1. QUARTER 2 - 2011
THE
HUDSON
UPDATE
EMPLOYEE TRENDS –
England’s North, Midlands,
Home Counties & South West

3. INTRODUCTION
Welcome to The Hudson top three highest respondent ∟ Advertising/Marketing/
Update. In this edition, for the groups were the Professional Media
first time, we include hiring Services (16.9%), Financial
∟ Construction/Property/
expectations and employee Services/Insurance (12.2%)
Engineering
trends in England’s Home and Retail (8.7%) sectors.
∟ Education
Counties and South West There was also significant
alongside the Midlands, North representation from the IT, ∟ Financial Services/
West and North East. The Manufacturing and Public Insurance
findings in this report relate to sectors with an even spread ∟ FMCG
expectations for Q2 201 and
1 amongst the remainder. The
∟ Healthcare (Public Sector)
are based on in-depth research vast majority of respondents
of the region, conducted by (70.7%) were from companies ∟ Information Technology
interviewing clients across a of 200 people or more. ∟ Manufacturing
broad spectrum of industries
The industry sectors surveyed ∟ Non-Profit
and job sectors.
across the North, Midlands,
∟ Pharmaceutical
The Hudson Update is Home Counties and South
issued quarterly and provides West of England were: ∟ Professional Services
periodical research and ∟ Public Sector
interpretation of employer
∟ Resources
trends and expectations.
References to historical ∟ Retail
data will be made so that ∟ Telecommunications
comparisons, trends and
∟ Tourism & Hospitality
predictions may be identified
across the industry. ∟ Transport
The survey was completed by ∟ Utilities
nearly 1,000 employers. The ∟ Wholesale/Distribution

5. ABOUT HUDSON
Hudson is one of the From single placements to Hudson UK & Ireland
world’s leading providers outsourced solutions, we operates across 1 offices
1
of permanent recruitment, translate human capital in the region, all providing
contract professionals, strategies into practical actions localised specialist services
outsourced solutions and and measurable results. to each market. In the English
talent management services. Beyond placing candidates Regions, we specialise in the
With over 2,000 employees in into contract, interim, and following functions; Accounting
approximately 20 countries, we permanent roles, we help & Finance, HR, IT, Legal,
help our clients achieve greater clients implement effective Marketing & Communications,
organisational performance long-term recruiting and Public Sector, Sales and Supply
by assessing, recruiting, retention strategies. Our Chain & Procurement. Our
developing and engaging the underlying goal is to improve client list is varied, ranging from
best and brightest people for performance at every level. privately owned businesses
their businesses. and SMEs through to FTSE
100 and household Blue Chip
companies.

6. HIRING TRENDS IN THE
MIDLANDS & NORTH OF
ENGLAND
NET INCREASE OF 26.6% IN PERMANENT DOES YOUR TEAM/BUSINESS
HIRING EXPECTATIONS FOR Q2 2011. UNIT EXPECT TO INCREASE/
DECREASE ITS PERMANENT
NET INCREASE OF 0.7% IN CONTRACT/ STAFF LEVELS IN YOUR
TEMPORARY HIRES EXPECTED. COUNTY DURING THE APRIL
TO JUNE 201 PERIOD?
1
Since the inception of The The reasons we are seeing 1 7%
1.
Hudson Update in early 2010, these results could be due to
we recorded four consecutive a number of factors. Earlier in 38.3%
quarters where hiring the year, there were reports of
expectations have grown. Now a “double-dip” recession in the
50%
into its fifth quarter, it is the first UK and this may have sparked
time we are seeing a tempering caution amongst employers
of hiring expectations, as in the Midlands and North. In
growth in recruitment is now addition, it is clear from our Increase
declining. Permanent hiring previous reports that companies No change
expectations have declined only have been hiring permanent Decrease
slightly compared to Q1 2011 staff meaning many may have
DOES YOUR TEAM/BUSINESS
(net increase of 27%) however fulfilled their requirements. UNIT EXPECT TO INCREASE/
contract/temporary hiring Further to this, many employers DECREASE ITS CONTRACTING/
TEMPORARY WORKFORCE
expectations fell more sharply may be focusing on recruiting OVER THE APRIL TO JUNE 2011
(net increase of 6.7%). permanent employees resulting PERIOD?
in the decline in contract/
While expectations have
temporary hiring expectations
somewhat eased, these 15.8% 16.5%
we have witnessed.
findings still represent strong
growth when comparing
data to 2010 – particularly
in the permanent hiring
sector. The first edition 67.7%
in 2010 recorded a net
increase of 1 (permanent)
1%
Increase
and a net decrease of 6% No change
(contract/temporary) in hiring Decrease
expectations.

