Annabelle Humphreys
Annabelle Humphreys
Events and Marketing Assistant at TALiNT Partners/TALiNT International

Government has received only 27 applications for temporary work visas

In response to the Government’s announcement regarding the granting of temporary visas to workers in the transport industry, Marian Khaliq, Partner and Head of Immigration at law firm Bishop and Sewel, said that the Government’s hostile post-Brexit immigration policies are responsible for prolonging the shortage of HGV drivers.

Khaliq said: “The Government was forced to act quickly after the shortage of HGV drivers recently resulted in fuel shortages, panic buying and the closure of some petrol stations.

“Other sectors, such as the food industry, have also been affected by labour issues, resulting in shortages of food supplies to supermarkets and restaurants, leading to fears of some foods being unavailable at Christmas.

“To deal with this, the Government will be issuing 4,700 ‘Seasonal Worker’ visas for drivers in the food haulage sector (expiring on 28 February 2022) and 5,500 ‘Seasonal Worker’ visas for poultry workers (which will expire on 31 December 2021). In both instances, the period of visa free access offered appears far too short to incentivise workers to come to the UK.”

Boris Johnson confirmed earlier this week that the Government had only received 27 applications. Other visas in the temporary seasonal worker category are usally granted for six months. Currently it’s estimated there is a labour shortfall of around 100,000 lorry drivers – triggered by an exodus of foreign nationals during the pandemic, coupled with post-Brexit immigration rules, and self-isolation requirements. The huge number of driver vacancies has been compounded by more general labour shortages affecting meat packing and fruit picking jobs – jobs previously done by EU nationals ­– which have impacted stock levels in supermarkets and fast-food chains.

Mariam continued: “The retail industry warned the government that, unless it took immediate measures to alleviate an acute shortage of haulage drivers, significant disruption was inevitable in the run-up to the Christmas season. In our new post-Brexit world, it is likely we will see the same labour shortage issues occur in other industries, unless the UK Government ceases with its inherently hostile attitude towards immigration.”

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London reports lowest job vacancies with highest number of unemployed

The ONS’s most recently published labour market figures show that vacancy numbers have reached another record high with the number of payroll employees up by 207,000 having surpassed pre-pandemic levels. This is 122,000 higher than levels seen before the pandemic hit in February.

The UK’s employment rate increased by 0.5 percentage points last quarter to 75.3%, while the unemployment rate was down 0.4 percentage points to 4.5%.

The ONS stated that the number of job vacancies increased by 318,000, with all industry sectors above or equal to the levels seen between January to March last year, before the first lockdown.

Record vacancies may not be good news

According to analysis of job listings by Adzuna, people looking for work may not be in the right areas to fill them, with different regions facing different employment challenges. London is by far the worst place for workers to be in if looking for employment, with more people looking for work than jobs advertised. The capital city had 13.4% of over 16 unemployed or furloughed which was the highest in the country. Vacancies were 104% of what they were pre-pandemic, but this was the smallest growth nationally.

The opposite is true in Northern Ireland, where vacancies grew 154%, the second steepest in the country, but there are comparatively fewer people looking for work.

This location phenomenon could result in continuing crisis for businesses battling to find staff as the economy grows.

Pay increases on the rise but not enough to secure candidates

Growth in average total pay (including bonuses) was 7.2% and regular pay (excluding bonuses) was 6% among employees for the three months June to August 2021.

Darren Morgan, Director of Economic Statistics at the ONS commented: “The jobs market has continued to recover from the effects of the coronavirus. The latest earnings continue to show growth on the year, even after taking inflation into account. However, the figures are still being affected by special factors that make it hard to read underlying trends.”

Matthew Percival, Programme Director for Skills and Inclusion at the Confederation of British Industry, said: “Companies have found hiring difficult this autumn and the official data is beginning to tell the same story, with the number of people on payroll exceeding pre-COVID highs and record vacancies.

