Business Reflection: HR & Recruitment Trends | Hiring Strategies

Business Reflection: HR & Recruitment Trends

2022 has certainly been an economic and political rollercoaster. As always in such uncertain times, some industries have prospered, while others have struggled. In this business reflection, we look at HR and recruitment trends along with the current state of the economy.

Cost-of-living crisis

Due to rising energy bills, inflation and interest rates, partly caused by the war in Ukraine, we are experiencing the worst cost-of-living crisis in decades. The rapid increase of costs for goods and services is having an impact on people’s disposable income. As a result, many employers are reported to be increasing salaries, so they can retain existing employees and attract new team talent. Sadly, there are also many companies that have become insolvent.

The cost-of-living crisis is taking a financial, emotional, and sometimes physical toll, on everyday people. There has been a reported fall in mental wellbeing rates. Along with the pressure for companies to increase employee wages, where possible, they are also being encouraged to support those who are facing challenges. Many companies are training Mental Health First Aiders to help identify employees who are struggling on any level.

The Budget
Chancellor Jeremy Hunt announced a freeze on income tax thresholds in his recent budget announcement, along with many reversals of the previous Chancellor Kwasi Kwarteng’s measures. However, many economists are suggesting that unless wages rise, this could be harmful to the average taxpayer. As bills increase, this could effectively result in a higher tax rate for taxpayers. In 2023, the “national living wage” will rise by 9.7% to £10.42 per hour.

The Chancellor also confirmed the repeal of IR35 rules will not go ahead. This means the onus is back on employers to determine a contractor’s employment status. Many companies are calling for greater clarity on IR35, as there is too much confusion on these rules. Some leaders are suggesting the need for statutory legislation to clearly define the difference between an “employee” and a “self-employed worker”.

Skills shortage
The UK is also suffering a big skills shortage, which isn’t being helped by ever-changing government policies. As a result, recruiters are finding that many business leaders are focused on innovation and growth, looking ahead instead of being distracted by short-term issues.

Health and social care is the top sector reporting a skills shortage, followed by food and accommodation services. Professional services, scientific and technical roles are in third place, and professional candidate shortages are most visible across mid to senior level roles. Companies are struggling to find people with technological skills - Senior Software Engineers are one of the most highly sought roles.

Candidate market

Job vacancies in the UK are still at an all-time high. According to the Office for National Statistics (ONS), in the first quarter of 2022, there were 1.29 million positions waiting to be filled. This was around 500,000 more than before the pandemic. ONS also reported a decrease in the unemployment rate between July to September 2022 compared with April to June 2022.

Research analysis by the John Moore’s University shows that the number of active job postings has remained “relatively stable”. Since mid-August, there have been between 1.4 and 1.5 million active adverts. If you’re an employer, it’s important that you create a compelling value proposition and job advert, so you can attract quality candidates.

What does this mean for employers?
Unless employers are able to offer strong value propositions, they may miss out on recruiting suitable candidates and top talent. Many industry sector experts are reporting that any scaling back on professional development or flexibility in the current economic crisis could be misguided. There’s a risk of creating a disconnect between what companies are offering, when compared with what candidates’ want in a post-pandemic world.

If you are looking to recruit new workers, it’s more important than ever to seek advice from a professional recruitment agency. Whether you’re seeking candidates for commercial, industrial or manufacturing roles, we will support you through the entire recruitment process. And if you’re a job seeker, then send us your CV today. One of our consultants will be in touch to arrange a chat about your current situation, so we can match you to the right role.

Book a call with one of our friendly consultants today. Email: enquiries@hsl1uk.com to arrange a date and time.

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