7. HIRING TRENDS IN THE
HOME COUNTIES & SOUTH
WEST OF ENGLAND
NET INCREASE OF 24.4% IN PERMANENT DOES YOUR TEAM/BUSINESS
HIRING EXPECTATIONS FOR Q2 2011. UNIT EXPECT TO INCREASE/
DECREASE ITS PERMANENT
NET INCREASE OF 7.7% IN CONTRACT/ STAFF LEVELS IN YOUR
TEMPORARY HIRES EXPECTED. COUNTY DURING THE APRIL
TO JUNE 201 PERIOD?
1
13.9%
38.3%
As this is the region’s first regions, this may have an effect
appearance in the Hudson as these organisations are still
Update, there is no historical concerned by headcount – a 47.8%
data to make comparisons with. solution for which is often an
There are some indications increase in temporary staff. In
of slight differences in hiring addition, as may be the case Increase
expectations between Northern with the North, media reports No change
and Southern respondents of a “double-dip” recession may Decrease
however. Expectations for have encouraged managers
permanent hiring are slightly to focus more heavily on lower DOES YOUR TEAM/BUSINESS
UNIT EXPECT TO INCREASE/
lower in the South (by around risk contract staff. Either way, DECREASE ITS CONTRACTING/
2%) but significantly higher (by it is encouraging to see that TEMPORARY WORKFORCE
OVER THE APRIL TO JUNE 2011
7%) for temporary/contract more Southern businesses are PERIOD?
recruitment. aiming to recruit in one way or
another.
It can be concluded that 18.2% 26%
Southern managers are more
focused on short term hiring for
the coming months which could
be due to a number of factors.
With the public sector being
55.8%
more prevalent in the surveyed
Increase
No change
Decrease

8. EMPLOYEE TRENDS IN THE
NORTH, MIDLANDS, HOME
COUNTIES & SOUTH WEST
ENGLAND’S EMPLOYERS PAY THEIR
STAFF WELL. OVER 70% OF NORTHERN
AND MIDLANDS RESPONDENTS SAID
THEY FEEL THEIR COMPANY OFFERS A
COMPETITIVE REMUNERATION PACKAGE.
OVER 73% OF SOUTHERN RESPONDENTS
ANSWERED THE SAME.
The majority of employers in the In all regions, the salary IN YOUR OPINION, DOES
Midlands, North and South of review process most used by YOUR COMPANY OFFER A
COMPETITIVE REMUNERATION
England provide a competitive managers was overwhelmingly
PACKAGE?
remuneration package to their in favour of the annual
staff according to over 70% performance review. Over
11%
of our respondents. Just 17% 60% of respondents chose
said they did not, meaning this method which certainly
17%
employees in these regions are has many benefits including a
generally being paid well. system to monitor performance
and an ability to set motivating 72%
Considering that the country
targets with tangible rewards.
is emerging from a deep
and costly recession, this
is encouraging news. Many Yes
organisations had to cut costs No
and it was salaries that became Unsure
a prime target. It is possible
then that many businesses
have now reinstated these cuts
and salaries are beginning to
rise again.

9. OVER A QUARTER OF RESPONDENTS -
27% IN THE NORTH & MIDLANDS AND
26% IN THE SOUTH - DON’T OFFER
BONUSES TO STAFF AT ALL WHILE
AROUND 23% (NORTH & MIDLANDS) AND
18% (SOUTH) ONLY OFFER BONUSES TO
CERTAIN STAFF MEMBERS.
With around 27% of In addition, while it is DOES YOUR COMPANY OFFER
respondents failing to offer reasonable and generally BONUSES TO STAFF?
bonuses and up to 23% only accepted that fee earners gain
offering them to certain staff, bonuses for their work, those
21%
mainly fee earners, it appears companies who pay them only
that support staff in these to these employees should
regions only have a 50/50 consider the impact of this on
53.4%
chance of receiving a bonus. non-fee earners. Businesses 25.6%
need to ensure they engage
From an employer’s perspective,
these staff members in
bonuses can be a distinctive
other ways such as separate
advantage when attracting
benefits or investment in their Yes
top quality candidates, leaving
development. No
those who don’t offer bonuses
Only to certain employees
with a significant challenge.
While it can be argued that this
particular benefit may not be a
key motivator when a person is
in their role, it certainly impacts
the decision making process
when candidates are deciding
between job offers.

