‘The cart has at last caught up with the horse’; great news for job seekers in August’s Labour Market Statistics

Bristol, the home of Sanderson’s head office, is the 10th best city in the UK to find a job, according to the Staffing Industry Analysts. With 0.48 job seekers per vacancy, Bristol is one of the most independent and stable cities outside of London.

For Bristol and the rest of the UK, employment continued to rise, following the general direction the labour market has been growing in since late 2011. There were 30.61 million people in work in September, which is 74,000 more than for April 2014. Usually, high levels of job creation, as we are experiencing now, are accompanied by low wages. However, as employment has risen in recent months, so have real wages ('real' wage is income expressed in terms of purchasing power as opposed to actual money received). This is the first time that UK real wages have grown since the financial crisis, and the first time that wage growth has exceeded the rate of inflation.

The salary gap between the highest and lowest paid regions has significantly reduced over the past year. For instance the gap between London, the highest paid region, and Northern Ireland, the lowest paid, has shrunk by £1,718 since August 2013. However, this may be more to do with London's slow wage growth compared to the regional cities. Alexandra Jones, CEO of Centre for Cities, said that “we are failing to make the most of cities’ economic potential”, and advised that "devolving more funding and powers to UK cities so they can generate more of their own income and play to their different strengths will be critical to ensuring this is a sustainable, job-rich recovery". The Minister for Cities, Greg Clark, pointed out that"in the last two years the UK has created over a million jobs, of which over 750,000 are outside London".

In terms of candidate availability, the number of both permanent and contract available workers has fallen further, maintaining the upward pressure on pay. The pay pressure is being fed by a combination of ‘strong demand for staff and shortages of suitable candidates’, according to data collected by REC Corporate and KPMG. They found that around 32% of consultants reported higher salaries last month, with just 3% reporting a fall. According to APSCo, there has been ‘a loss of momentum for jobs and sectors that performed remarkably well over the past year’, as permanent vacancies begin to plateau (rising at their slowest rate in 10 months) and temporary placements almost stall. Based on current growth forecasts, there are now predicted to be over 1 million vacancies available by the end of 2014.

Sustainable Solutions Series Edition #3: Employer Brand

How do make your company appealing as a prospective employer without raising salaries?

In response to the recent Labour Market Statistics, this series will offer examples of ways in which recruiters and employers can thrive during low candidate availability. In this, the third in our series of articles demonstrating how you can manage the dwindling talent pool, we explore the importance of a good employer brand.

An employer brand promises a particular kind of working experience; it is the impression that the public and job seekers have of what a company is like to work for. A positive employer brand works as an attraction and retention tool because it appeals to the kind of people who would benefit from and thrive in a specific company’s culture.

Companies like Google or Nike with glowing employer brands don’t need to throw unnecessarily high salaries at candidates; they have constantly and consistently built their public perception as one of extreme capability, and are therefore seen as having the freedom and scope to offer great employment packages.

There are a number of factors which contribute to employer brand, including:

• The official messages through company careers site and social media channels
• The candidate experience throughout the recruitment process (slick process, personal contact, interesting interview formats, positive interviewers, prompt feedback)
• A welcoming onboarding and induction process
• Word of mouth; the opinions of current, former and potential employees
• A clear vision
• Working environment
• The opportunity to learn and progress
• Flexibility to balance work and personal commitments
• The quality of leaders and managers
• The perception of the company within their sector/local area
• The little things which differentiate you from your competitors

Strangely, it is often underestimated as a retention tool, but many CEOs argue that its importance actually exceeds that of salary. Candidates want to see that their prospective employers balance the needs of the business with the needs of its employees. This says to the candidate that their wellbeing is important to the company.

According to Ere.net, ‘top professionals care about the people they work with more than anything else’. Communicating to your candidates that their future colleagues will be pleasant and productive to work with is a vital component of employer brand. Not only can they learn from working with strong co-workers, the fact that a company is full of top talent is a strong indicator of its quality.

Once a good employer brand has been established, it must be effectively communicated to your candidates. If your company effectively markets itself as an employer of choice, the candidates will meet you halfway in the recruitment process, sourcing you just as you source them. The promise of a good experience, the potential for growth and being able to say that they work for your company with pride is often a deal-breaker.

High Risk, High Reward (Part 2): the challenges and potential solutions for flexible workers

Read the first instalment “High Risk, High Reward (Part 1): 5 reasons people are choosing temporary work” here.

The UK labour market has experienced a structural change; flexible working is here to stay with freelancers, contractors and agency workers contributing to an increasing percentage of the modern workforce. ​We have already explored workers' motivations for this kind of work, and it is important to consider the pitfalls, risks and challenges of electing to bypass traditional permanent employment.

1. Job and income security 

Whilst there may be opportunities for higher earning potential, flexible working can struggle to provide the same consistency of income and employment of permanent working. The frequency and duration of employment will vary and for many, continually searching for their next job is a daunting prospect.

Income fluctuation makes financial planning difficult and can leave people feeling vulnerable. There are security issues to consider, as a temporary worker's ‘​psychological contract’ (the perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other) leaves room for interpretation and confusion.

2. Vulnerability

With the responsibility of negotiating and re-negotiating contracts, passive individuals who lack the natural resources to effectively promote themselves are at a major disadvantage. Of those who do get employed, large percentages are unclear about their rights; in fact, in a recent agency working focus group, only 1 in 25 understood where they stood. 

Further vulnerability stems from tax issues, as managing your own tax can be difficult due to the complicated regulations. In addition, independent workers miss out on tax free expenses that companies pay their employees.

3. Training and progression

With no permanent position held, promotions are rarely possible. Many managers are reluctant to invest money or time into developing and training ephemeral employees.

When flexible workers begin a new role, some companies overlook a proper induction and by failing to comprehensively introduce new employees into the business, flexible workers can start off on a weak foot, unable to feel satisfaction and loyalty to their company. This can impede productivity.

4. Job satisfaction

The lack of a sense of belonging can put a strain on the employee/employer relationship in a way which is not necessarily the case for permanent staff. Contractors often testify to being allocated the majority of the hardest or dullest tasks, exacerbated by the ‘domino effect’ of other employees following the example set by management. This is likely to isolate temporary staff and create an ‘us and them’ divide. 

Solutions?

This relationship should work for both parties, alleviating these challenges to enjoy the benefits. If companies invest time, money and effort into temporary workers, then in many cases they will reap the benefits of a loyal, satisfied and committed individual with an increased productivity.

Three parties that can help be part of the solution are:

Recruitment Agencies:

• Have a vital role as a broker between candidate and employer who can help address power imbalance
• Provide information and access to training, manage paperwork and endorsements for mortgages etc.
• Explain income/tax liabilities and employee rights and responsibilities
• Go the extra mile by offering career support and advice

Employers:

• Provide thorough inductions for temporary staff as part of the integration process
• Evaluate and give feedback
• Encourage and motivate just as they would their permanent employees
• Lead by example
• Provide training and development opportunities

Government:

• Commission independent parties to provide income protection information
• Offer Universal Tax Credit, can explain the tax system and provide guidance

Facts and figures taken from: Recruitment and Employment Confederation (REC) Report – “Flex Appeal: Why freelancers, contractors and agency workers choose to work this way”