May 13, 2019
Employers are up skilling existing staff as vacancies get harder to fill
Employers are having to be more flexible to fill vacancies as buoyant demand for staff is creating recruitment challenges. Two in five (41 percent) employers say it has become more difficult to fill vacancies in the past year, while three in five (61 percent) employers said that at least some of their vacancies were proving hard to fill. However, according to the latest Labour Market Outlook from the CIPD and the Adecco Group despite the tightening labour market, this confidence has yet to translate into significant salary increases for all but new starters and those with key skills.
As recruitment and retention challenges grow, employers are changing their recruitment practices and drawing on a wider talent pool to fill vacancies, while putting more focus on training up existing staff.
Gerwyn Davies, senior labour market adviser for the CIPD said: “The majority of UK workers are long overdue a meaningful pay rise. However, many workers will remain disappointed with their pay packets until there are significant and sustained improvements to productivity. Organisations need to give much greater consideration to the obstacles that are preventing their people from performing better at work.
“A greater focus on training, development and better people management is needed to lift the UK out of its current productivity crisis. One upside is that many employers are already investing in developing their existing workforce to plug skills gaps. Strengthening workplace training and recruiting in a more inclusive, flexible way will ultimately deliver higher performing and fairer workplaces.”
[perfectpullquote align=”right” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]“A greater focus on training, development and better people management is needed to lift the UK out of its current productivity crisis.” [/perfectpullquote]
Recruitment outlook – jobs growth set to continue
Britain’s jobs boom is set to continue in the short term. The report’s net employment balance – a measure of the difference between the proportion of employers who expect to increase staff levels and those who expect to decrease staff levels – has increased from +20 to +22. Employment growth will continue to be driven by the private sector which has increased from +22 to +25 in the last quarter. The report shows that confidence is highest in business services (+39), construction (+36), healthcare (+31) and ICT (31 percent).
Skills shortages – employers are having to be more flexible to find candidates
Skills shortages are particularly being seen in professional occupations (e.g. scientists, engineers) where 50 percent of employers report that applicants don’t have the required level of skills needed. In response to skills challenges employers are having to rethink their recruitment practices and draw from a wider talent pool. The Labour Market Outlook found that:
- Two in five employers (43 percent) are upskilling existing staff to offset hard to fill vacancies
- 23 percent are hiring more apprentices
- 19 percent are recruiting from outside the UK
- 1 in 7 (16 percent) are lowering their recruitment standards
In line with recent ONS data*, the report also found that employers were making greater efforts to hire those aged over 55 (8 percent) and those from disadvantaged groups (6 percent).
Despite rising recruitment and retention pressures, median basic pay expectations in the 12 months to March 2020 remain at 2 percent. However, pay expectations have fallen back in the private sector from 2.5 percent to 2 percent and have risen in the public sector from 1 percent to 1.5 percent.
In addition to hiring challenges, a third of employers (33 percent) said that it has become harder to retain staff in the last 12 months, particularly in the public sector (42 percent). In response, over half (54 percent) of organisations have increased salaries in some capacity and one in four organisations (25 percent) have increased salaries for key staff only.
Just three days into the New Year, today (Friday 4 January), the UK’s top bosses will have made more than a typical full-time worker will earn in the entire year, according to calculations from independent think tank the High Pay Centre and the CIPD. The average (median) full-time worker in the UK earns a gross annual salary of £29,574, while the average FTSE 100 CEO, on an average (median) pay packet of £3.9 million, only needs to work until 1pm on Friday 4 January 2019 to earn the same amount. The £3.9 million figure was calculated by the CIPD and the High Pay Centre in their 
A sudden reversal in the growth in the number of both EU and non-EU migrants in employment in the UK could hit employer plans to take on more staff and worsen skills and labour shortages, according to the latest quarterly Labour Market Outlook from the CIPD and The Adecco Group. While the net employment balance – a measure of the difference between the proportion of employers who expect to increase staff levels and those who expect to decrease staff levels – has remained extremely positive at +22 (compared to +23 in Q3 2018), among employers which currently have vacancies, seven in ten (70 percent) report that at least some of their vacancies are proving hard-to-fill, higher than in Summer 2018 (66 percent) and Spring 2018 (61 percent). 
A new report from the CIPD has found that most of those working in the HR and people management sector are confident exercising their judgement, with six in ten (64 percent) agreeing their job gives them the opportunity to fully express themselves as a professional. But more than just providing stimulating work, the people profession in 2018: UK and Ireland report shows the profession enables individuals to contribute to the ‘greater good’ and gives them a sense of purpose. People professionals also enjoy their job, with more than two-thirds of respondents saying their work makes them happy (70 percent) and energised (67 percent).
Almost half (49 percent) of UK workers are in jobs they are either under- or over-skilled for, according to new research from the CIPD. Its report ‘Over-skilled and underused: Investigating the untapped potential of UK skills’ surveyed 3,700 UK employees and found that more than a third (37 percent) of workers have the skills to cope with more demanding duties than they currently have. At the opposite end of the scale, one in ten (12 percent) employees said they lacked all the skills needed to carry out their job effectively. This means that as many as half (49 percent) of UK workers could be in the wrong job, based on their skill level. The UK has one of most skilled workforces in the world, with 42 percent of workers qualified to degree level, yet it also has the highest proportion of jobs within the OECD which require no qualifications at all.
Improved living standards, deflating pension pots and legal protection against age discrimination have all helped to nudge up the retirement age. The result is that for the first time since the Industrial Revolution five generations of employees are now working side by side. According to a new survey, two thirds of organisations (66 per cent) say that an age diverse workforce helped the company to have a more comprehensive skillset and knowledge base and more than seven in ten (71 per cent) felt that a multi-generational workforce brought contrasting views to their organisation. However, in the YouGov survey of middle market businesses commissioned by RSM, four in ten companies (41 per cent) said that a multi-generational workforce also increased the risk of conflict in the workplace. 
February 27, 2019
The Hitchhiker’s Guide to the Workplace 0
by Mark Eltringham • Comment, Facilities management, Technology, Workplace, Workplace design
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