According to new labour market research from the Office for National Statistics (ONS), there is a clear link between lower national levels of productivity and the rise in working from home.
From 2019 to 2022, productivity in the capital fell by 2.7%, with the Northwest of England seeing the strongest growth of 7.9% over the same period. Economists are attributing the decline to the shift to remote work, and argue that decreased engagement, motivation and in-person coordination has damaged productivity in the city.
There’s been a lot of noise about the benefits and risks of working from home. And the recent stats from the ONS do paint a picture of the risks involved. But ultimately, employers need to decide if they’re going to mandate their workforce back to the office based on their own personal data, culture, and the needs of their staff.
If the pandemic and the shifts in workplace flexibility has taught us anything, it’s that every employee has individual needs, and every company has their own needs too. Depending on the industry an organisation is in, their culture, and a myriad of other factors that make the firm what it is, these elements determine whether remote work leads to productivity.
It’s easy to get distracted or anxious by the news that remote work is linked to low productivity on a national level, but that doesn’t mean it’s true for your own organisation. That’s why coming up with ways to measure the productivity of your own firm and basing your decision on this is the most important thing you can do.
But it doesn’t stop there. Considering what your workforce wants is also an important piece of the puzzle, or you could risk losing talented people – in the middle of a skills crisis – if they jump ship for another firm offering flexibility.
The bottom line is that it’s an individual choice on if flexibility works or not, and so don’t be side-tracked or brainwashed by the idea that remote work is bad for business, because for many firms it’s the complete opposite – you just need to figure out if that’s the case for your company.
We’d love to discuss your IT & HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
HR isn’t one-size-fits-all – it’s a spectrum of roles tailored to strategic goals and company culture.
At Langley James IT Recruitment, we’ve been matching HR mavens with their ideal roles since 1999, and we’re here with pointers to guide you through the HR maze.
The below guide is designed to assist you, as an overview of HR roles and responsibilities.
Human Resources Director is responsible for creating and implementing HR policies and activities of the organisation. They also manage the HR staff, overseeing all employee-related initiatives, from recruitment and onboarding to managing performance, promotion, and conducting exit interviews.
Head of HR Manage the execution of the HR Strategy and core areas of the HR department including Recruitment, Employee Relations, Workforce Administration, Employee Engagement, Payroll, Reward and Recognition, as well as maintaining and improving HR systems and management of the HR budget.
HR Business Partner work closely with business leaders and line managers to diagnose people priorities, create people plans, and help implement organisation-wide people approaches. They have an excellent knowledge of the business, a good understanding of all the areas in the people profession, and often act as the point of people expertise for a specific business area.
HR Manager is in charge of the human resources department. They oversee those who perform HR tasks such as finding and hiring new talent. From there, they onboard talent and ensure that the HR file is complete and complies with company procedures and state and federal laws. But the HR manager does more than just hire and onboard people. They work with existing staff to train and develop them into higher positions in the company. A good HR manager is an integral part of the company’s talent growth.
HR Consultants provide a wide range of services for small and large businesses alike, including professional consulting, education, training, and solutions. An HR consultant will perform diverse tasks such as research, analysis, planning and counselling with the aim of advising management on HR structures, policies and procedures. They may also provide HR outsourcing services as required.
HR Analyst is an interdisciplinary role within the human resources department that deals with HR-related matters through technological tools. It is a vital position since, according to every HR analyst job description, they manage all the essential digital records, assist with any HR-related queries, and analyse HR data to provide rapid solutions to any challenges.
Senior HR Adviser is responsible for supporting and actioning day-to-day people-related issues. Those issues will include, recruitment and retention, performance management, employee onboarding, absence management and support, trade union liaison, organisation design, grievance and disciplinary management.
HR Advisor, gives counsel to companies regarding their human resource policies and procedures. Their main duties include offering guidance on employee recruitment and retention, evaluating employee performance and maintaining employee relations.
HR Executive, is a junior-mid-level professional. They oversee recruitment, people management, strategic planning, and organisational human resources policies. They are part of the HR management team and are crucial to the organisation’s success.
HR Coordinators are professionals who complete administrative duties for the HR department. They assist HR managers with a number of roles including recruitment, maintenance of employee records, payroll assistance and administrative support to all employees.
HR Assistants duties are more than likely to include recruiting, hiring and training new and existing staff, as well as planning programs to improve employee welfare. HR assistants also manage payroll, maintain employee records and ensure the HR department runs smoothly day to day.