10. SOME BENEFITS (LIFE ASSURANCE, Some benefits split opinion
CHILDCARE AND TRAINING) SPLIT amongst our respondents.
Life assurance (53%) and
OPINION WHEN ASKED IF THEY CAN BE
subsidised training (52%)
EXPECTED AS PART OF THE MINIMUM
were only slightly considered
PACKAGE OR IF THEY ARE A PERK.
as an expectation. While life
ANNUAL SALARY REVIEWS, PENSION, assurance may be seen as a
MATERNITY LEAVE AND PAID HOLIDAYS tactic that may or may not be
ARE SEEN BY THE VAST MAJORITY AS A used to attract candidates, it is
“MUST-HAVE” BENEFIT. somewhat surprising that more
businesses don’t place more
Many of the “traditional” expectations by offering this value on subsidised training –
benefits that companies offer as a benefit. Furthermore, especially as this can have a
are still seen as a staple of 62% of respondents felt that direct, beneficial impact on the
the remuneration package health/medical insurance is business. Further to this, child
by the vast majority of our a perk leaving a significant care facilities/vouchers were
respondents. Annual salary 38% seeing it as a minimum seen by a slight majority (57%)
reviews (87%) and pension expectation. It is likely that as a perk. This is likely to be
contributions (83%) are two this benefit will increase in due to the cost of providing
benefits receiving a lot of importance as more and more such a benefit, however it may
support from businesses. Of employers offer it. Candidates also raise the question in an
those benefits with statutory will begin to expect this in ongoing debate, of whether
requirements attached to them, their package and employers women receive enough support
it would seem that employers will have to offer it to remain in the modern workplace.
will consider enhancing these competitive.
benefits for staff members.
Ninety one per cent of our PLEASE INDICATE WHETHER YOU FEEL THE FOLLOWING SHOULD
BE EXPECTED AS A MINIMUM BY YOUR EMPLOYEES IN A
respondents held this view with REMUNERATION PACKAGE OR IF YOU CONSIDER IT TO BE A PERK.
regards to maternity/paternity
900
leave while 76% feel that 800
Minimum expectation
additional paid holidays should 700
600
be added over statutory.
Number of respondents
500
It is interesting to note that 400
300
67% of our respondents
Perk
200
indicated that they see 100
bonuses as a perk. When 0
Annual salary review
Pension contributions
Life assurance
Health/Medical insurance
Child care vouchers/facilities
Subsidised training
Bonus
Maternity/Paternity leave
Paid holidays (over statutory)
you look back at our earlier
analysis on this subject, this
may be an indication that a
large number of employers
feel that they are exceeding

11. COMPETITOR ANALYSIS IS THE MOST
POPULAR METHOD OF BENCHMARKING
SALARIES - 43% IN THE MIDLANDS &
NORTH AND 41% IN THE HOME COUNTIES
& SOUTH WEST.
With most employers across the (32%), both of which provide industry body guidelines
regions surveyed saying that a valuable service in this area (33%) however this is used
they benchmark their salaries across multiple industries and significantly more than agency
using competitor analysis, job types. salary surveys (23%). Further to
it is interesting to note that this, advertised salaries are also
A large number of managers in
this information is available a popular benchmarking tool
the Home Counties and South
within industry circles. It is a with 24% selecting this option.
West also used professional
valuable source of information
as it enables businesses to
remain competitive when in the
market for highly sought after
HOW ARE SALARIES BENCHMARKED BY YOU IN YOUR
candidates. ORGANISATION (CHOOSE AS MANY AS IS APPROPRIATE)?
45%
There were some slight
40%
differences between Northern 35%
and Southern businesses 30%
when looking at other methods 25%
20%
in benchmarking. In the
15%
Midlands and North of England, 10%
managers also used agency 5%
salary surveys (34%) and 0%
CIPD
Professional industry
body guidelines
Recruitment agency
salary guides/surveys
Recruitment consultant
advice
Competitor analysis
Candidate disclosure
of salaries
Advertised salaries
We don’t benchmark
Other
professional industry guidelines

