The document summarizes hiring trends in different regions of England based on a survey of nearly 500 employers. Key findings include: - Expectations for permanent and contract hiring increased in the Midlands/North of England and home counties/South West for Q3 2011 compared to 2010. - Industries like utilities and IT expected the largest increases in permanent hiring, while tourism expected the biggest increase in contract hiring. - Employers are cautiously optimistic about their markets as confidence slowly returns post-recession. Many have made their hiring processes more cost effective and focused on candidate-role matching.

1. Q3 - 2011
the
hudson
update
eMpLoYee tRends –
england’s north, Midlands,
home Counties & south West

2. Contents
intRoduCtion 2
aBout hudson 4
hiRinG tRends in the MidLands & noRth oF enGLand 6
hiRinG tRends in the hoMe Counties & south West oF enGLand 8
hiRinG tRends BY industRY 10
eMpLoYee tRends 16
the hudson ReCoMMendation 19
ContaCt us 21

4. intRoduCtion
Welcome to the hudson the hudson update is
update. in this edition, for the issued quarterly and provides
second time, we include hiring periodic research and analysis
expectations and employee of employer expectations.
trends in england’s home References to historical
Counties and south West data will be made so that
alongside the Midlands and comparisons, trends and
the north. the findings in this predictions may be identified
report relate to expectations across the industry.
for Q3 201 and are based on
1
in-depth research of the region,
conducted by interviewing
clients across a broad spectrum
of industries and job sectors.
2

5. the survey was completed by the industry sectors surveyed ∟ information technology
nearly 500 employers. the across the north, Midlands,
∟ Manufacturing
top three highest respondent home Counties and south
∟ non-profit
groups were Financial West of england were:
Services/Insurance (16.4%), ∟ pharmaceutical
∟ advertising/Marketing/
Manufacturing (9.8%) and ∟ professional services
Media
FMCG (8.5%). there was also
∟ Construction/property/ ∟ public sector
significant representation from
engineering ∟ Retail
IT, Professional Services, the
Public Sector and Retail with ∟ education ∟ telecommunications
an even spread amongst the
∟ energy & Resources ∟ tourism & hospitality
remainder. the vast majority of
∟ Financial services/ ∟ transport
respondents (71.1%) were from
insurance
companies with 250 people ∟ utilities
or more. ∟ FMCG
∟ Wholesale/distribution
∟ healthcare (public sector)
3

6. aBout hudson
hudson is one of the world’s From single placements to
leading providers of permanent outsourced solutions, we
recruitment, contract translate human capital
professionals, outsourced strategies into practical actions
solutions and talent and measurable results.
management services.
Beyond placing candidates into
With over 2,000 employees in contract, interim, and permanent
approximately 20 countries, we roles, we help clients implement
help our clients achieve greater effective long-term recruiting
organisational performance and retention strategies. Our
by assessing, recruiting, underlying goal is to improve
developing and engaging the performance at every level.
best and brightest people for
their businesses.
4

7. hudson uK & ireland operates Sector, Sales and Supply
across 1 offices, all providing
1 Chain & Procurement.
localised specialist services to
our client list is varied,
each market.
ranging from privately
in the english Regions, owned businesses and
we specialise in the sMes through to Ftse 100
following functions; and household Blue Chip
Accounting & Finance, companies.
HR, IT, Legal, Marketing &
Communications, Public
5

8. hiRinG tRends
in the MidLands
& noRth oF
enGLand
net InCReASe the hudson update for this the increase in both permanent
oF 16.2% in region is now into its sixth and contract requirements is
PeRMAnenT quarter. as reported in Q2 indeed further testament to a
hiRinG 201 while expectations have
1, continuing confidence in the
expeCtations FoR somewhat eased this year, the market.
Q3 2011. findings for Q3 2011 still
the spike in Q2 coincided with
represent strong growth
the new financial year for many
when comparing data to
net InCReASe organisations. a subsequent
2010 – particularly in the
oF 11.1% in increase of 16.2% and 11.1%
permanent hiring sector. the
COnTRACT/ for Q3 is extremely positive.
first edition of the hudson
TeMPORARy hiRes
update in 2010 recorded There is also continuous
expeCted.
a net increase of only 11% pressure to hire ‘the best’
(permanent) and a net decrease talent in the market and many
of 6% (contract/temporary) in companies are competing for
hiring expectations. although the same highly skilled people
growth has slowed on last to join their organisation.
quarter, it is evident that the
positive market upturn has by
no means come to a standstill.
6

