What will happen?
Employers are competing for talent in the wake of continued Brexit negotiations with permanent and flexible placements up in March 2017 against y/y 2016.
Not only is the median number of placements increasing, but salaries have risen in ALL six major sectors reflecting talent and skills shortages, in the face of increasing demand for professional staffing candidates.
In the month when Article 50 was triggered – prior to the surprise announcement of a General Election called for June 2017 – median salaries across the professional staffing industries were seen to have increased by 0.8 per cent y/y with Financial Services leading the way at +3.5 per cent. This exceeds the labour market statistics released by the ONS on 12th April 2017 which shows growth in real term pay dropped to 0.1 per cent in the period December 2016 – February 2017.
Forward demand for placements, as highlighted by vacancies registered by hiring companies, is also showing slight growth as an average median, with talent hungry sectors showing a more dramatic need to fill vacancies e.g. Social Work +27 per cent and Marketing +6 per cent.
Commenting on the latest survey results, CEO of APSCo, Ann Swain emphasises that APSCo members are flexing to meet the needs of hiring companies who are concerned as to how they will meet their resourcing needs in the face of growing employment status, and increasing candidate shortages.
“As demand for placements via recruiters continue to rise, the search for talent is becoming more competitive, as evidenced by the increase in salaries and rise in forward vacancies registered by hiring companies.
“With the candidate-stream slowing down and skills shortages intensifying, we’re seeing greater rewards and retention initiatives being offered by hiring companies, as well as more consideration to flexible and interim assignments in a bid to find short term solutions.
“With a snap Election offering the opportunity to get skills, jobs and recruitment up the agenda not only from an internal perspective but also with regards to the Brexit negotiations, we hope that the Government’s election campaign will extend to legislation around trade and employment that will positively impact the professional recruitment sector directly and act as a catalyst to firm up strategies around skills and employment post-Brexit”.