Responding to the ONS earnings and employment figures, Matt Weston, UK Managing Director of global recruitment firm Robert Half, said:

“We’re currently seeing demand above and beyond pre-pandemic levels, and despite the so-called ‘Great Resignation’ creating a tsunami of turnover, we are still experiencing a saturated market where the demand for skilled talent outstrips the supply. The competition is evident with the increase in median monthly pay showing the strength of candidates’ influence when agreeing terms with a new employer.”

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A new survey of 2,000 workers by Robert Walters has found that 75% of 18-25 year olds see the workplace as their number one source of meaning and social connection but 42% will quit if remote working isn’t an option.

Robert Walters’ Guide to Hybrid Working: Obstacles and Solutions claims that ‘the under-researched and under-tested new hybrid working model has resulted in the UK workforce feeling overworked and exhausted’.

It found that, while 63% of companies have adopted or are in the process of implementing a hybrid-work model, 40% of employees think their employer’s hybrid working arrangements need to be improved and 55% do not think it brings balance back to their home and work life – with many claiming that hastily constructed working models have led to more intense working days due to the need to fulfil both face-to-face and virtual meetings.

The report also found that many employees are still in the dark about their employer’s plans for post-pandemic working – with 40% stating they are yet to hear about any vision, and a further 28% claiming that what they’ve heard remains vague.

Workers are very clear about their expectations, with 85% of UK professionals wanting more flexibility as standard to work from home post-pandemic, 78% stating that they would not take on a new job until this was agreed upfront with their prospective employer, and 42% saying they would quit if their employer didn’t offer remote working options long term.

However, with recent studies finding that employees working mainly from home were less likely to receive a bonus, get promoted or receive training than colleagues who spent more time in the workplace, the report urged employers to invest in culture and management.

“Our research shows that the diminishing social capital accessible through the hybrid or fully working from home model could turn the younger staffers into a ‘flight risk’,” said Chris Poole, MD of Robert Walters UK. “Additionally, talent retention is at its highest levels when employers invest time and effort in building and maintaining a workplace culture that prioritises social capital for employees.”

Tactics for boosting productivity and loyalty with hybrid working in the report include the following:

  1. Upskill managers: Remember the adage, “Employees don’t quit jobs, they quit managers”. So, equip your managers with formal training and techniques to maintain productivity and innovation among their hybrid teams. The Robert Walters research suggests 30% of companies in Japan are already investing in such training.
  2. Measure outputs: Organisations are typically good at measuring inputs, but many overlook the outputs. By measuring outputs, employers and employees gain a clear picture of productivity and can adjust their hybrid working arrangements accordingly. This also helps ensure high achievers are identified and rewarded – which improves talent retention.
  3. Empower introverts: Some people feel more comfortable suggesting ideas online, rather than at in-person meetings. Apps such as Slack and Stormboard can enable brainstorming among remote workers.
  4. Seize the moment: Spontaneous creativity can still happen when people aren’t in the same room. Working in a Google Doc allows colleagues to create together, simultaneously. And leaving video chat running while working remotely allows people to share ideas and thoughts as they come up.
  5. Maximise in-person working: Optimise the time people spend together by creating flexible workplaces and spaces that encourage experimentation and collaboration. Consult your people during the office design, and your premises will become an asset that helps attract and retain talent.
  6. Embrace new technology: Keep your eye on emerging tech solutions. For example, Zoom plans to launch a new Smart Gallery feature, using AI to allow three people in a physical conference room to appear on different cameras, giving equal time and opportunity for all participants to contribute their ideas.

A copy of the report is available to download at Symptoms of Dysfunction in Hybrid Working (robertwalters.co.uk)

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Over half of satisfied workers are open to a career move, according to a new survey of over 4,000 workers in the UK, US, France, and China.

A new study from global integrated communications agency Zeno Group found that 58% of satisfied employees report being open to new opportunities, with many actively searching.

The study, entitled: “A New Mindset at Work: The Evolving Workplace in 2021”, is based on a survey of over 4,000 global workers from March to April this year which analysed employees’ expectations for the return to the office, their attitudes toward workplace mobility, and the importance of factors such as purpose, diversity, advancement and work-life balance through the lens of geographic regions and generations.

