Category: Recruitment

85% are more likely to apply for jobs that disclose that information

According to a survey by ResumeBuilder.com, a majority of workers would demand to know the salary ranges for their jobs, with 88% saying they would demand to know the salary range if allowed under new salary transparency laws being enacted in some states.

The survey also found that 85% of workers said they are more likely to apply to job ads that list salary ranges. However, workers were split when it comes to what companies should be allowed when listing salary ranges. More than half, 58%, said companies should be able to list any salary range, no matter how wide, while 42% said salary ranges should have limits.

Stacie Haller, Career Counselor and Executive Recruiter at ResumeBuilder.com commented: “While applicants tend to favor companies that provide salary ranges in their job descriptions, displaying a very wide salary range does not help anyone. Companies that provide realistic and reasonable salary ranges can build trust with potential employees and attract more qualified candidates.”

Overall, 92% percent of American workers support salary transparency laws, according to the survey. Of supporters, 61% believe these laws will improve wage gaps, 58% believe they will make it easier for job applicants and 47% say they will boost transparency. However, 63% of respondents fear it will be problematic to know how much money their co-workers make.

The survey included 1,200 workers and was conducted online on Nov. 2.

 

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Mexican labor reform decreases agency work volume of business by 80%

The regulatory outlook for the staffing industry remains negative for the next six months in 13 countries, according to the World Employment Confederation’s recently released Staffing Executive Regulatory Outlook report. The impact changes in regulation are expected to be neutral in seven countries and positive in four.

Overall, the staffing industry anticipates regulatory changes to have a positive impact in the Netherlands, Spain, UK and Italy.

The report noted following the Mexican labor reform implemented in September 2021, agency work is no longer allowed in Mexico, decreasing the volume of business by 80% compared to the situation before the reform. However, agency work can continue operating in “specialized services” falling outside the core activity of the user company.

In Europe, the expected negative regulatory changes include:

  • A new regulation on the maximum length of an assignment in Sweden.
  • A new regulation on statutory sick pay and pensions in Ireland.
  • Discussions and possible regulation on the overall protection of agency workers covered by collective labor agreements in Germany, linked to the EU Court of Justice proceeding.
  • Discussions on the use of agency work in the healthcare sector in both Denmark and France.
  • A new law entering into force in Norway on maximum length of assignment and a regional ban in the construction sector.

The biannual poll includes responses from executives of 24 different national staffing federations. It was conducted in October.

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49% of contractor work coming from clients outside of the UK

New research by Cool Company, the digital payroll solution for contractors, has revealed the overall outlook for the contractor workforce sector is positive, despite the UK heading into a recession. The research found that just over three-fifths (61%) of contractors are feeling positive about contracting as a whole, with many working with overseas clients hoping to avoid the UK’s economic contraction.

The data revealed that contractors are looking beyond the UK to shore up client worries with an average of 49% of contractor work coming from clients outside of the UK in the last 12 months. 42% of contractors surveyed said that just more than half (51%) or more of their work currently comes from non-UK clients, while 55% of contractors expect that figure to increase in 2023.

Despite the confusion of IR35 reforms and then potential Off-Payroll legislation repeal, most contractors are now feeling more positive about the industry at home. Almost two-thirds (64%) of contractors surveyed believe that all clients will increase their use of contractors over the next 12 months and more than a quarter (26%) of contractors use recruitment agencies to source new clients.

Kris Simpson, Country Manager UK at Cool Company, commented: ‘2022 has been difficult for most people, with considerable economic and political uncertainty and coming on the back of last year’s IR35 reforms, it could potentially have caused significant difficulties for contractors.

‘The fact that contractors have found new ways of working, using umbrella companies and recruiters to connect with both British and overseas clients, testifies to the versatility of our contract workforce. So, although the UK’s economic outlook may be grim, I think there is some justification for the positivity currently found amongst contractors.’

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The company offers an alternative approach to the mainstream recruitment process

Celebrations abound in the Aberdeenshire recruitment agency, Grace May People, this week after being awarded ‘Best UK-wide IT and digital recruitment services at the 2022 Scottish Enterprise Awards

The company offers an alternative approach to the mainstream recruitment process by providing bespoke technology and executive services across a variety of roles in the tech space.

The awards are sponsored by the digital business magazine SME News and serve to recognise individuals and firms across Scotland for their innovation, excellence, and dedication to providing outstanding customer service.

Sasha Jaypalan, Company Founder and Director of Grace May People, said: “We’re delighted to have received this award. It’s a huge testament to the hard work and commitment of our small team. Recommendations from clients and candidates play a critical role in the growth of our company and since setting up in 2015, we’ve become the trusted recruitment partner for a number of major companies and achieved a 5-star rating with over 70 Google reviews from candidates. This is fantastic recognition of our efforts.”