9. does YouR teaM/Business does YouR teaM/
unit expeCt to InCReASe/ Business unit expeCt to
deCReASe its PeRMAnenT InCReASe/deCReASe its
STAFF LeveLs duRinG the COnTRACTInG/TeMPORARy
JuLY to septeMBeR 2011 wORkFORCe oveR the JuLY
peRiod? to septeMBeR 201 peRiod?
1
10.7% 12.2%
26.9% 23.2%
62.4% 64.6%
increase increase
no change no change
decrease decrease
7

10. hiRinG tRends
in the hoMe
Counties &
south West oF
enGLand
net InCReASe this is the second appearance In contrast however, a net
oF 27.9% in in the hudson update for this increase of only 2.0% in
PeRMAnenT region, so there is a limited contract/temporary hires is
hiRinG amount of historical data for expected, this has somewhat
expeCtations FoR comparative purposes. dropped for Q3 201 from
1
Q3 201 1. Q2 expectations (7.7%). Last
earlier this year we saw an
quarter employers in the
expected net increase of 24.4%
south were focusing heavily
net InCReASe oF in permanent hiring, and we are
on stop-gap hiring solutions in
2.0% in COnTRACT/ now seeing further growth
comparison to their northern
TeMPORARy hiRes in this region with employers
and Midlands counterparts.
expeCted. predicting a net increase of
A shift has occurred as
27.9% in permanent hiring for
they now appear to be
Q3.
more confident in taking
on permanent headcount,
suggesting there is increased
certainty about the employment
market.
8

11. does YouR teaM/Business does YouR teaM/Business
unit expeCt to InCReASe/ unit expeCt to inCReASe/
deCReASe its PeRMAnenT deCReASe its COnTRACTInG/
STAFF LeveLs duRinG the TeMPORARy wORkFORCe
JuLY to septeMBeR 2011 oveR the JuLY to
peRiod? septeMBeR 201 peRiod?
1
8.4%
18.4% 20.4%
36.2%
55.4%
61.2%
increase increase
no change no change
decrease decrease
9

12. hiRinG tRends
BY industRY
industRies it was unsurprising to find quarter. Robust industries such
expeCtinG a that there was diverse hiring as information technology
net InCReASe in trends across industries – (43.8%) and professional
hiRinG. particularly when contrasting services (40.7%) also
those organisations in the showed strong signs of
private and public sectors. expected permanent hiring
trends.
in the permanent market,
all private sector industries on the temp/interim side,
demonstrated that at the very tourism/hospitality showed
least they expected some the strongest signs of
growth. Yet almost the opposite growth, though not to the same
could be said of public sector levels as the lead permanent
organisations. hiring trend – with 35.3% of
employers in this area indicating
In the private sector, utilities
they will expand their temp/
by far demonstrated the
interim base over the next three
strongest level of expected
months. these were followed
hiring for Q3, with 66.7% of
by FMCG (22.5%) and
employers surveyed expecting
manufacturing (17.1%).
to grow their permanent
headcount over the coming
10