HR Data Analyst, play a vital role in supporting data-driven decision-making and providing valuable insights to the Human Resources function. Their primary focus is collecting, analysing, and interpreting HR data to identify trends, patterns, and opportunities for improving HR processes and initiatives. This role requires a strong analytical mindset, proficiency in data analysis tools, and the ability to translate complex HR data into meaningful reports and presentations.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Commenting on the latest survey results, Emma Gibson, Office Senior Partner for KPMG Reading said: “The region’s labour market is still largely at a standstill as employers delay investment decisions – including recruitment – until business confidence returns. “Starting salaries are beginning to rise again, as cautious employers carefully recruit essential skills that they cannot do without and are prepared to pay a premium to secure
the best candidates. “Until business confidence improves, prudent employers are focused on retaining staff and upskilling their existing workforce to be in the best shape to seize on growth opportunities as the economy continues to improve.” Neil Carberry, REC Chief Executive, said: “The jobs market looks like it’s on its way back across the UK with clear improvements nationwide. Permanent hiring remains weak in the South, but the rate of decrease eased further from March. The temp market is yet to join the national road to recovery but that may come next month. “There is potential energy stored in the economy, as employers are feeling more confident. Political certainty and falling interest rates should add to lower inflation and help this turn into movement over the course of the rest of the year. REC members report that clients are ready to hire, but hesitant. These numbers suggest that caution may be starting to abate. “Pay growth remains steady, reflecting both settlements made by employers for their staff, but also the substantial National Minimum Wage rise in April. “No attempt to drive growth will succeed without the next government addressing people issues within its first 100 days. This must include reform of the Apprenticeship Levy to cover high-quality, modular training, and a long-term cross-departmental strategy to tackle labour and skills shortages, owned by the Cabinet Office but delivered locally. As the specialists in jobs, recruiters are ready to help, whoever wins on July 4.”
Staff appointments
Recruitment consultancies report on the number of people placed in permanent jobs each month, and their revenues (billings) received from placing people in temporary or contract positions at employers.
Sustained decline in permanent placements
Recruiters based in the South of England registered a drop in permanent staff appointments in May. The rate of decrease, while easing further from March’s recent record, was still rapid overall. According to anecdotal evidence, the latest decrease was attributed to a market slowdown, fewer vacancies, and political uncertainty. Of the three monitored English regions that posted a reduction in permanent placements, the South of England recorded the strongest fall.
Sharper fall in temp billings
A fourth consecutive monthly decline in temp billings was recorded across the South of England in May. The rate of decrease was the most pronounced since July 2020 and sharp overall. Respondents often linked the latest decrease to reduced client activity and the non-renewal of contracts. Other than the South of England, only London recorded a fall in temp billings.
Staff availability
Recruitment consultants are asked to report whether availability of permanent and temporary staff has changed on the previous month.
Growth in permanent staff supply ticks up to six-month high
A rapid and accelerated improvement in the availability of permanent staff was recorded across the South of England in May, thereby stretching the current run of increasing supply to 15 months. The rate of growth quickened for the fourth straight month to the fastest since November
2023, and surpassed the UK-wide average. Surveyed recruiters linked the latest uptick to redundancies and fewer vacancies.
Temp staff availability rises at strongest pace in eight months
Similar to that observed for permanent staff supply, the availability of temp candidates also expanded at a sharp and accelerated pace in May. The uptick was the strongest in eight months and rapid overall. Underscoring the latest rise were widespread reports of layoffs. Of the four monitored English regions, the South of England led the upturn by a notable margin.
Demand for skills
Pay pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Modest rise in permanent salaries during May
May survey data signalled a further rise in starting salaries awarded to permanent staff in the South of England, thereby stretching the current run of increase to 39 months. The rising cost of living and skills shortages continued to exert pressures on pay, noted panellists. That said, the rate of permanent salary inflation across the South of England was modest overall and the weakest of the four tracked English regions.
Temp wage inflation cools on the month
Temp wages rose across the South of England during May. Recruiters noted that clients raised their offers to attract skilled workers and keep pay growth in line with the rising cost of living. That said, the rate of temp wage inflation eased on the month and was notably weaker than the
average recorded over the current 42-month sequence of growth. Moreover, the South of England recorded the weakest rise in hourly pay rates of all the four monitored English regions.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Chris Stott, Office Senior Partner for Manchester at KPMG UK said: “The Report on Jobs data for the North from May highlights the complexities in the current labour market, with placements for permanent staff falling again and continued upward pressure on pay amongst competition for candidates with the right skills. “With expected rate cuts, inflation easing and increased consumer confidence over the summer, we’d hope that the prospect of a better economic outlook for the rest of the year will boost business confidence. Alongside this, business leaders in the North will be watching the General Election closely as they consider their plans for growth.” REC Chief Executive Neil Carberry, said: “The jobs market looks like it’s on its way back across the UK, with clear improvements over last month on most key measures in the North. “Recruiters are noticing that candidates are more confident to put themselves forward now in the North and an increased willingness among candidates to accept temp roles in the region. “There is potential energy stored in the economy, as employers are feeling more confident. Political certainty and falling interest rates should add to lower inflation and help this turn into movement over the course of the rest of the year. REC members report that clients are ready to hire, but hesitant. These numbers suggest that caution may be starting to abate. “Pay growth remains strong, reflecting both
settlements made by employers for their staff, but also the substantial National Minimum Wage rise in April. “No attempt to drive growth will succeed without the next government addressing people issues within its first 100 days. This must include reform of the Apprenticeship Levy to cover high- quality, modular training, and a long-term cross- departmental strategy to tackle labour and skills shortages, owned by the Cabinet Office but delivered locally. As the specialists in jobs, recruiters are ready to help, whoever wins on July 4.”