13. EMPLOYMENT
EXPECTATIONS BY
INDUSTRY
INDUSTRIES EXPECTING
AN INCREASE IN HIRING
Although the market across expected to increase their When looking at the temp/
the English regions as a whole permanent headcount in Q2 interim market by industry, the
is showing signs that growth 201 A significant proportion
1. biggest expected increase in
in recruitment is generally (57.4%) of professional services temporary staff hires mimicked
declining, there is in fact a organisations and 60% for permanent hiring trends,
wide variation in sentiment resources organisations as once again it was the
across industry sectors. Some also foresaw growth in their resources industry forecasting
industries actually expected organisation, demonstrating the greatest increase (40%
to increase their permanent a return of confidence to of these organisations) in
headcount significantly, whilst these markets. This was temporary staff numbers.
others were much more likely to compared with just 15% of Similarly, pharmaceutical
keep their headcount stagnant, pharmaceutical companies organisations were again the
or even reduce it. A similar planning to make permanent least likely to recruit, with
representation was seen in hires. Unsurprisingly, public just 10% of pharmaceutical
the expectations of temp and sector, health care and not companies saying that they
interim trends. for profit organisations also would be increasing their
loitered low in this respect, all temporary staff numbers in the
More than half (54.4%) of the
of which hovered around the following period.
financial services/insurance
16-18% mark.
organisations surveyed

14. INDUSTRIES EXPECTING
NO CHANGE IN HIRING
The majority (50%+) health care, manufacturing, non to permanent staff levels in
of organisations within – profit, pharmaceutical, retail, Q2 201 This was similarly
1.
advertising/marketing/ tourism & hospitality, transport reflected in temporary staff
media, construction/property/ and utilities all predicted that expectations.
engineering, education, FMCG, there would be no change
INDUSTRIES EXPECTING A
DECREASE IN HIRING
When looking at the industries resourcing organisations, once services fared best with only
expecting to decrease their again holding strong, expected 7.1% of organisations expecting
permanent headcount, it absolutely no decreases in to reduce their temporary
was naturally public sector staff. employee numbers next quarter.
organisations that fared badly, In contrast, 40% of public
When looking at reducing
with up to 35% of respondents sector organisations envisaged
the number of temporary
from the industry saying they a reduction in their temporary
employees, professional
expected cuts. In contrast, workforce.

15. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Advertising/Marketing/ Advertising/Marketing/
Increase
Increase
Decrease
Decrease
Media Media
No change
No change
Construction/Property/ Construction/Property/
Engineering Engineering
Education Education
Financial Services/ Financial Services/
Insurance Insurance
FMCG FMCG
Healthcare (Public Healthcare (Public
Sector) Sector)
Information Technology Information Technology
1
Manufacturing Manufacturing
Non-Profit Non-Profit
1
WORKFORCE OVER THE APRIL TO JUNE 201 PERIOD?
Pharmaceutical Pharmaceutical
Professional Services Professional Services
IN YOUR COUNTY DURING THE APRIL TO JUNE 201 PERIOD?
Public Sector Public Sector
Resources Resources
Retail Retail
Telecommunications Telecommunications
Tourism & Hospitality Tourism & Hospitality
Transport Transport
Utilities Utilities
Wholesale/Distribution Wholesale/Distribution
DOES YOUR TEAM/BUSINESS UNIT EXPECT TO INCREASE/DECREASE ITS PERMANENT STAFF LEVELS
DOES YOUR TEAM/BUSINESS UNIT EXPECT TO INCREASE/DECREASE ITS CONTRACTING/TEMPORARY

16. REMUNERATION BY INDUSTRY
Our survey indicated that work for – with huge proportion sector health care organisation
the majority of organisations (81.7%) of manufacturing felt their employee package
believe they offer a competitive employers saying that was competitive, which may
remuneration package their organisation offers a be reflective of the pessimism
(averaged out across all competitive remuneration occurring in the current
industries to nearly 70%). package. Pharmaceutical was employment market in public
not far behind, with 80% of sector.
But what of specific industries?
organisations saying the same.
According to employers’ beliefs,
In contrast, only 50% of public
manufacturing is the industry to
IN YOUR OPINION, DOES YOUR COMPANY OFFER A COMPETITIVE
REMUNERATION PACKAGE?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Advertising/Marketing/
Media
Construction/Property/
Engineering
Education
Financial Services/
Insurance
FMCG
Healthcare
(Public Sector)
IT
Manufacturing
Non-profit
Pharmaceutical
Professional Services
Public Sector
Resources
Retail
Telecommunications
Tourism & Hospitality
Transport
Utilities
Wholesale/Distribution