13. industRies Construction/property/ absolutely no change in
expeCtinG nO neT engineering was the only the number of temporary/
CHAnGe in hiRinG. collective industry expecting interim staff their organisations
literally no net change in engaged. Transport
permanent headcount for organisations also expected
the next quarter. on the no net change in temporary/
temporary/interim front, it was interim numbers, suggesting
interesting to see that 100% of that these industries felt they
advertising/media/marketing had reached some level of
employers envisaged stabilisation.
industRies As non-private organisations Information technology
expeCtinG a net now endure the fall out from was the only private
deCReASe in the recession, those industries sector industry expecting
hiRinG. with the greatest expected a decrease in temporary
net decrease in hiring for Q3 hiring (25%) – and this can
predominantly fell within the most likely be attributed to
government and not-for-profit the upswing in their expected
arena. additions to permanent
headcount during Q3, thus
Whereby nearly all of the
alleviating their need for
surveyed industries said they
interims. Public sector health
were either growing or keeping
care (23.1%) and education
their permanent headcount, the
(30%) were also expecting
only two that did not, were not-
significant reductions in
for-profit and public sector
temporary/interim numbers for
organisations, expecting a
their organisations.
net decrease of 15.4% and
3% respectively.
11

14. 12
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
advertising/Media/Marketing advertising/Media/Marketing
Construction/property/engineering Construction/property/engineering
education education
Financial services/insurance Financial services/insurance
FMCG FMCG
heathcare public sector heathcare public sector
information technology information technology
Manufacturing Manufacturing
peRManent hiRinG expeCtations BY industRY
non-profit non-profit
pharmaceutical pharmaceutical
ContRaCt/teMpoRaRY hiRinG expeCtations BY industRY
professional services professional services
public sector public sector
Retail Retail
telecommunications telecommunications
tourism/hospitality tourism/hospitality
transport transport
utilities utilities
Wholesale/distribution Wholesale/distribution

15. 13

16. eMpLoYee
tRends
in post-ReCession employers are showing a as many as 16.3% of employers
MaRKets, reasonably strong degree were ‘neither optimistic
COnFIdenCe of confidence in the post- nor pessimistic’ and 7.7%
IS SLOwLy recession market, - 22.5% would describe their level of
ReTuRnInG as would go as far as to say their confidence about their market
the MaJoRitY oF outlook is ‘upbeat and and as ‘pessimistic’. it may be that
eMpLoYeRs in the opportunitistic’ and 51.8% are for some individuals the market
enGLish ReGions ‘cautiously optimistic’. is seen to be moving very slowly
aRe FeeLinG however, whilst nearly three
and as such the thought of a
‘CAuTIOuSLy quarters of respondees fall
double dip recession just can’t
OPTIMISTIC’ into these ‘glass is half full’
be shaken.
(51.8%) aBout categories, not all employers
theiR RespeCtive are completely confident that
MaRKet. their markets are back on track.
14

17. WhiCh oF the FoLLoWinG
beST deSCRIbeS yOuR
CuRRenT COnFIdenCe
LeveL in ReLation to YouR
RespeCtive MaRKet:
1.8%
7.7%
22.4%
16.3%
51.8%
upbeat and opportunistic
Cautiously optimistic
neither optimistic nor
pessimistic
pessimistic
other (please specify)
15

18. neARLy THRee (respondents could select more process. Over one quarter of
QuARTeRS OF than one option). employers (27.3%) had made
eMPLOyeRS HAve nearly a quarter of employers
no changes. perhaps this can
MAde CHAnGeS (24.7%) said they had made
be attributed to companies
to theiR hiRinG it more formalised, and as
believing they already have
pRoCesses post- much as 23.8% confided
robust and cost effective
ReCession. that they had become
recruitment processes, or
prioritising their process and
more focused on matching
cost improvements in other
the candidate to the role,
parts of their business.
When asked to describe any demonstrating a shift of focus
changes made to their hiring away from ‘filling seats’ which
processes post recession, was often the fastest but not
38.1% of employers necessarily the best recruitment
confidently stated that approach taken by many
they had made it more organisations.
cost effective, and 28.6%
it would appear however,
said they had improved it/
that not all organisations
made it more streamlined
have changed their hiring
hoW WouLd You deSCRIbe Any CHAnGeS TO yOuR
HIRInG PROCeSS post-ReCession (You MaY seLeCt
MoRe than one):
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
More formalised
More streamlined/improved
More cost effective
More focused on matching
candidates to role
it’s not changed
other
16