It found that workers are demanding a new working environment on their terms. Beyond hybrid work and flexibility, which are seen as permanent expectations for the new workplace, the study reveals that professional growth and career mobility rank high among employees’ expectations, followed by interesting work (77%), opportunities to grow (71%) and the ability to move within the company (62%).

Mental health was high on the agenda for 48% of UK employees, with 46% worried that poor mental health, or feeling more stressed or anxious, may come as a result of working remotely and 47% concerned it will lead to poor physical health.

The study also indicated how shifting employee values are shaping their views on the workplace. Out of 37 values, “protecting the family” (75%), enjoying life (72%) and self-reliance (71%) were the top three rising values in the UK while “status” (13%), “power” (12%) and “success” (11%) were the top declining values.

Across all regions, over 70% of employees say they would perform better at their jobs if they had a clear understanding of their company’s mission and values (a 21-point increase from a 2015 Zeno Group study) yet only around 50% of respondents felt their current company had one. Among US Gen Z respondents, 76% would be willing to accept a job earning less money if it was for an employer that shared their personal values and had a strong social purpose.

In the US, UK, and China, nearly 50% of employees consider having a diverse workforce and inclusive company culture one of the most important elements of a purposeful company.

“Senior management teams need to be actively listening to what their employees want and need,” said Jo Patterson, Managing Director at 3 Monkeys Zeno. “In the PR industry there is a particular need to practice what we preach when it comes to employee engagement post-COVID. This has been a watershed moment for all of us, and we now have an opportunity to build workplaces that align with the rising values highlighted in this report like mental health and flexible working.”

“While many businesses have great benefits and growth opportunities for their employees, often communication can prove the missing link between employers and their workforce,” added Jennifer Edwards, UK Employee Engagement lead at 3 Monkeys Zeno. “In the months ahead, retaining and attracting new talent will not only depend on listening to employees, but actively communicating with them in a meaningful way.”

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Concerns about prospects in the post-pandemic job market are driving more young people to stay in education and training despite talent shortages across a range of sectors.

Research from City & Guilds found that 40% of 17-19-year-olds in the last two years of school plan to go to university and 20% now want to stay in full time education for longer than they originally intended. This compares to 13% who say the same for apprenticeships, and 22% who plan to go straight into employment.

While 44% of school leavers choosing university consider this to be the best way to get a job, and 39% believe they will get paid well if they have a degree, recent research from Incomes Data Research found that both a graduate and a fully qualified degree-level apprentice could expect to earn the same salary upon completion of their qualification (£32,500).

Data from the ONS indicates that 37% of all graduates are unable to land graduate level jobs and data from City & Guilds Group’s Skills Index report (supported by the British Chambers of Commerce) suggests that only 18% of employers intend to recruit graduates to fill skills gaps in the next 12 months as businesses prioritise new recruits who are work-ready.

C&G’s report also found that employers are twice as likely to take on apprentices or trainees to fill skills gaps (36%), as opposed to graduates (18%).

“For many young people, the idea of university being the golden ticket to a great career is ingrained from an early age,” said Kirstie Donnelly, CEO of City & Guilds. “But as the jobs landscape continues to reel from the impact of Covid-19 and Brexit, it’s more important than ever before to understand that this isn’t the only option available to them.

“Ahead of results day, it’s important that young people understand the full range of options available to them and which types of jobs are likely to be available when they finish their studies. As part of this, we need to ensure that young people have access to robust and up to date careers advice that considers the genuine needs of the local labour market so they can make smarter choices about their career paths.”

Results anxiety

Research of 1,001 UK students aged 16-22 commissioned by FutureLearn in July found that 41% of young people are worried their exam results will have a lasting impact on their ability to get a job in the future; and 31% are worried bad exam results will impact their chances of earning enough money in the future.

It also found that 41% are worried they would not be able to get into university and 25% that they would not be able to get a job if their grades were not as they had hoped.

The research indicates that home life, not just school life, is affecting young people’s confidence levels with pressure from parents compounding a need to be seen as achieving by peers and virtual networks. Self-love is a top concern with 72% believing they would be disappointing themselves.

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The number of applicants per vacancy (APV) declined significantly across three key sectors in the first half of the year as vacancies have surged, according to data from Broadbean.

