it was the same for permanent staff (up from 41% in June).
This has generally resulted in permanent staff commanding better starting salaries, with earnings growth reaching a 20-month high.
Demand for staff in private sector businesses outpaced demand in the public sector over the same period, while the biggest increases in year-on-year demand for workers was felt in:
- engineering (66% – up from 57% in July 2016)
- accounting (65% – up from 56%)
- IT (65% – up from 57%).
Kevin Green, chief executive of the REC, said:
“It’s clear employers are having to work even harder to fill jobs as vacancies rise and candidate availability shrinks.
“Employers are not just struggling to hire the brightest and the best, but also people to fill roles such as chefs, drivers and warehouse workers.”
With employers facing stiff competition for staff, it’s proving more challenging for businesses to attract and retain the best talent.
There are ways, however, to attract new workers or retain your existing skilled staff. These include:
- offering flexible working arrangements
- investing in career development
- providing additional benefits, i.e. attractive pension contributions, company cars, entertainment incentives
- performance-related pay rises.
Get in touch to discuss your business issues.