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March 2015 Recruitment Survey Results

10 April 2015

The March Recruitment Survey conducted on behalf of KPMG with local input from Badger Associates indicates that there have been further marked increases in permanent placements and temp billings across the UK and that salaries for permanent hires rise at sharpest rate in six months. Meanwhile candidate availability tightens further.

Demand for talent continues to outstrip supply in terms of the number of candidates seeking work. Ultimately this could lead to company growth slowing if the situation continues unchecked.

The upcoming General Election and the potential uncertainty following it is certainly a factor as candidates batten down the hatches in a secure, if unsatisfactory, job for the time being. The attraction of passive job seekers is therefore even more crucial if companies are to find the right recruits. Working with a recruiter who simply dips into their electronic cupboard for applicants is now very dangerous. Recruiters need to be very proactive in attracting applicants who didn’t even realise they were looking for a new role!

 Bidding for the best talent is now rife and simply offering a package that is industry average is only going to be attractive to candidates who are, by definition, below average. The danger is, of course, that we could create a two-tier pay market, establishing a significant divide between highly paid new starters and current employees receiving subdued pay increases. The long term effect will be to make existing staff less satisfied and, ironically, could see employers struggle to keep hold of talented staff increasingly dissatisfied by their remuneration packages.

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