Holly Blackwood, Awards Coordinator for Scottish Enterprise Awards commented: “Scotland is full of successful and innovative enterprises, and these awards help to highlight the diverse range of small and medium-sized businesses that continually demonstrate innovation and excellence in their chosen sector. Our team rewards individuals and firms based on customer excellence in their chosen industry, the standard of their products and their commitment to service – and Grace May’s testimonials and their distinctive approach really shone out as exemplary. Congratulations to their team!”

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National living wage increased

The wait for the much-anticipated Autumn budget is over. Millions are to pay more tax as the Chancellor cuts top-rate threshold in order to plug “black holes”. While saying he “tried to be fair”, disposable incomes are set to fall by 7.1% in real-term numbers – which equates to the lowest levels since records began in the mid-fifties.

Chancellor Jeremy Hunt declared he is increasing the national living wage by 9.7% next year, from £9.50 an hour for over-23s to £10.42. This represents an annual pay rise worth over £1,600 pounds to a full-time worker.

But what do the announcements mean for employers? Will businesses face backlash if they’re unable to pay the living wage? The u-turns and amendments could dramatically affect the contractor workforce.

Alexandra Farmer, Head of Team and Solicitor at  WorkNest commented: “With the rise in the National Living Wage mentioned in the budget, I expect a number of businesses will assess their workforce. Do they need all the employees they have? Can they make efficiencies to allow them to reduce the overall headcount? If so, we could be looking at an increase in redundancies over the next few months. It’s likely businesses will want these completed ahead of the rise in April to limit costs (i.e. redundancy payments and notice payments would otherwise be calculated using the higher rate of pay once it comes into effect).”

Unfortunately, it isn’t all good news for everyone.

Matt Fryer, MD of Brookson Group, a People2.0 Company commented: “This Autumn Statement and last month’s reversal of the measures announced in the Growth Plan mean that everyone is paying more tax, but this is especially true of contractors and the self-employed. Due to the structure of their businesses, independent contractors are particularly hit by today’s cut to dividend allowances and the previously announced increase in corporation tax rates.

“This is short-sighted. The economy needs flexible talent to support growth, including the infrastructure and energy independence projects that the Chancellor has prioritised. Contractors are available to work as and when their skills are required and the personal risks associated with this flexibility should be reflected in the tax system.

“Some may decide to seek permanent employment as a result of this budget, but contracting is not just about the money; it is a flexible lifestyle choice. If the Government is not going to incentivise the flexible workforce, businesses need to consider what else they can do to continue to make contracting an attractive option. This might include access to improved services or benefits, in compliance with the off-payroll working rules.”

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Tech and Telecoms challenged by migrations, inflation, and cost of labor

The ManpowerGroup Talent Solutions 2022 Total Workforce Index™ (TWI) has revealed the U.S., Singapore, and Canada as the highest-ranking labor markets across the globe for sourcing, hiring, and retaining talent. The ninth annual TWI report has analyzed more than 200 factors to evaluate skills availability, cost efficiency, regulation, and productivity. These findings were combined with big data and expert analysis to assess the workforce engagement of 69 global markets.

The current labor markets are characterized by intense competition for skilled workers, with 75% of companies globally reporting talent shortages and difficulty hiring — a 16-year high according to ManpowerGroup’s 2022 Talent Shortage Survey. This year’s revamped TWI places more emphasis on the impacts of remote work, the growing willingness and flexibility of employers to scale back education requirements and choosing to skill candidates on the job.

The ages of the workforce

There’s also heavier focus on the age of the workforce. As older workers leave the labor market, more companies are cultivating sustainable populations of talent by prioritizing the availability of large pools of Gen Z and millennial workers. Additionally, cost-of-living indices, wage inflation rates, and exchange rate volatility are new factors introduced into the TWI based on the significant impact of these issues on organizations and their workforces. This helps to provide a clearer picture of economic stability as companies make workforce mix and location decisions.

Dave McGonegal, Vice President of Talent Solutions Consulting & Advisory commented: “In a digital-first global economy, skilled talent is the new currency for business and economic growth. Organizations looking to separate from the pack turn to the Index to help them navigate change in real-time. This includes navigating new markets that will enable companies to compete for much-needed talent proactively and creatively, while still meeting business objectives. Companies need to become employers of choice, regardless of location, and factor in the needs most important to employees.”

When it comes to Technology and Telecommunications, organizations have been challenged by migrations, inflation, and cost of labor. This is causing them to heavily weigh a range of factors that contribute to long-term sustainability, productivity, and cost efficiency. In heavily regulated industries such as Pharmaceutical, Biotech, and Medical Device Manufacturing companies are finding challenges with cost efficiency and talent availability as specialized skill sets, certifications, and background checks are required for producing medical devices.