17. THE HUDSON
RECOMMENDATION:
ENSURE YOUR FOCUS ON STAFF
MOTIVATION REACHES BEYOND JUST
THEIR PAY PACKET
Many companies make the the most out of their workforce. extra responsibility, or more
mistake of using salary as Some of the most powerful important responsibility, to
a motivator, or at least their forms of motivation don’t come staff members. If they see
primary motivator. Research from monetary rewards, but they have been trusted
in the UK and the US has from focusing on the key points to carry out these tasks,
shown that an employee’s that affect an individual’s drive they will be motivated to
salary, in isolation, does not to succeed. Some examples: ensure that your trust is
in itself motivate staff to not misplaced.
∟ RECOGNITION – People
perform better. The only time
are always buoyed when ∟ EMPOWERMENT –
that a remuneration package
their achievements Nothing says “I believe in
becomes an issue is if the
are recognised. This you” like empowering your
employee feels that they are
can be applied to staff employees. It can yield
not being paid enough. In
by ensuring, when excellent results if you
this case the employee may
appropriate, that their allow your staff to make
become de-motivated and
work is praised and important decisions then
this is probably down to their
acknowledged by senior to see these decisions
feeling a sense of self-worth
figures in the organisation. carried out. In addition,
and value to the company.
Make sure to share a make your people feel
So it is important to get the
colleague’s success heard. Actively encourage
salary package right, so that
with team mates and your team to come up with
your employees know they
reward staff with career ideas and make sure you
are valued by the organisation,
development opportunities. commit to seeing the best
however it should not be used
ideas implemented. This
as a reward. ∟ TRUST – Even in everyday
can be highly beneficial
life, people are happy
The true motivation of staff for both employee and
when they gain another’s
comes from cognitive sources, employer.
trust. The same can be
and companies can implement
said in the workplace. This
a variety of techniques to get
can be done by assigning

18. IT’S ALL HAPPENING UPSTAIRS…
Much of what motivates a For employees, they will have As with any contract, written
person at work stems from certain expectations of their or otherwise, there is two or
the PSYCHOLOGICAL employers in relation to job more parties involved, and thus
CONTRACT. There are many content, career development, in order for the relationship to
factors beyond the written social atmosphere, training, be successful, employers will
contract that influence the financial rewards, work-life have their own expectations
level of engagement an balance and security. Where of employees, but this will be
employee demonstrates. Whilst an employer does not meet in terms of their performance,
remuneration packages may expectations, an employee collegiality, flexibility,
play a role in de-motivation if may become disillusioned and loyalty, professionalism and
insufficient, it is most often disenchanted with their role – employability. Any mismatch
factors of the psychological leading to wavering levels of between delivery and
contract which determine motivation and productivity. expectations will damage the
employee levels of motivation relationship.
and productivity. Employees
It is for these reasons that
come to expect certain things
employer and employee
that are not explicitly expressed
must ensure open and clear
in writing from their employers,
communication about all
and vice versa, and without a
of these factors, so that
clear view on these things a
expectations are addressed
relationship can go sour and
and understood from the onset,
the best is not derived from
to ensure both parties are
both parties.
satisfied and optimum success
can be achieved.

19. YOUR POINTS
OF CONTACT
Thank you for taking the time JAN COLLIGAN FRANK WADSWORTH
to read this update. To discuss Birmingham Manchester
further, please get in touch with t: 0121 634 5176 t: 0161 819 7541
your local Hudson contact: e: jan.colligan@hudson.com e: frank.wadsworth@hudson.com
STEVEN UNDERWOOD GARY FAY
Bristol Milton Keynes
t: 01173 330 000 t: 01908 547 817
e: steven.underwood@hudson.com e: gary.fay@hudson.com
LEE BHANDAL JEMMA RAWLINS
Leeds Reading
t: 01 297 9545
13 t: 01189 522 466
e: lee.bhandal@hudson.com e: jemma.rawlins