Staff appointments
Recruitment consultancies report on the number of people placed in permanent jobs each month, and their revenues (billings) received from placing people in temporary or contract positions at employers.
Sustained drop in number of permanent staff appointments
Recruiters across the North of England signalled a further reduction in the number of staff placed into permanent roles, thereby
extending the current sequence of contraction to just shy of a year. The rate of decline was solid and largely consistent with April. Panellists reportedly linked the fall to a drop in demand for permanent staff. The reduction in the North of England was the second-most marked of the monitored English regions, only slower than the South of England.
Temp billings return to growth after three successive monthly falls
The seasonally adjusted Temporary Billings Index posted above the neutral 50.0 mark for the first time in four months in May, to signal
a rise in the number of staff placed into temporary roles across the North of England. Recruiters noted that demand for temporary
staff had increased following new contract wins and the start of new projects. Locally, the growth rate was moderate, but nevertheless the most pronounced of the four monitored English regions.
Staff availability
Recruitment consultants are asked to report whether availability of permanent and temporary staff has changed on the previous month.
Fastest rise in permanent staff supply since last August
May survey data highlighted a fifth consecutive monthly increase in the availability of permanent staff across the North of England. Supply grew at a substantial pace that was the quickest for nine months and notably elevated compared to the long-run series trend. Recruiters often noted that candidate confidence had increased. The South of England was the only monitored region to record a quicker rise than the North.
Growth of temporary staff supply hits ten-month high
In line with the picture for permanent candidates, the availability of temp staff increased further and at an accelerated rate midway through the second quarter. As well as steep, temp staff supply growth was at its most pronounced for ten months.
Panellists suggested that there was increased willingness among candidates to accept temp roles due to redundancies and the current economic climate. The rise in temporary staff availability was however slower than that see at the UK level.
Demand for skills
Pay pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Starting salary inflation accelerates in May
As has been the case in each month since early 2021, recruiters across the North of England continued to report starting salary
growth in May. Some panel members noted higher starting salaries were offered in order to attract skilled candidates, while others
linked the uplift to the seniority of the roles recruited. As well as robust, the pace of increase in the North of England posted a nine-month high
and was the sharpest of the four monitored English regions.
Hourly wage inflation for temp staff posts one-year high
Hourly pay awarded to new temporary joiners rose again midway through the second quarter, thereby stretching the current sequence of growth to six months. The rate of inflation in temp wages was the strongest for a year and substantial overall. Hourly pay rates were reportedly lifted in line with permanent salary growth to ensure pay parity. Regionally, the North of England registered the sharpest rise in hourly pay for temporary
staff in May.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Commenting on the latest survey results, Kate Holt, People Consulting Partner for KPMG in the Midlands said: “This month’s data suggests local employers are slowly taking the brakes off of recruitment freezes and are looking to get their businesses moving again. The Midlands was the only region in the UK that recorded an increase in the number of people getting into permanent work which suggests green shoots of jobs recovery are on the horizon. “With starting salaries rising, local businesses are prepared to pay a premium to get the right skills into their businesses in order to kickstart growth. “The business environment remains challenging, but as the economy slowly improves, and with the
General Election now called which will provide the stability businesses need to start investing again, business confidence is turning a corner. ”Neil Carberry, REC Chief Executive, said: “The jobs market looks like it’s on its way back in the UK, with clear improvements over last month on most key measures, especially in the Midlands. Permanent hiring in the Midlands increased for the first time in six months, and the temp billings have improved in the region. “There is potential energy stored in the economy, as employers are feeling more confident. Political certainty and falling interest rates should add to lower inflation and help this turn into movement over the course of the rest of the year. REC members report that clients are ready to hire, but hesitant. These numbers suggest that caution may be starting to abate. “Pay growth remains steady, reflecting both settlements made by employers for their staff, but also the substantial National Minimum Wage rise in April. “No attempt to drive growth will succeed without the next government addressing people issues within its first 100 days. This must include reform of the Apprenticeship Levy to cover high-quality, modular training, and a long-term cross-departmental strategy to tackle labour and skills shortages, owned by the Cabinet Office but delivered locally. As the specialists in jobs, recruiters are ready to help, whoever wins on July 4.”
Staff appointments
Recruitment consultancies report on the number of people placed in permanent jobs each month, and their revenues (billings) received from placing people in temporary or contract positions at employers.