Across manufacturing and production, vacancies rose by 32%, while the APV was down 46%. Sectors experiencing the largest fall in applicant numbers were logistics & supply chain and retail, with the former seeing vacancies rise 85% and the AVP decreasing by 60%. The latter saw roles increase by 101% and applicant numbers dropped by 55% between quarter one and quarter two 2021.

Retail has been hit hardest by the so-called ‘pingdemic’, with large employers reporting that entire stores are being forced to shut because of staff needing to isolate.

“The fact that we are seeing applicant numbers fall and companies starting to really struggle to recruit is worrying and could hamper the UK’s ability to build back after the pandemic,” said Alex Fourlis, Managing Director at Broadbean Technology. “And while we expect applicant numbers to pick up once again in September after the usual summer lull, the next few weeks will prove a testing time for the employment market, particular given the huge numbers of people isolating.”

The latest Report on Jobs survey by the REC and KPMG showed that recruitment activity continued to rise sharply across the UK at the start of the third quarter, with permanent and temp billings both rising at near-record rates and starting salaries increasing at the quickest pace on record.

It found that that rising demand for staff as restrictions ended and a further marked drop in candidate supply have accelerated increases in permanent starting salaries, with the rate of salary inflation the sharpest seen in nearly 24 years of data collection. In contrast, temporary/contract staff hourly pay rates rose at the second-quickest rate since the survey began.

Overall, candidate numbers fell at the second-sharpest rate in the survey history, easing only slightly from June’s record, with Brexit cited as a key factor reducing the supply of workers, especially temporary staff.

“While companies want to invest in their business now that restrictions are lifting, demand for new staff still outstrips supply due to low candidate availability,” said Claire Warnes, Partner and Head of Education, Skills and Productivity at KPMG UK. “We know that reskilling and upskilling is needed to help people move between sectors, and there’s no doubt the ‘pingdemic’ has added an extra dimension to the recruitment challenge. Plus, with furlough due to end soon, there may be a downward pressure on pay to come.”

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Industry calls on HMRC to better enforce existing legislation to weed out non-compliant firms.

Frances O’Gradygeneral secretary of the Trades Union Congress (TUC), has called for a ban on the use of umbrella companies, saying: “Employers shouldn’t be able to wash their hands of any responsibility by farming out their duties to a long line of intermediaries … It’s time for ministers to ban umbrella companies, without delay.”

The TUC, which represents 5.5 million workers, estimates that half of all agency workers are employed through umbrella companies based on research it commissioned from the Low Incomes Tax Reform Group. It predicts a rise in the use of umbrellas to source agency workers fill post-pandemic talent shortages.

Clarke Bowles, Director of Strategic Sales at Parasol Group, commented: “After what I thought was a well written and balanced report from The Low Incomes Tax Reform Group (LITRG), it’s disappointing to see TUC still hold a view which in my opinion does nobody any good. Compliant and ethical providers, those who supported throughout furlough, those who ensure holiday pay is always paid are tarnished with the same brush as tax avoidance promoters and even fraudulent models.

“There is a place in the supply chain for compliant and ethical providers and many contractors choose to use an umbrella company for the benefits they receive, but I believe it is about contractor choice, regulation and enforcement.”

This view was echoed by Crawford Temple, CEO of Professional Passport, who said: “It is surprising to hear this call from Frances O’Grady as the Loan Charge APPG report commissioned by the TUC did not call for a ban. Whilst there is a lot of regulation already in place to address malpractice in the industry, a blanket ban is not the way forward and the call by the TUC serves to demonstrates a lack of understanding on how compliant umbrellas work to support workers.

“The Government needs to address the underlying issues and challenges that our industry faces as a matter of urgency, namely non-compliance, transparency and enforcement. Non-compliance is fuelled by the complexity of legislation currently in place. The lack of visible enforcement, the lengthy delays in taking any action, and targeting the workers for recovery all serve the interests of those seeking to circumvent, or disregard, the rules. HMRC holds all the data it needs to stamp out bad practice and it is simply not taking the proactive approach. This is where the real problem lies.”

