Government Policy: Following the election, the coalition government has confirmed that significant cuts will take place, with impact on jobs in the public sector and serious fears of jeopardising the economic recovery. The newish Government will be tested on how to combine the critically important task of cutting the fiscal deficit with meeting the equally important challenge of restoring full employment.
Employment: The total number of people out of work rose by 53,000 to 2.51 million in the three months to March, the highest total since the end of 1994. In Q1 2010, the employment rate in the UK was down by 0.3% t0 72.1% - the lowest rate since Oct 96 (Source: ONS Apr 10). The number of full time workers fell by 103,000 over the quarter. So, we’ve seen fewer jobs, and more people working part time to compensate for not being able to find full time employment. Our own Monster Employment Index indicates employer demand in the labour market rose in Q1, with overall opportunity levels higher than they were at the beginning of 2009.
Next week’s emergency Budget will set out a comprehensive and credible plan to eliminate the bulk of the structural deficit over the course of this Parliament. The coalition Government will be tested on how to combine the critically important task of cutting the fiscal deficit with meeting the equally important challenge of restoring full employment.
Employment outlook: The UK jobs market continued to improve in May. While month on month momentum has slowed from the recent peak in March the rate of improvements remains at amongst the highest levels in the past 12 years. Importantly staff availability fell for the first time in 2 years. Rising labour scarcity will drive job churn and following the recession we could see the biggest movement of resources in recent memory. 2010 will continue to be an employers market – however, you may wish to be prepared for a spike in turnover Public Sector: Chancellor George Osborne has already announced a civil service recruitment freeze designed to save an estimated £120m. The £6.2bn reduction in PS spending already announced includes freezes on recruitment and the use of agency staff. These are likely to be the tip of the iceberg as further measures are expected in the emergency budget next week. So we can conclude that employment will be at the centre of the debate (there’s been talk of up to 500,000 jobs being axed...). Incidentally they’ll be looking for further leadership and specific talentRecruitment models: traditional recruitment ‘models’ will be under further examination to demonstrate ROI. We are facing a multi- generational workforce that in itself requires a multi-faceted approach on how you recruit, onboard and retain great talented employees. There’ll need to be a move toproven business models which create potential for strategic talent managementSo in summary – the market is getting better, with more positions available and organisations understanding the need to offer market rates with attractive benefits to make them the employer of choice – however, it’s a very fragile situation!
The Monster Employment Index (MEI) is a monthly analysis of millions of online job opportunities aggregated from a large, representative selection of corporate career sites and job boards across the EU, including monster.co.ukMonster's latest UK employment index records a 7% increase in the wake of the previous month's brief dip, while European activity is now comfortably above the level of a year ago. So, employer demand in the labour market rose in Q1, with overall opportunity levels higher than they were at the beginning of 2009.The UK index for May reached a peak, with every sector bar healthcare & social work in positive territory. Similarly, all UK regions reported increases in activity, with Wales and the South West performing particularly strongly and the North, Midlands, East Anglia and Northern Ireland also registering double-digit rises. So, the job market has shown gradual upward progression in 2010 despite recent turbulence in the European financial markets. Business investment improved in the first quarter of this year, and we can see increased levels of online job availability compared to this time last year. Another positive trend is the growth in HR positions year on year. Additionally, production is showing the highest annual growth in online recruitment, reflecting a relatively improved job market in the manufacturing sectorMay's European index was up, showing an 8% year-on-year increase in online recruitment opportunities. All of the seven countries monitored reported rising activity - most notably France and the UK, followed by the Netherlands, Belgium and Sweden, with Italy and Germany posting more marginal increases. Encouragingly, there was also a marked turnaround in annual growth, with online job opportunities exceeding year-earlier levels for the first time since October 2008. And all occupational groups reported both monthly and annual increases in online demand for workers. So, this is an encouraging sign but I would note that it won't be possible to assess where things were on the road to recovery till after the current seasonal uptrend. But the return of year-on-year growth for the first time in nineteen months could be seen as an indication of growing employer confidence.