First rise in permanent appointments for six months
The number of staff placed into permanent roles rose across the Midlands, ending a five-month run of decline. Recruiters linked the renewed uplift to increased demand for permanent staff. Others also noted new client wins. That said, the rate of expansion was only marginal and subdued when compared to the long-run series trend. The Midlands was the only monitored English region to record an uptick in permanent placements.
Third monthly rise in temp billings seen in 2024 so far
May data saw the number of billings received for the employment of temporary staff increase for the second month in a row across the Midlands. Survey respondents cited an improvement in demand for temp workers, while others mentioned a rise in candidate availability. While only modest, the uplift was the sharpest for three months. Regionally, only the North of England registered a faster increase in temp billings than the Midlands.
Staff availability
Recruitment consultants are asked to report whether availability of permanent and temporary staff has changed on the previous month.
Permanent staff availability rises at quickest rate seen this year so far
The seasonally adjusted Permanent Staff Availability Index signalled a fourteenth consecutive monthly rise in permanent candidate numbers in May. There were reports that the uplift in permanent staff supply was linked to a rise in redundancies. The rate of increase was again substantial and the strongest seen this year so far, but subdued when compared to the national average.
Solid rise in temporary staff supply in May
Temp staff availability across the Midlands picked up again in May, as has been the case for just over a year. Recruiters mentioned an
increased willingness among candidates to accept temporary contracts. Though easing from April, the rate of growth in temp staff
supply was solid. The Midlands recorded the slowest rise in temp staff availability of all four monitored England regions for the third month running.
Demand for skills
Pay pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Starting salary inflation loses momentum in May
Recruiters across the Midlands continued to record an increase in starting salaries in May, thereby stretching the current sequence
of uplifts which began in March 2021. Some panellists mentioned that a rise was due to an increase in the proportion of senior
roles hired. Though strong, the rate of salary inflation eased on the month and remained subdued when compared to the long-run
trend. The Midlands recorded the second-strongest salary growth of the four monitored English regions, behind only the North.
Strongest rise in hourly pay for five months
Average hourly pay for short-term staff continued along an upward trend midway through the second quarter. The rate of temp wage growth was substantial and the most pronounced in 2024 so far. According to anecdotal evidence, the uptick followed a rise in demand for temporary workers.
Only the North registered a sharper rise in temp wages than that seen locally.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Commenting on the latest survey results, Jon Holt, Chief Executive and Senior Partner of KPMG in the UK, said: “We know our labour market is resilient. The big picture is that unemployment is historically low with the ease of filling vacancies back to pre- pandemic levels. Taken together with today’s data and expected interest rate cuts, inflation easing and increased consumer confidence over the summer, we will hopefully move towards a better economic outlook for the second half of 2024. “But May’s data underscores the complexities in the current labour market. While demand overall remains weak due to firms still stalling on hiring decisions, the pace of decline has slowed for the third month in a row. Some sectors even saw demand growth – although a lack of skilled applicants could put further upward pressure on pay as employers compete to attract the best talent. “Business confidence is ready to bounce back. And as well as counting on a more dovish Bank of England, ahead of the General Election CEOs will be closely following all parties’ policy commitments as they consider their plans for future growth.” Neil Carberry, REC Chief Executive, said: “The jobs market looks like it’s on its way back, with clear improvements over last month on most key measures, especially in the North and Midlands. While permanent hiring remains weak, these are the best numbers we have seen in more than a year, and the temp billings number has also improved. “There is potential energy stored in the economy, as employers are feeling more confident. Political certainty and falling interest rates should add to lower inflation and help this turn into movement over the course of the rest of the year. REC members report that clients are ready to hire, but hesitant. These numbers suggest that caution may be starting to abate. “Pay growth remains steady, reflecting both settlements made by employers for their staff, but also the substantial National Minimum Wage rise in April. “No attempt to drive growth will succeed without the next government addressing people issues within its first 100 days. This must include reform of the Apprenticeship Levy to cover high- quality, modular training, and a long-term cross- departmental strategy to tackle labour and skills shortages, owned by the Cabinet Office but delivered locally. As the specialists in jobs, recruiters are ready to help, whoever wins on July4.”
Executive summary
The Report on Jobs is unique in providing the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies and employers to provide the first indication each month of labour market trends.
The main findings for May are:
May sees weaker decline in placements
Permanent staff appointments continued to fall in May, according to the latest survey of UK recruitment consultants. It was the twentieth successive month in which placements have fallen, but the latest decline was modest and the slowest since March 2023. A similar trend was seen for temp billings, with the latest contraction the weakest in four months. There were reports that slow decision-making, a lack of vacancies and specific candidate shortages weighed on placements.
Further uplift in pay rates
Amid reports of a competitive market landscape, alongside evidence of a ripple impact on base pay rates following April’s increases in the national minimum and living wages, typical starting pay for candidates rose again during May. For permanent workers, salaries were reported to have increased markedly and to only a slightly lesser extent than April’s four-month high. Temp staff saw a similar trend, with pay rising at only a slightly slower pace than in the previous month.
