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    Talent & Growth presented by The Animo Group

    The State Of The Market with Neil Carberry, CEO of the Recruitment & Employment Confederation

    Tue Jul 18 2023
    Labour MarketRecruitmentUKTechnologyWorkplace CultureEducationTalent Acquisition

    Description

    The episode covers the current state of the labour and recruitment market in the UK, challenges and adaptations in the labor market, candidate shortage and recruitment strategies, impact of technology on recruitment, education and future professions, attracting talent and salary transparency, and the future outlook for recruitment agencies.

    Insights

    Temporary hiring is on the rise

    Temporary billings have been growing for 35 consecutive months, indicating a push towards temporary hiring.

    Optimism about the market

    Overall, there is optimism about the market, but inflation and interest rates are potential obstacles that could impact businesses' cost of capital.

    Adapting to the changing labor market

    Recruiters need to adapt to the changing labor market and combine traditional recruitment skills with technology.

    Importance of workplace culture

    Workplace culture needs to be redefined, considering different starting points of employees and their diverse needs.

    AI's impact on recruitment

    AI and technology can help with recruitment but human skills are still important.

    Reforming education for future professions

    Reforming further education, higher education, and apprenticeships is necessary to address the unknown future professions.

    Attracting talent with flexible work arrangements

    Offering flexible work arrangements like part-time or job sharing can accommodate different preferences and attract talent.

    Importance of client relationships for recruitment agencies

    Client relationships matter even more during tough times for recruitment agencies.

    Hope for recruitment agencies

    There is hope for recruitment agencies and talent acquisition professionals as the market turns and improves.

    Chapters

    1. Current State of the Labour and Recruitment Market in the UK
    2. Challenges and Adaptations in the Labor Market
    3. Candidate Shortage and Recruitment Strategies
    4. Impact of Technology on Recruitment
    5. Education and Future Professions
    6. Attracting Talent and Salary Transparency
    7. Preserving Cash Flow and Future Outlook for Recruitment Agencies
    Summary
    Transcript

    Current State of the Labour and Recruitment Market in the UK

    00:02 - 06:52

    • Temporary billings have been growing for 35 consecutive months, indicating a push towards temporary hiring.
    • Permanent billings have been dropping month-on-month but may be normalizing after a strong year in 2021 and 2022.
    • Healthcare sector is still growing, albeit at a slower pace, while IT sector has slowed down due to industry trends and speculative nature of investments.
    • Corporate UK is being cautious and opting for temporary hires instead of permanent ones.
    • Candidate availability has increased as more people are looking for jobs to raise their pay or transition from part-time to full-time work.
    • Overall, there is optimism about the market, but inflation and interest rates are potential obstacles that could impact businesses' cost of capital.
    • The handbrake on the market could come off in 2024, leading to a potentially positive market outlook.
    • The UK labour market is experiencing secular changes that make it tighter regardless of economic fluctuations.
    • As confidence returns, demand for recruitment is expected to increase.

    Challenges and Adaptations in the Labor Market

    06:24 - 14:04

    • The labor market is experiencing a shortage of workers in sectors like hospitality and blue-collar logistics due to factors such as the pandemic, aging society, and end of free movement.
    • Recruiters need to adapt to the changing labor market and combine traditional recruitment skills with technology.
    • Inflation has persisted, creating a gap between private sector and public sector wages.
    • The challenges faced by the government in dealing with strikes are significant due to pay pressure.
    • There is still uncertainty regarding attitudes towards the workplace and how to achieve connection and innovation in hybrid or remote working setups.
    • Investing in first-line managers and desk heads is crucial for maintaining a sense of teamwork and achieving recruitment goals.
    • Workplace culture needs to be redefined, considering different starting points of employees and their diverse needs.
    • Long-term thinking about culture and people should remain a priority for companies despite it falling down the agenda recently.
    • Choice and flexibility are important for creating an inclusive environment in the workplace.
    • There may be exploitation of fear in the current market conditions where businesses are pushing people back to the office amidst concerns about the future, money, costs of living, and inflation.

    Candidate Shortage and Recruitment Strategies

    13:37 - 20:47

    • There is a candidate shortage in the market.
    • People are scared about the future, their money, costs of living, and inflation.
    • Businesses are pushing people back to the office.
    • Businesses should define what they need and test it in the labor market.
    • Fantasizing about being in the office or working from home is not perfect for everyone.
    • The recruitment market and talent acquisition market may be impacted by people leaving the industry.
    • Experienced consultants need to focus on business development and relationship building skills.
    • AI and technology can help with recruitment but human skills are still important.
    • A report called 'Tech Enabled Humanity' explores tech adoption, AI's future, and change management in recruitment agencies.

    Impact of Technology on Recruitment

    20:19 - 28:00

    • Recruitment and human skills are the difference makers in the market.
    • Tech advancements like CRM data strategy, automation, and AI can significantly improve productivity and competitiveness.
    • Recruiters should focus on gradually adopting AI rather than being on the bleeding edge.
    • Avoid relying on vendors as technology advisors; prioritize based on loyalty to your agency.
    • Using a generic product well can provide 80% of the utility for only 50% of the price.
    • Adapting to AI is a transitional crisis, not an existential one for employment.
    • Companies need to support people in developing new skills for the changing job landscape.
    • AI has made work more productive but also taken away certain tasks; companies must redesign work to maintain career paths.
    • Entry points into industries may change due to automation, but senior positions are likely to remain stable.

    Education and Future Professions

    27:30 - 34:50

    • The entry points into industries may change due to automation, but senior positions are likely to remain stable.
    • Apprenticeships have played a crucial role in British engineering, and there is a need for new ways to provide experience and skills.
    • Local linkages between employers, skills providers, and education systems can foster entrepreneurship and innovation.
    • AI may not have a significant impact on the basic subjects taught in schools, which are important for cultural literacy and functioning in society.
    • Reforming further education, higher education, and apprenticeships is necessary to address the unknown future professions.
    • Experimentation with different career paths is normal in one's twenties, but ensuring opportunities and experiences for young people is crucial.
    • Business leaders should have clear conversations about the importance of being physically present at work for collaboration and learning.
    • Giving people from long-term unemployment opportunities can be successful if proper pathways are established.
    • Addressing clients' EDI (Equality, Diversity, and Inclusion) problems can lead to increased business for recruitment agencies.

    Attracting Talent and Salary Transparency

    34:29 - 42:00

    • Balanced scorecard is a winning formula for attracting clients and solving EDI problems
    • Consider the sector, location, and office environment when attracting and retaining talent
    • Identify why people like working for your company and leverage that in your offer
    • Develop a strategy for the skills needed in the future to attract the right candidates
    • Talk to recruiters and consider the supply of talent in your area
    • Offer flexible work arrangements like part-time or job sharing to accommodate different preferences
    • Focus on tasks rather than jobs when shaping work arrangements
    • Salary transparency is becoming more important, especially in the EU, but may take time to be fully implemented in the UK
    • Advertising clear salary ranges can be a selling point for companies
    • Setting up transparent salary structures takes time but is worth it for long-term benefits

    Preserving Cash Flow and Future Outlook for Recruitment Agencies

    41:35 - 45:14

    • Recruitment agency owners should focus on preserving cash flow and the fundamentals of the labor market are in favor of this sector.
    • Client relationships matter even more during tough times.
    • Companies will struggle to hire and need to get clever about how they hire, so investment in talent acquisition will come back.
    • Stay engaged and connected with the industry to make a difference when funding returns.
    • There is hope for recruitment agencies and talent acquisition professionals as the market turns and improves.
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