Dave Chaplin, CEO of contracting authority ContractorCalculator adds: “Not surprisingly, the fraudsters aren’t scared by unenforced regulation – which is why some are happy to call for more of it – knowing that they can just carry on with limited (or no) oversight. Payroll transparency and monthly independent party auditing is where the market needs to head, and some are already leading the way on that.”

Phil Pluck, CEO of the FCSA, described the TUC’s call for a ban as ‘a knee jerk reaction to a sector that has come about through necessity’ adding that it is misguided in suggesting recruitment agencies be the provider of contingent labour.

“A contractor may move from contract to contract on almost a weekly basis with day rates for their work varying on each contract,” he explained. “Recruitment firms realised long ago that to have for example one thousand contractors on their books moving through thousands of variable rate contracts whilst actually being their employer was logistically impossible. The same contractors will then typically move from one umbrella to another around three times per annum.

“To employ a contingent worker through large numbers of contracts whilst also employing them whilst they are not actually working on a contract requires detailed knowledge in taxation, accountancy and employment law as well as a detailed understanding of highly complex software management systems. Recruitment companies are simply not equipped to properly manage and employ such a varying workforce. Hence the existence of umbrella firms. To simply suggest that umbrella firms be banned is not workable and ultimately will disadvantage the freelance worker.”

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A new survey reveals that 51% of remote workers now reply faster to emails to prove they’re working – and 95% of HR workers feel most trusted to be at their desks.

A survey of 1,015 office workers commissioned by Furniture At Work through Opinion Matters highlights changes to habits and routines as remote workers seek to reassure their employers that they’re working.

It found that 20% of UK workers now have Teams on their personal mobile phone and 29% ensure Teams never goes onto an ‘away’ status. It also found that 51% have started replying to messages faster to remind colleagues they’re working; 47% have been checking in regularly with calls and emails; and 49% now send emails either early in the morning or late at night.

The survey confirmed that 10am to 11am every day is the most common time for UK workers to take a break, with 22% doing this, and Monday is the day when workers are most likely to feel productive, with 24% saying this is the day when they get the most work done. Friday is the least productive day for 36%. However, those aged 16-24 chose Wednesday as their most productive day (26%), with 22% saying Monday was their least productive day.

A spokesperson for Furniture At Work said: “With so many extending their working days when working at home, it remains to be seen how this could translate into office working. It’s important for employers to understand that their staff are having to adapt to a second major change to their working lives in 18 months. Given that 11% of the workforce still don’t feel trusted by their employer to complete their set hours in a week, considering a flexible working policy could help make a smoother transition and reassure workers that you’re not rushing them back to a place where you can see them.”

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Talent shortages and new tech-enabled services have helped the world’s biggest recruiters to achieve significant revenue growth over the last six months.

Global recruitment firm Randstad reported revenue growth of 38.2% over the second quarter with Group revenue 3% up on Q2 2019. Permanent placements were up 91% year-on-year and up 1% on 2019. The firm showed continued market share gains in the USA and France with volume trends in early July indicating continued positive momentum.

“We welcomed more than 2,400 new colleagues to our global workforce,” said CEO Jacques van den Broek. “We are also continuing to roll out our global technology transformation, with Monster showing positive YoY momentum, and are excited to provide a better experience to both talent and employers using the combination of Randstad and Monster capabilities in the future.

“By providing in-depth data, technology and integrated services, we are playing an essential role for our clients by helping them to achieve a total talent management strategy.”

Announcing its Q2 financial results, Adecco Group posted a 20% increase in revenue. It was strongest in higher-value activities with permanent placements up by 88% with training, upskilling and reskilling up 78%. The Group’s gross profit increased by 39% organically, with substantial growth recorded in all Global Business Units.

Alain Dehaze, Adecco Group CEO, commented: “We have seen pockets of talent scarcity and wage inflation in our end-markets, particularly in technology solutions, and the pace of recovery in Permanent Placement is unprecedented. We are cautiously optimistic that all our service lines, including Flexible Placement, have scope to recover further in the quarters ahead. We are confident that with the implementation of our Future@Work strategy, including the digital transformation of our business, we will be optimally positioned to take market share”.