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Unemployment falls by 0.2%

According to the ONS’s latest labour market overview, the UK employment rate remained largely unchanged for July to September 2022 was 75.5%, and 1.1% lower than before the COVID-19 (December 2019 to February 2020). The data revealed that over the latest three-month period, the number of employees decreased, while self-employed workers increased.

Payrolled employees for October 2022 shows another monthly increase, up 74,000 on the revised September 2022 figures, to a record 29.8 million whilst the unemployment rate fell by 0.2% for July to September.

The big news of the week has been confirmed with the report stating that economic inactivity rate increased by 0.2% on the quarter to 21.6% in July to September 2022. During the latest three-month period, the increase in economic inactivity was driven by those who are long-term sick, who increased to a record high. In a recent article published by the ONS explored the economically inactive because of long-term sickness in more detail. It showed that over two-thirds of those becoming long-term sick in 2021 and 2022 were already economically inactive for another reason in the three months before interview.

Vacancies for August to October 2022, fell by 46,000 on the quarter to 1,225,000 but despite four consecutive quarterly falls, the number of vacancies remain at historically high levels. An increasing number of businesses are now reporting holding back recruitment because of economic pressures.

According to the report, growth in average total pay (including bonuses) was 6.0% and growth in regular pay (excluding bonuses) was 5.7% among employees in July to September 2022. This is the strongest growth in regular pay seen outside of the coronavirus pandemic period.

Average regular pay growth for the private sector was 6.6% in July to September 2022, and 2.2% for the public sector. Outside of the height of the coronavirus pandemic period, this is the largest growth seen for the private sector and the largest difference between the private sector and public sector.

In real terms (adjusted for inflation) over the year, total pay fell by 2.6% and regular pay fell by 2.7%. This is slightly smaller than the record fall in real regular pay reported in April to June 2022 (3.0%), but remains among the largest falls in growth since comparable records began in 2001.

Joanne Frew, Global Head of Employment & Pensions at DWF commented: “The latest ONS figures show a steady labour market despite the UK’s ongoing economic struggles. The UK economy is certainly facing a challenging period with soaring inflation and the Bank of England warning that the UK could be set for its longest recession since records began.  The Chancellor, Jeremy Hunt, is due to deliver his Autumn Statement on Thursday 17 November and has already warned that tax rises are necessary to help tackle inflation.  Against this backdrop it is likely that the labour market will face a relatively turbulent time.  Despite the ongoing resilience of the market during the pandemic, it is likely that the economic difficulties will lead to more job losses over the coming months.”

Bev White, CEO of Nash Squared said: “Despite Big Tech recently putting a freeze on their recruitment plans or even shedding jobs, today’s ONS jobs figures show that UK Tech continues to buck this global trend by adding a further 92,000 jobs over the last quarter, and firmly cementing itself as the UK’s standout private sector job creator over the last three years – with almost 350,000 additional jobs created.

“This performance is even more startling when you consider that we’ve lost over three quarters of a million private sector jobs over the same three-year period in the UK.

Despite the downturn, there is little sign of a tech slowdown. Tech investment in the UK is expected to hit its third highest level for more than 15 years and over half (56%) of digital leaders running tech departments in the UK plan to increase their technology headcount this year.”

Lauren Thomas, Glassdoor’s UK Economist also commented: “As news of tech layoffs spreads, Glassdoor’s data shows that employees are increasingly anxious with discussion of layoffs doubling and mentions of recession up tenfold from last October. Hiring has also taken a hit, with mentions of hiring freezes up more than 450 percent.

“However, this isn’t 2008. Unlike the Great Recession, the current shortage of workers is much more acute and even a potential recession would be unlikely to result in the same peak of unemployment as we saw then. There are reasons to be hopeful – vacancies are likely to remain higher and both redundancies and unemployment are lower than before the pandemic.”

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Package helps ex-soldiers embark on new career paths

Career support is now available to those who have served in the Armed Forces. The programme, launched by employment support specialist, Steps To Work, is designed to help ex-Armed Forces people to embark on new career paths.

The scheme is aimed at providing employment support for veterans, reservists, and cadets, and includes:

  • helping with job applications
  • CV building
  • interview techniques
  • access to training and development opportunities.

Bhanu Dhir, Chief Executive Officer at Steps To Work, said: “Our support package is one of the ways in which we want to offer our appreciation to those who have given so much to serve the country.

“We feel honoured to be able to give back to soldiers and their families in this way. Through our programme we will be able to share our specialist knowledge to help make a real difference in communities.

“Many soldiers have transferable skills that we believe many employers will find valuable and we look forward to being able to support them as they embark on life outside of the forces.”

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Lack of resources and leadership support stifles upskilling efforts

According to new research from O’Reilly, the demand for digitally skilled workers in UK vertical industries, including technology, finance, e-commerce, and retail, is outgrowing the level of digital skills available.

