Hiring bonanza: Nearly nine in ten London employers plan to recruit new staff in next 12 months
Just over 85 per cent of all London employers are planning to recruit staff in the capital over the next 12 months, the highest recruitment intentions in eight years, according to new figures shared with City PM today.
Over two-thirds (67 per cent) of employers who are hiring are looking for permanent staff, whilst a third (33 per cent) are recruiting for temporary positions and 28 of employers are hiring for roles which are going to be fully remote.
Employers in Scotland and Wales have the strongest recruitment intentions, with 88 per cent planning to hire over the next 12 months, followed by 87 per cent in the East of England, according to recruitment giant Hays.
The firm, which reports annually on recruitment intentions across the UK, said it is the highest recruitment intention in eight years, compared to just 65 per cent of employers who were planning on recruiting after the Brexit referendum in 2016.
The research comes as job vacancies hit 1.1m between July and September as reported by the ONS, the highest level since records began in 2001.
Skills challenges increase
The drive to recruit new staff comes as over three-quarters (86 per cent) of employers say they have experienced skills shortages in the last year, increasing from 77 per cent in 2020.
Close to half of employers (46 per cent) say skills shortages have had a negative impact on productivity, whilst 45 per cent say they’ve had a negative impact on employee morale, increasing from 37 per cent the year prior.
To help abate shortages, Hays found that 44 per cent have hired temp or contract workers whilst 22 per cent have increased their marketing activity to attract talent.
Roughly one in five said they have recruited apprentices and 20 per cent have reskilled existing employees into a new position.
Close to a quarter of employers say they are more likely to offer counter offers to staff than pre Covid-19 to retain talent.
“Employers searching for skilled talent has intensified further, due to the quick rebound in the economy, existing skills shortages, and in some areas such as construction, workers returning to the EU as a result of Covid-19 restrictions and Brexit,” Simon Winfield, Managing Director of Hays UK & Ireland, said.
In a bid for talent, businesses are offering salaries high above what is typical for some roles, which isn’t sustainable in the long-term
Simon Winfield, Managing Director of Hays UK & Ireland
“Almost every employer is facing the same challenges in finding the skills they need, and we’re seeing areas of real demand in technology, construction, engineering, and marketing, where employers can’t hire quickly enough,” he added.
While employers may be hiring, just over half (52 per cent) of professionals plan to move jobs in the next 12 months, the lowest number reported by Hays in eight years.
However, 76 per cent of professionals say they either moved jobs or considered moving roles last year while a third (33 per cent) of professionals also report that there is no scope for career progression in their current role.
Instead of solely competing on salary, employers need to compete on what they can offer talent in the long run
Winfield
“Pay is still key but aspects such as offering flexible working, training opportunities, a focus on wellbeing and a culture that facilitates good work-life balance can be the difference in a new starter staying for six months versus six years,” he concluded.