Staff vacancies down only slightly
Although demand for staff continued to fall in May, extending the current downturn to seven months, it did so only marginally and to the lowest degree in this sequence. Moreover, the latest fall was exclusively led by permanent workers as temp staff demand was unchanged in the latest survey period.
Staff availability rises to greatest degree since end of 2020
May’s survey revealed another steep increase in staff availability. The rate of growth was the steepest recorded by the survey since December 2020. The faster expansion in the number of people looking for work was seen for permanent job roles. Panellists noted that a mixture of redundancies, higher unemployment and reduced demand for staff led to the broad rise in candidate availability.
Staff Appointments
Recruitment consultancies report on the number of people placed in permanent jobs each month, and their revenues (billings) received from placing people in temporary or contract positions at employers. An index reading above 50 signals a higher number of placements/billings than the previous month. Readings below 50 signal.
Modest reduction in permanent placements
Permanent placements made by UK recruitment consultants fell again in May, extending the downward trend that began in October 2022. That said, the rate of contraction was modest and the softest in over a year, as signalled by the seasonally adjusted Permanent Placements Index reaching a 14-month high in May. Anecdotal evidence from the survey panel pointed to fewer job openings at clients amid a lack of
available roles. There was also evidence of delayed hiring decisions. Some panellists continued to report a lack of suitable candidates for available positions. There was a steep reduction in the number of permanent placements in the South of England. However, a return to marginal
growth was seen in the Midlands.
Temp billings fall at slower pace
The seasonally adjusted Temp Billings Index remained below the crucial 50.0 no-change mark for a seventh successive month in May.
However, a rise in the index pointed to a slower and more modest fall in temp billings. Where there was a decline, this was linked by panellists to a mixture of reduced demand and candidate shortages for specific roles. Two English regions recorded a drop in temp billings (London and the South of England). In contrast, solid growth was seen in the Midlands and the North of England.
Vacancies
Recruitment consultants are asked to specify whether the demand for staff from employers has changed on the previous month, thereby providing an indicator of the number of job vacancies.
Slight fall in demand for staff
The seasonally adjusted Total Vacancies Index remained below the crucial 50.0 no- change mark in May to signal a fall in overall demand for staff for a seventh successive month. However, with the index rising to 49.7, from 48.3 in April, the rate of contraction was marginal and the slowest in this sequence.
Permanent & temporary vacancies
Latest data showed that permanent staff vacancies continued to fall in May, extending the current downturn to nine months. However, the rate of contraction was marginal, and the weakest recorded by the survey since last October. Meanwhile, temp worker demand was unchanged in May
following a three-month period of falling temp vacancies.
Public & private sector vacancies
There were concurrent increases in private sector vacancies for both permanent and temporary workers during May. The rate of
growth for permanent staff was solid and the strongest for a year. This contrasted with only a marginal rise for temp workers. For public sector workers, demand continued to fall for both permanent and temporary staff. The steeper contraction was again for permanent workers. In the case of temp staff, the reduction was only marginal and the weakest in the current three-month sequence of declining vacancies.
Vacancies by sector
Recruitment consultancies are requested to compare the demand for staff according to sector with the situation one month ago.
Permanent vacancies
Of the ten broad sectors covered by the survey, just three recorded growth. The strongest increase was seen for Engineering, followed by Blue Collar. The steepest drops in demand for permanent workers were seen for Retail and Secretarial/Clerical.
Temporary vacancies
Temporary staff demand rose for half of the ten broad sectors in May. The strongest growth was for Engineering followed by Blue Collar. Where vacancies fell, the most prominent decline was again seen for Retail.
Staff availability
Recruitment consultants are asked to report whether availability of permanent and temporary staffhas changed on the previous month. An overall indicator of staff availability is also calculated.
Candidate supply rises to strongest degree since end of 2020
The availability of staff increased sharply during May and for the fifteenth successive month. The rate of growth was also the steepest recorded
by the survey since December 2020. This was signalled by the seasonally adjusted Total Staff Availability Index which rose to 62.2 in May, up
from 60.4 in the previous month. Permanent staff availability rose in May to a steeper degree than for temporary workers.
Steep expansion in permanent staff availability
Permanent staff availability continued to improve during May, extending the current period of expansion to 15 months. Moreover,
the rate of growth was the highest since the end of 2020. Panellists reported that a mixture of redundancies, reduced demand and less
vacancies had led to the latest rise in candidate availability. By English region, the strongest rises in permanent staff availability were seen in the
South and North. The slowest increase was in London, but even here the rate of growth was still steep.
Temp staff availability continues to rise steeply
The availability of temporary staff increased again in May in line with the trend since March 2023. The rate of expansion was steep, though softened little since April’s recent high. There were reports from panellists that redundancies and higher unemployment, alongside a general drop in demand for candidates, had driven growth in temp candidate supply. There was some divergence in growth rates by English region. Whereas a steep and accelerated rise was seen in the South of England, the Midlands recorded a relatively modest increase in temp staff availability.