The Online Market has grown from 20% (in 2008) to 22% (in 2010) It is anticipated to grow an additional 8% in 2011 Overall market has fallen by 2% year on year (in 2010) & is only expected to grow by 6% in 2011 Overall interpretation therefore is that Online growing this year even though the current overall market has constricted.There is anticipated future growth in both markets with Online growing quicker than Offline (Online growth = 8%, Offline growth 5% = Total Growth 6% )
Optimistic Aspirers They want their next job to excite them, to represent a positive leap forward, and they look at the job search more as an opportunity than as a set-back.“Lost and Nervous”They are the most insecure—about their future, their direction and choices, their ability to present themselves well, and whether they’re applying for jobs they have a chance of getting.“No-Nonsense Career-Builders”They approach the job search as they approach projects: with clear goals, to-do lists, and a desire to get to an appropriate next job as quickly and efficiently as possible.“Easy Riders”They are annoyed by the search process, complain about how much time it takes and how tedious it is, and want the process to require as little effort as possible.Make the point that the easy riders are not necessarily lazy at work… they could be very into it, but the process makes them nuts.
Changing candidate: The DNA of the job seeker has changed in the last couple of years. Along with that came the development of a whole new workforce. Due in part to widespread unemployment, the emergence of social media, and transparency through employer review sites, new candidates have evolved to be more informed, more cautious, and more determined. In addition, we are still facing a multi-generational workforce that requires a multi-faceted approach to recruiting, onboarding, and retentionDiversity: Over the coming years, the workforce is set to become far more diverse and segmented, reflecting trends towards an ageing population, greater ethnic diversity, increases in immigration and more women taking up positions in paid work. Over the next decade c. 30% of the current workforce will retire – coupled with the dip in the birth rate; this will manifest a shortage of ‘middle managers’ in the next few years – there’ll be a ‘global war for talent’. There’ll need to be the ability to reach across local boundaries to access intellectual capital from diverse backgrounds with the right skills to meet business demands
In Aug 08 comScore highlighted that the use of social networking sites exploded with a 25% increase of UVs, compared to an 11% increase of total internet visitors...most organisations currently using SM to ‘screen’ candidates – but this is likely to change in the future – they will grow in importance. However, according to the Management Consultancy – Recruitment Channel Report 2010 – ‘social media sites and newspapers generated applications from barely 1 in 5 of the candidates surveyed – social media sites in total produced < 5% of applications, compared with the one third of all applications generated by internet job boards.Note that people don’t perceive Facebook as a place to look for a job search—it’s not connected to the territory: yet. That might change.
Outsourcing: As companies forego the overhead costs, there’s a broader trend towards outsourcing....as evidenced by the proliferation of current outsource deals emerging – for instance the MOD has long planned to divest back office services to the private sector, saving nearly £3bn over the next decade. Up to £100m a year is expected to be saved by outsourcing the recruitment of soldiers and officers. This is where Monster is engaged with Serco, Logica and AMV in a consortia arrangement.Social media: Social media are now important channels used by candidates in a job seeking process (NORAS 2010) and can reach specialist candidates before they reach job boards, agencies and employer websites. The greatest contribution of SM is building relationships with candidates. Job seekers will now make this part of their search strategy. Find out which are the most successful social features to your business to give employees social networking elements and bring them to life Technology: will continue to play an important role and will continue to do so to contribute to efficiencies. Applicant tracking systems will gain in popularity; particularly where they can handle onboarding and through to outplacement. Other tools such as video will gain in prominence. From a candidate perspective we’ll increasingly have to be accessible, credible and responsive in order to keep pace with today’s high-tech and high in-touch candidates. Having technology at the core will ensure having useable workforce data to influence talent management strategies.&Mobile recruiting: What I’m talking about here is finding and connecting with people through a mobile phone – not necessarily from or through a mobile. Many current studies state the mobile device will be the primary connection tool to the internet for most people in the world by 2020Innovation: The market will continue to transform, and those supplier organisations who lead will be positioned well. For instance, recent trials of our new semantic search technology, 6Sense, achieved 65% time savings when searching CV databases compared with using keyword searches. They also reported that the number of qualified candidates they were able to find increased by 150%. In essence this is a chance for suppliers to showcase how quickly we / they can adapt to service their customers&Value add: suppliers should be demonstrating added value and offering innovative staffing solutionsTalent vision: social and demographic pressures will continue to increase the significance of quality and retaining the very best people. In many cases a different skills set will be needed in the future. Building of ‘talent’ pools or pipeline and maintaining regular contact with strong candidates who may not have been the right fit for a particular role first time round will become more important. Here a talent ‘vision’ will be a priority to help navigate the decade ahead; and cohorts of Gen Y assets will be asking organisations to prove that ‘people are our most important asset’ – is truly true!
