IS THE CANDIDATE MARKET IS BACK FROM THE DEAD?
Posted on 28th October 2022
A long-standing trend in the UK hiring market has been the limited availability of high quality candidates, causing many businesses to leave crucial roles unfilled or to drastically re-shape new job specifications. However, as the cost-of-living crisis continue to take hold and add pressure on household finances, many workers are exploring new career opportunities in the hope of boosting salaries and additional benefits. With spiralling bills acting a catalyst for this candidate surge, businesses need to quickly ensure that their hiring strategies are ready to attract the best new talent available.
A SURGE IN ACTIVITY
Evidence of a surge in candidate activity seems well grounded - particularly in direct relation to soaring household bills. For example, earlier this year, a study from PwC looked at 52,000 employees found that 20% were planning on finding new employment in the next year(1). In June, the CIPD also published research findings that "more than 6.5 million people in the UK expect to quit their job in the next 12 months" with better pay and benefits seeming to be the primary motivator(2). In August, KPMG surveyed 1,500 UK workers and found that "35% of respondents were planning on finding a new career in the next 12 months, due to the rising cost of living"(3). KPMG also went on to stress that this represented a genuine opportunity for businesses in professional and financial services industries, who have been finding new talent difficult to come by.
WILL BUSINESSES BE CAUGHT OFF GUARD?
While this trend does indeed present a real opportunity for business across a multitude of industries, it also demands that businesses are fully aligned to the needs of these new potential candidates. With more workers keeping an eye of the jobs market as a direct result of the cost of living crisis, salary and renumeration packages will undoubtedly be the primary mechanism available for many employers to attract new candidates. Of course, this will need to be done with precision following industry benchmarking exercises - taking various considerations in account. Employers will also need to consider factors that may not be directly viewed as renumeration but will financially impact job seekers. For example, by offering an increased level of hybrid and remote working, potential employees will be able to save significant costs through reduced commuting - whether using public transport or their own vehicles. Similarly, other benefits such as corporate medical cash plans, shopping vouchers, and the level of pension contributions provided will all no-doubt be closely assessed from those looking to jump ship!
SALARY STILL ISN'T EVERYTHING
While salary and financial benefits may be the primarily motivator for many new candidates, there is still a huge opportunity for businesses to differentiate themselves based on other practices. This is really exemplified in the CIPD's comments that "better pay and benefits are the main motivator to leave, but people are also looking for increased job satisfaction and better work life balance"(4). A more detailed breakdown of needs was also given as 35% of candidates seeking better pay and benefits, 27% wishing to increase job satisfaction, 24% looking for a better work-life balance and 23% simply wanting a different type of work(5). By looking at these criteria, an increase in job satisfaction for new employees could perhaps offer the biggest opportunity for businesses to become employers of choice. Job satisfaction will, of course, inevitably centre around the nature of the work itself and the industry it operates within. However, there is still a large scope for companies to greatly enhance employee satisfaction through adopting forward-thinking working practices and embracing a harmonious, positive working culture. The study from PwC found a similar set of employee needs with pay as the primary driver but also citing job fulfillment, personal authenticity, and schedule flexibility(6).
SHAPING YOUR HIRING STRATEGY
At Netbox Recruitment, we have worked with a multitude of businesses in shaping various aspects of their hiring strategies that are directly relevant to the current opportunities and challenges facing businesses through the revitalised availability of new candidates. We have undertaken compressive salary benchmarking, advised on benefit structures and how to act as an employer of choice by offering real benefits that truly strike a chord with today's best candidates. For more information and for a free hiring review contact us on firstname.lastname@example.org or call 0344 2572070.
(4, 5) www.cipd.co.uk/about/media/press/220622-cipd-workers-plan-to-quit