Demand for skills
Recruitment consultancies are invited to specify any areas in which they have encountered skill shortages during the latest month.
Pay pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as well as average hourly rates of pay for temp/contract staff.
Marked increase in starting salaries during May
May’s survey showed that permanent starting salaries increased again, marking a thirty-ninth successive monthly upturn. The degree to
which salaries rose was again marked and little changed on April’s four-month high. Panellists commented that wages continued to rise in
line with broader inflationary pressures and the high cost of living. Some panellists noted that salaries were being raised in response to April’s increase in the national minimum wage. In England, the steepest increase in permanent salaries was seen in the North and the slowest
in the South.
Temporary wage inflation remains high
Temporary pay continued to rise at a similarly marked pace to starting salaries during May. Wage inflation has now been registered in
each month since March 2021. Panellists noted the inflationary impact of April’s national minimum and living wage increases, which in some instances were reported to have lifted broader pay levels. Firms were also reported to be willing to bolster pay to attract high quality candidates. As with permanent workers, the steepest rise in temp pay was generally found in the North of England, with the weakest seen in the South.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Commenting on the latest survey results, Anna Purchas, Senior Partner for KPMG’s
London office said: “The slowdown in recruitment activity in London appears to be tailing off, with May signalling the weakest downturn in people finding permanent work in 20 months. “Businesses are still recruiting to fill their most crucial vacancies, which has resulted in starting salaries rising for both permanent and temporary staff, as employers are prepared to pay a premium for the right skills. “We’re seeing more people now putting themselves forward for jobs in London. With inflation heading towards the golden 2% and the General Election ahead, you could expect employers to start to feel more confident to press go on their investment strategies, including recruiting for growth.”
Neil Carberry, REC Chief Executive, said: “The jobs market looks like it’s on its way back in the UK, with clear improvements. In London, the downturn in permanent placements was the softest in 20 months and the temp picture was better with the rate of contraction easing to a four-month low. “There is potential energy stored in the economy, as employers are feeling more confident. Political certainty and falling interest rates should add to lower inflation and help this turn into movement over the course of the rest of the year. REC members report that clients are ready to hire, but hesitant. These numbers suggest that caution may be starting to abate.
“Pay growth remains strong, reflecting both settlements made by employers for their staff, but also the substantial National Minimum Wage rise in April. “No attempt to drive growth will succeed without the next government addressing people issues within its first 100 days. This must include reform of the Apprenticeship Levy to cover high- quality, modular training, and a long-term cross- departmental strategy to tackle labour and skills shortages, owned by the Cabinet Office but delivered locally. As the specialists in jobs, recruiters are ready to help, whoever wins on July 4.”
Staff appointments
Recruitment consultancies report on the number of people placed in permanent jobs each month, and
their revenues (billings) received from placing people in temporary or contract positions at employers.
Downturn in permanent placements softest in 20 months.
Permanent placements fell across London for the twentieth successive month in May. The latest downturn was attributed to reduced hiring activity as a result of political uncertainty and the muted economic outlook. However, the rate of decrease moderated for the third straight month to the weakest in the aforementioned sequence amid reports of successful onboarding of hires and increased availability of candidates. Of the three monitored English regions that posted a reduction in permanent placements, London recorded the weakest fall.
Sharp, albeit weaker decline in temp billings
May data revealed a fall in temp billings received across London, thereby extending the current run of decrease to five months.
The rate of contraction was sharp overall, despite easing to a four-month low. Anecdotal evidence linked the drop in
temp billings to fewer contract roles, the completion of projects and some temp roles being converted to long-term positions. Other than London, only the South of England recorded a fall in temp billings.
Job vacancies
Permanent vacancies further fell across the capital in May. Albeit stronger than that observed nationally, the rate of decrease was the weakest since March 2023. Demand for temporary workers also deteriorated during the latest survey period. A quicker rate of contraction was recorded, with temp vacancies falling at the strongest pace since the start of 2021.
Staff availability
Recruitment consultants are asked to report whether availability of permanent and temporary staff has changed on the previous month.
Supply of permanent candidates expands rapidly
As has been the case in each of the past 18 months, recruiters across London recorded an increase in the availability of permanent
staff in May. Though easing from April, the rate of expansion was rapid overall. The upturn was commonly linked to reports of
redundancies. The expansion in permanent labour supply in London was the softest seen of all four monitored English regions.
Availability of temporary staff expands rapidly in May
Redundancies were again widely linked to the latest uptick in the supply of temporary staff in May, with expansions seen across
the capital for a seventeenth straight month. While the rate of increase moderated notably from April’s eight-month high, it was rapid
overall. The South of England was the only monitored English region to record a stronger rise in temp staff availability than that seen for
London.