Despite this, only 51% of British companies within these industries are willing to spend more than £25,000 on recruitment and learning and development to boost skills such as cybersecurity, software architecture, and data analysis.

Three hundred HR decision-makers within the technology, finance, e-commerce, and retail industries were surveyed to find out which digital skills are most in demand. The research, conducted by Censuswide in September 2022, also looked at the potential barriers to upskilling staff.

The research found that 27% of the HR decision-makers believe their organisation faces the biggest lack of skilled workers in cybersecurity, followed by software architecture at 15%, and data analysis at 14%.

Yet, only 33% are willing to spend more than £10,000 on recruitment and L&D to hire cybersecurity talent. Seventy-one percent of organisations will spend no more than £10,000 on recruitment and L&D for data analysis, and 68% said the same about software architecture skills.

On the other hand, 32% of organisations are planning to spend £20,000 or more on recruitment for AI and ML and 31% on cloud. More than a quarter of organisations will spend up to or more than £20,000 on AI and ML (29%) and cloud (28%) L&D to upskill employees.

The research also found that over the next 12 months, organisations will spend an average of:

  • £13,962 on L&D for Gen Z
  • £13,608 for Millennials
  • £13,495 for Gen X

The majority (83%) of vertical industries plan to spend between £25,000 – £50,000 on overall recruitment for skilled tech vacancies over the next twelve months; however, only 78% will spend the same amount on tech-related L&D.

Looking at each sector, the research revealed that:

  • The technology sector is planning to spend an average of £33,676 on recruitment and £31,651 on L&D.
  • The finance sector will spend an average of £33,075 on recruitment and £31,400 on L&D.
  • The retail and e-commerce sector will spend an average of £29,275 on recruitment and £28,801 on L&D.

The research found that the biggest barriers to upskilling current employees are : Insufficient resources (21%); lack of internal personnel (19%); lack of internal buy-in (17%).

In the tech sector, 21% of organisations agreed that lack of leadership support is a key barrier to upskilling current employees. Conversely, across all industries combined, 58% of HR decision-makers said that they are ‘significantly’ supported by leadership when it comes to investment in tech-related L&D.

Alexia Pedersen, VP of EMEA at O’Reilly, commented: “It’s encouraging that 80% of companies within the UK’s tech, finance and retail sectors have increased investment for tech-related learning and development over the past three years. However, our data suggests that further investment is needed to recession-proof the UK’s vertical industries.”

“With the pound currently at a 37-year low against the dollar, now is the time for companies to deploy upskilling programmes alongside ongoing recruitment efforts. Likewise, employees should prioritise L&D to safeguard their role and make themselves an invaluable asset to their organisation. This will be key to creating a highly skilled workforce that keeps British businesses at the forefront of their industries globally.”

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Microsoft, Salesforce, Meta and Twitter make mass staff cuts

Big names in Big Tech are letting go of staff at what is said to be the most dramatic cull in tech sector history. Meta has laid off more than 11,000 employees thereby reducing its headcount by around 13 percent, while Microsoft announced at the end of October that it’s laying off around 1,000, with numbers still to be confirmed. Elon Musk led the charge, however, by laying off around half of its workforce when he took control of the social media platform on October 27. This, in a bid to run a financially healthier business by taking it private and enhancing his unilateral power as CEO.

Salesforce has joined the avalanche with an announcement of 2,500 redundancies in the US, with the jury still out on whether or not the mass layoffs will reach UK shores.

Meta, the social media giant, is battling falling revenues and rising competition despite reporting profits in excess of £23 billion. Chief Executive Mark Zuckerberg emailed employees on Wednesday morning informing them of the redundancies.

He said: “I want to take accountability for these decisions and for how we got here. I know this is tough for everyone, and I’m especially sorry to those impacted.” Zuckerberg said revenue growth experienced during the pandemic had not been sustained, ad performance was down, and ecommerce had declined, all in an environment of economic downturn.

He added: “[These factors] caused our revenue to be much lower than I’d expected. I got this wrong, and I take responsibility for that.” Despite drops in share prices and apprehension around Zuckerburg’s Metaverse development, he has said that investment in Real Labs will continue.

Why? the industry is asking. Since the pandemic, the tech industry has seen an explosion of use of and investment in tech, probably since Facebook’s arrival 18 years ago. The result of rising inflation and reduced revenue seem to be the main reasons for the slew of mass redundancies, even in the face of reporting massive revenue over the last year.

Ken Brotherston, TALiNT Partners CEO said: “First of all, it’s only the most dramatic cull in tech history if you’re under 40. The dot com reverse was quicker and deeper in percentage terms but, of course, that isn’t any comfort if you are one of the people affected. What might offer some succour however is that we still have a pretty robust employment market with a lot of the skills previously valued by these big tech firms still in high demand from lots of other employers.”

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