Innovative resourcing: creating an innovative resourcing strategy for the coming years built on the basis of the organisation’s own website and supplemented by an innovative job board will be key – your site must be accessible via search enginesSocial media: SM sites will strengthen their proposition in the coming years, and of course current job boards are also innovating in this way. This could give employers competitive advantage, using this new online measureable sourcing channel. For instance Monster has now recognised that SM has become a part of our daily lives and provides a new and innovative way to communicate and share information. We now have a solution to extend your recruiting brand onto facebook and / or TwitterNetwork: networking with other HR professionals from other organisations will open further resourcing opportunities – perhaps even shared service centres and so on.... share your knowledge and experience, form alliances and forge stronger connectionsTalent: value talent that you have NOW..and not leave it until you need to recruit it! A good talent pool will reduce reliance on advertising and, if maintained properly, can organically grow through networking and referrals – so needs to be a focus on building talent pools, candidate management and tracking and attractionDiversity: not really enough just to ensure the door is open, but rather need to have some pull strategies; and culture and reputation count for a lot hereEmployment brand: this is also key to driving talent, to emotionally get engagement with prospective employees. Developing and communicating a consistent employment value proposition to potential employees will become an even more critical part of the recruitment process. In addition, you’ll need to look to extend the employment brand into performance management and learning processes to improve the chances of retaining top performers.Recruiters: Beyond job sites and recruiting fairs, recruiters need to be accessible, credible and responsive in order to keep pace with today’s high-tech and high-touch candidates
Julian LaddMonster Worldwide Research, trends and predictions 16 June 2010
‘an age of austerity’....cut state spending in ways that will ‘affect our economy, our society, indeed our entire way of life’ 2
‘..in the Budget there will be further measures to stimulate private sector employment...’ Chancellor of the Exchequer 8 June 2010 4
5 96% of employers plans to either maintain or increase their workforce over the next year online recruitment activity up 15% since last year Increased pressure on public sector Continued shift from traditional to online
http://hiring.monster.co.uk/hr/hr-best-practices/market-intelligence/labour-statistics-trends/employment-index-may10.aspx 6 +7% The Monster Employment Index UK in May On the up: banking and accounting Northern Ireland Not so good: healthcare & social work Scotland
8 47% go online to look for job vacancies Top search = job specific terms 6.6 million (March) Get visible online!
Looking for a new job is a time of emotional peaks and valleys. The mood is changeable. Optimistic Encouraged Reaffirmed Uncertain Excited Not confident Tired Pessimistic Discouraged Daunted Anxious Angry Source: Monster European Research April 2010
Core consumer groups across Europe “Optimistic Aspirers” “Lost and Nervous” “Easy Riders” “No-Nonsense Career-Builders” Source: Monster European Research April 2010
What does that mean for recruiters? 11 No cookie cut approach! “Optimistic Aspirers” “Lost and Nervous” Suggestions, new ideas, creative search techniques. Inspiration to explore new directions; vision to map the future Hand-holding, advice, guidance, feedback especially around their CV and post application “Easy Riders” “No-Nonsense Career-Builders” Filtering power, detailed information on the jobs available. Rational data allowing them the choices they want “One click” options; simple processes; minimum fuss. Source: Monster European Research April 2010
Do you (would you) ever use social networks as part of your job search? “No! I want to control who knows that I am looking for a job. It’s very private information. On social networks, you don’t have many privacy protections” “I’m not interested in networking with other job seekers. They’re my competitors” “I especially wouldn’t use something like Facebook—which is part of my social life, not my professional life” “I want to know as much as possible about the companies that are posting vacancies. This is how I might use LinkedIn—maybe it turns out I know or can meet some people who work there” The must-haves Useful intelligence Privacy protections Professional tone and feel Source: Monster European Research April 2010