Demand for skills
Pay pressures
The recruitment industry survey tracks both the average salaries awarded to people placed in permanent jobs each month, as
well as average hourly rates of pay for temp/contract staff.
Starting salary growth quickens to three-month high
May data signalled a sharp rise in salaries awarded to new permanent joiners in London. Recruiters noted that many clients raised
their offerings in line with the rising cost of living, with some also hoping to attract suitably-skilled workers. Though ticking
up further from March’s 37-month low, the respective seasonally adjusted index printed below the long-run average. The rate of inflation seen across London matched that observed for the UK as a whole.
Sharp rise in temp wage rates
Recruiters based in London recorded a further rise in hourly pay rates for temporary staff in May, thereby stretching the current
sequence of inflation which began in March 2021. Though sharp overall, the rate of wage growth was weaker than April’s seven-month
high and again slower than the UK-wide average.
Official data: UK average weekly earnings
The Office for National Statistics (ONS) continued to report growth in whole economy earnings in the three months to March. According to the latest data, earnings rose 5.7% on the year, unchanged from the previous period. Underlying earnings growth for the public sector rose to 6.2%
in the three months to March, the best outturn seen since last November. Private sector earnings growth also continued to increase but, at an annual rate of 5.9%, to a slower degree than in the public sector.
Regional comparison
The KPMG and REC, UK Report on Jobs: London is one of four regional reports tracking labour market trends across England. Reports are also available for the South of England, the Midlands and the North of England.
Staff appointments
The number of permanent staff appointments across the UK dropped again in May, as has been the case for the past 20
months. That said, the rate of contraction was the softest in over a year and only modest overall. Three of the four monitored English regions registered falling placements, with the quickest drop seen in the South. Meanwhile, the Midlands recorded a renewed uplift. Meanwhile, billings for the employment of temp workers fell again at the national level, thereby stretching the current sequence of decline to seven months. The sustained downturn was led by further decreases across London and the South of England. In contrast, the North saw a return to growth and a sharper upturn was recorded across the Midlands.
Candidate availability
There was a further rise in permanent staff availability across the UK in May, thereby extending the current sequence of growth to 15 months. Moreover, the uplift was the most pronounced seen since the pandemic (December 2020). Excluding London, all of the monitored English regions recorded a faster increase in permanent staff supply in May. At the national level, though temporary staff supply rose sharply in May, the pace of expansion slowed slightly from April’s 40-month high. The Midlands and London registered slower increases in availability, while growth accelerated in the South and North of England.
Pay Pressures
As has been the case on a monthly basis since early-2021, May survey data revealed ongoing salary growth at the UK level. Though starting salaries rose strongly, the upturn lost momentum in May and was notably subdued compared to recent trends. All four monitored English regions recorded permanent starting salary growth, with the quickest inflation seen across in the North of England. Similarly, the rise in hourly pay rates of temporary staff was strong at the national level, albeit easing from April’s ten-month high. As was the case with permanent salaries, the North of
England registered the fastest growth of temp rates, while the South of England recorded the slowest.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Our panel of HR experts advises on alternative retention methods to promotions and pay rises
by PM Editorial
People nowadays don’t expect to stay in a role until retirement, especially at the front end of their career. They often have more than one career in their work lifetime. We’re all on LinkedIn now so opportunities to embrace change are constantly front and centre – and that’s also what we’re competing with in the HR profession.
But we still want to get maximum benefit from our people while they’re with us. Remuneration and promotion are perennial engagement factors – but they are far from the whole story. First, explore what motivates the employee. Someone who’s intellectually engaged at work is more likely to be experiencing engagement. Also, explore where their skills are a good fit, and agree objectives that will stretch them beyond their normal remit.
Additionally, ensure the worker is feeling valued not just for what they do, but the ways in which they do it. Finally, consider the whole team and work environment. Ask them what their feelings toward work are. Do they feel psychologically safe? And my favourite question, where is their work joy?
One of the most important conversations any leader can have with their team member is about how they want to develop their career. Not only does this help avoid assumptions or judgements, it slows things down to work out what the individual wants.
This may not be the dilemma you might think; people increasingly value purpose over remuneration. It’s worth evaluating your culture and working out how you can shape this role to help your HR coordinator contribute towards the wider organisation with more of a senior mindset.
For example, could she lead a project linked to her own career development? Would she like to have more face time with senior management? Giving her the space to think about this will be essential.
You must give proper consideration to what you think the organisation needs, the particular skills your employee has, and ‘why now’, so that there is a good business case. You can’t stop people from leaving but, in addressing this proactively, you are consciously creating a positive working environment.
One of the benefits of working in HR in a smaller organisation is the opportunity to experience lots of areas instead of only working in your team’s specialism.
Try to find out where her interests lie and help her develop in those areas using the CIPD Profession Map as a starting point. It’s a great tool and you can then direct her to the CIPD’s Learning Hub, which contains great free courses on a range of topics.