19. as ManY as 48.8% a bad hire could have on do You thinK You have
Made a ‘Bad hiRe’ at anY
OF eMPLOyeRS their organisation. this staGe in YouR CaReeR?
beLIeve A bAd was followed by a loss of
7.4%
HIRe wOuLd productivity (72%) and impact
HAve A dIReCT on morale (70.4%). over half
19.2%
IMPACT On THe the respondents (51%) felt
bOTTOM LIne. Yet, that a bad hire could impact
neaRLY thRee customer service, 48.8% saw
73.4%
QuaRteRs (73.4%) potential for direct impact on
oF Respondees the bottom line and 44.8%
Yes
adMitted that felt that cost would come
no
theY have Made a from lost opportunities
unsure
‘Bad hiRe’ at soMe (opportunity cost).
staGe in theiR With employers so aware of
CaReeR. the impact a bad hire can have stage in their career. only
on their organisation, it was 19.2% of employers were
extremely interesting to note confident that they had not
A negative impact on that nearly three quarters – made a bad hire, and 7.4%
teamwork was the most 73.4% - of respondees said were unsure.
commonly stated effect that they thought they had
When looking at the percentage
(78.4%) employers thought made a bad hire at some
of hires individual employers
had made throughout their
What eFFeCT dO yOu beLIeve A bAd HIRe COuLd career, only 10.7% felt that
HAve On yOuR ORGAnISATIOn? (You Can seLeCt
MoRe than one) all their hires had met or
90% exceeded their expectations.
80% the majority (54.5%) fell into
70%
the category of having 10-20%
60%
50% of their hires not meeting initial
40% expectations, suggesting that
30%
over half of employers are
20%
10% potentially unhappy with up
0% to one in five of their hires.
negative impact on
team work
Loss of productivity
impact on morale
negative opportunity
cost
negative impact on
customer service
impact on the bottom
line
other
17

20. neaRLY thRee When asked what differentiates felt that previous workplaces
QuaRteRs (72.5%) a high performing employee would impact an employee’s
OF eMPLOyeRS from an average employee, superiority. however, only
beLIeve THAT A 72.5% of respondees stated 12.8% thought level or type
HIGHeR QuALITy that a higher quality of work of education would impact
OF wORk IS wHAT was a key attribute. an employee’s performance.
dIFFeRenTIATeS Higher productivity was also
While this is often a key
HIGH PeRFORMInG seen by 60.8% of employers
criteria set by employers for
eMPLOyeeS in the english Regions to be a
candidates when applying for
FRoM aveRaGe differentiator, followed by the
a role, overall employers do
eMpLoYees. type of experience (39.6%)
not see a strong correlation
between education and
and ability to boost team
actual performance. this may
morale at 29.3%. interestingly,
be attributed to education now
not even a fifth (19.6%) of
being perceived as a hygiene
employers thought that
factor - employers expect
years of experience was a
recruits to have certain types
differentiator, and only 17.2%
and levels of education as
standard.
wHAT dO yOu beLIeve dIFFeRenTIATeS A HIGH
PeRFORMInG eMPLOyee FRoM an aveRaGe eMpLoYee (You
Can seLeCt MoRe than one):
80%
70%
60%
50%
40%
30%
20%
10%
0%
higher productivity
higher quality of work
Level/type of education
previous workplace
Years of experience
type of experience
ability to boost team morale
other
18