Robert Walters PLC reported a record first half performance, with an operating profit increase of 478% year-on-year to £24.1m. Recruitment activity levels across all professional disciplines accelerated through the first half of the year, with wage inflation returning as demand for talent outstrips supply. Growth is seen to be strongest across permanent and interim recruitment as candidate and client confidence levels improved while permanent recruitment now represents 67% (compared to 62% in 2020) of the Group’s net fee income.

International businesses now generate 79% of the Group’s net fee income with its largest region, Asia Pacific, now accounting for 45% (2020: 40 percent) of NFI

Robert Walters, Chief Executive, said: “It’s been a record first half performance with the Group delivering a four-fold increase in pre-tax profits year-on-year. Recruitment activity levels accelerated markedly as the first half of the year progressed, with the demand for talent outstripping supply across many markets and disciplines. A war for talent and significant wage inflation is beginning to emerge. I am delighted that we continue to be recognised as a leader in the ESG space; achieving carbon negative status and being shortlisted as a finalist in the ESG Reporting Awards.”

UK staffing firm Impellam Group plc reported revenues of £1.09bn for the six months ending 2 July 2021, an increase of 8.2% on 2020, as trading recovered in the US, UK and Europe regions. US and UK operations saw the strongest gross profit growth over the half year, up 13.3% and 9.9% respectively, while APAC is still impacted by COVID-19 and declined by 10.6%.

The Group reported a temporary recruitment gross profit increase of 6.8% and permanent recruitment up 33.7% – with perm now making up 10.6% of gross profit.

“Our H1 performance has surpassed expectations,” said Julia Robertson, CEO of Impellam. “With a simplified regional business structure and reduced management layers we have reacted quickly to changing end-market conditions and have made significant investments in digitalisation and new virtuoso fee earners whilst retaining the substantial cost base savings from the transformation of our business in 2020.”

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New research from City & Guilds Group reveals that 54% of employers say they can’t get the skilled workers they need, but only 14% would consider recruiting or retraining older workers.

C&G’s research found that adults aged 55+ are the least likely to have undertaken formal workplace training in the last five years, with only half (53%) having done so. This compares to 67% of 35–54-year-olds and 83% of 18–34-year-olds.

Over a third (38%) of respondents aged 55+ report having last received formal workplace training over 10 years ago, or never at all; 47% think they have all of the skills they need to succeed in the workplace; and 20% said the last workplace training they received was not useful for their current job day to day.

City & Guilds Group’s recent Skills Index report calls on employers to harness the valuable experience of older workers to fill skills gaps but only 14% of businesses said they would consider turning to recruiting or retraining older workers or retirees to tackle skills shortages.

Kirstie Donnelly MBE, CEO of City & Guilds Group, commented: “We are all living longer, healthier lives than previous generations, meaning more people will also need to work until they are at least 70 to ensure they have enough saved to retire. But we risk consigning a generation of valuable workers to the scrapheap, just when many industries are crying out for more workers post Brexit and as we unlock society after the pandemic.

Kevin Rowan, Head of Organising Services and Learning at the TUC added: “Access to learning opportunities are an important feature of good quality work and fulfilling lives, including maintaining good mental health. Older workers being disadvantaged or prevented from learning is both economically and socially damaging, short-sighted and counterproductive. We need genuine lifelong learning for all.”

Staff shortages threaten employer confidence in hiring

In the three months to June, employers’ confidence in their ability to hire new staff and make investment decisions rose to a net level of +33 – the highest level ever recorded by the Recruitment & Employment Confederation (REC)’s JobsOutlook survey, which began in mid-2016.

The REC’s latest survey also found that business confidence in the UK economy rose by six percentage points to net: +17. This is the second rolling quarter in a row the barometer has been in positive territory.

“But a number of factors including the ‘pingdemic’ are causing serious staff shortages now,” said Kate Shoesmith, Deputy CEO of the REC. “We have the opportunity to shift perceptions around flexible working once and for all and make it a positive option. Government and employers urgently need to join forces to create a skills system that delivers the staff the country needs.”

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