You can also help her develop confidence in dealing with line manager queries by allowing her to shadow more senior members of the HR team; for example, as a notetaker in an HR strategy or welfare meeting.
Autonomy is important for engagement, so it’s a good idea to look for ways she can show her initiative. Process improvement is where someone new to an organisation can bring a fresh perspective. Also, be sure to encourage her to develop relationships outside of the HR team and learn about different areas of the business. If there are opportunities for cross-team working, involve her in these too.
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
Pay parity ‘remains out of sight’ as report suggests 21 year olds entering the workforce may never see it
The gender pay gap in the UK will “take 45 years to close”, according to data from PwC, despite organisations reporting a decrease in their pay gaps this year.
According to PwC’s Mandatory UK Gender Pay Gap Reporting, an analysis of the gender pay gap using government data, the mean hourly pay gap has dropped by 0.4 per cent from 12.2 per cent in 2022-23 to 11.8 per cent. Meanwhile, the median pay gap fell from 9.2 per cent to 9.1 per cent.
But the analysis also found that since the implementation of mandatory UK gender pay gap reporting in 2017 for companies with more than 250 employees, the average gender pay gap has only reduced by 1.6 per cent.
“While it is encouraging to see the pay gap reducing each year, the rate of change remains modest,” the report said. “Gender pay parity therefore remains out of sight and it is unlikely that a 21 year old entering the workforce today would see gender pay parity in their working lifetime.”
Jemima Olchawski, chief executive at the Fawcett Society, told People Management: “At the current rate of change, women over 40 will suffer the pay gap until they retire; this isn’t acceptable.
“A thriving economy relies on the full participation of women, and yet too many are locked out of work they are qualified for and capable of doing. For too long, women have put up with less fair and less equal working arrangements in exchange for flexibility.”
Olchawski added that employers must take immediate measures to ensure women were able to work to their full potential and experience. “Making flexibility the norm will make it easier for women to get the flexibility they need, and normalise men taking on their fair share of caring responsibilities. We cannot afford to wait,” she explained.
Katy Bennett, diversity, equity and inclusion consulting director at PwC, said: “While the gender pay gap continues to move in the right direction, the data once again highlights that organisations face difficulties in meaningfully reducing reporting figures.
“Societal barriers play a strong part but there are still things businesses can do to drive change and so it is critical for organisations to truly understand gender pay gap drivers and take targeted actions to address them.”
She added that reporting landscapes were fast changing, with many organisations focusing on pay equity and transparency beyond gender. “It is now more important than ever for organisations to take a step back to fully understand the state of pay fairness and diversity within their workforce,” said Bennett.
“By truly understanding any barriers that exist within the workforce and embracing pay transparency, organisations can navigate the reporting landscape and use it as a way to shape their narrative, as opposed to letting it dictate it.”
According to the PwC report, of the 10,408 companies that disclosed their gender pay gap for both 2023-24 and 2022-23, three in five (58 per cent) reported a decrease in their pay gap compared to the previous year. However, most of these decreases were less than 2 per cent.
This represents a slight increase over 2022-23, when 53.7 per cent of organisations reported a decrease in their mean pay gap, according to PwC. A fifth (20 per cent) of organisations reported no change or an increase of between 0 and 2 per cent in their pay gap, compared to 17.6 per cent in 2022-23.
The report said: “The gender pay gap itself can be a lagging indicator, with positive actions to improve gender representation taking years to significantly impact these figures; acknowledging the external societal influences of systemic barriers, change remains challenging.
“However, to make meaningful and sustainable reductions to pay gaps, it is critical for organisations to truly understand gender pay gap drivers and take targeted actions to address them.”
Charles Cotton, senior reward adviser at the CIPD, told People Management: “Pay gap reporting is crucial for ensuring a fair workplace and offers clear business benefits, such as attracting and retaining talent by demonstrating a commitment to best practices.
“Employers aiming to improve their gender balance can adopt several effective strategies, including expanding flexible working opportunities, reviewing the criteria and assumptions used in recruitment and promotion, and analysing the outcomes of people’s policies and practices.”
But he also noted that some factors contributing to the pay gap exist outside the workplace, such as stereotypes regarding suitable employment for men and women: “Therefore, to make meaningful progress in reducing the gender pay gap, both government and society must also take active roles.”
The analysis also found that the financial services sector continues to report the biggest gender pay gaps, “reflective of the ongoing issues with gender equality within the sector, where potential regulations on diversity and inclusion may be introduced by the Financial Conduct Authority later this year,” the PwC said.
For more information on gender pay gap reporting, visit the CIPD guide page here
We’d love to discuss your HR recruitment needs and help you find your next superstar. Please call us on 0207 788 6600 or email us at langleyjames@langleyjames.com and one of our consultants will be happy to advise you. You can also follow us on Facebook.
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