21. the hudson
ReCoMMendation
RoBust just a good hire, but the best advantage, and there are a
ReCRuitMent: the hire, is vital in this increasingly number of techniques and
onLY SuRe-FIRe to competitive environment. as we factors that organisations
avoid MISS-HIRe are not yet ‘completely out of should consider and incorporate
the woods’ and with employers into their recruitment processes.
still cautiously optimistic about This ensures that the
their markets, focus will be future of an organisation is
Research from harvard
on the longer term value maximised through its HR
Business school has shown
that employees can bring to strategy.
that the cost of a bad hire
organisations.
is three to five times an
annual salary package. Yet, as such, employers need stRateGiC WoRKFoRCe
with nearly three quarters to create a multi-faceted pLanninG
of employers in the english recruitment process that is
strategic workforce planning
Regions saying that they have strategically devised and
is the process that allows an
made a bad hire in their career, aligned with their business
organisation to anticipate
local employers are enduring or corporate plans. An
human resource needs
excessive and avoidable costs. organisation can not achieve
for today and the future, to
its long-term objectives,
ultimately every staff support and enhance strategic
without the right human
member will contribute plans. it creates the right
resources.
to – or deduct from – an framework to develop business
organisation’s performance, people are key to gaining progression and growth, and
and making every hire not and maintaining competitive is comprised of a process
19

22. that assists in identifying and of work. organisations must evp, they must then ensure that
assessing, acquiring, developing develop a clear employee their recruitment procedures
and retaining employees that value proposition (evp) are rigorous and fit for the
have the highest potential and which supports their strategic purpose of identifying the
can bring the most value to an workforce planning. best performers to bring into
organisation. their teams.
To build a strong evP,
Whilst the process itself will vary essentially employers should though our research indicates
between organisations, typically consider what it is that that there has been some
workforce planning assists in makes their organisation movement towards placing
the identification of the best unique and highly sought greater focus on better
staff, the necessary attributes as an employer brand of matching candidates to roles,
and key competencies required choice. it acts as an attraction there is still more that can be
to support future organisational and retention tool, and done on this front.
direction, and analysis of serves the purpose of clearly
A robust hiring process
current staff levels to identify demonstrating the benefits of
includes sophisticated
gaps or surpluses in workforce. working for one organisation
measures to identify those
Regular evaluations to ensure over another to candidates and
who have the potential to be
the workforce plan is maximised employees.
high performers, and help
and remains aligned to key
this ensures the best attraction employers get the right person
corporate objectives are also
and retention of the right into the role. Without this, in
critical.
employees – competitive this competitive environment,
the strategic workforce plan advantage can not be organisations will lose the
can help build information obtained and maintained if chance of competitive edge, as
for both short and long term the talent required to help the consequences of getting
decision making, therefore an organisation achieve its hires wrong are much further
providing the flexibility to strategic goals is lost to the reaching than the visible direct
adapt quickly and effectively competition. costs.
to changing market
of course, there is no value It is a combination of
conditions.
in creating the proposition, strategic workforce planning,
eMpLoYee vaLue
if it’s not communicated and a strong evP and rigorous
pRoposition executed effectively. recruitment processes that
it is near impossible to attract will minimise and eliminate
and retain the best people RiGoRous ReCRuitMent
the chance of miss-hires
pRoCeduRes
needed to deliver strategic and maximise an organisation’s
once employers have laid
workforce plans when an ability to reach its corporate
the foundations of workforce
organisation is not considered objectives and gain competitive
planning and have built a strong
to be a highly desirable place advantage.
20

23. ContaCt us
We hope you found this report JAMIe wILLS FRAnk wAdSwORTH
Birmingham Manchester
interesting and informative.
t: 0121 600 7739 t: 0161 819 7541
to discuss this the hudson e: jamie.wills@hudson.com e: frank.wadsworth@hudson.com
update in more detail, or for a
confidential discussion about STeven undeRwOOd GARy FAy
Bristol Milton Keynes
any of your recruitment needs,
t: 01173 330 000 t: 01908 547 817
please get in touch with your e: steven.underwood@hudson.com e: gary.fay@hudson.com
local hudson contact:
Lee bHAndAL JeMMA RAwLInS
Leeds Reading
t: 01 297 9545
13 t: 01189 522 466
e: lee.bhandal@hudson.com e: jemma.rawlins@hudson.com
21