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Employers want to hire, but workers want more

  • UK

Employers advised to revisit their skills requirements and train people on the job

The UK labour market is looking buoyant with the Net Employment Outlook rising to +21%. The latest number is up two 2% since last quarter but down 10% on Q2 2022. This is according to the latest ManpowerGroup Employment Outlook Survey.

With record low unemployment and a historically tight labour market, employers are still struggling to attract skilled talent. In response, workers can’t find employers that fit their pay and skills needs. ManpowerGroup suggests that employers revisit their essential skills requirements and consider what can be learned on the job.

In the ManpowerGroup Employment Outlook Survey, 2,020 UK employers were questioned about whether they intend to hire additional workers, maintain their current headcount, or reduce the size of their workforce in the next quarter (April to June 2023). The survey is a key economic indicator by the Bank of England and the UK Government.

The report revealed that employers across all sectors are planning to increase headcount. The IT sector tops the list, with a Net Employment Outlook of +48%, an increase of 14% from last quarter and 8% up on Q2 2022. The figures for the IT industry are more than twice the national average Net Employment Outlook.

Next on the list are:

  • Communication Services (+36%)
  • Transport, Logistics, and Automotive (+27%)
  • Financials & Real Estate (+27%)

Regionally, East Midlands is in the lead with a Net Employment Outlook of +29%, up 23% from last quarter, followed by the South West (+26%) and London (+24%).

Chris Gray, Director at ManpowerGroup UK, commented: “Our survey continues to show strong hiring intentions despite the economic climate, but hiring intentions are not translating into filled vacancies.”

 “There is a mismatch between what workers want and what employers are offering. Employers across the country are still keen to take on new talent, and workers want to take on higher paying roles with greater development opportunities. However, they aren’t seeing these jobs advertised. Job descriptions are going unread because they aren’t offering the skills growth workers want. Employers need to be clear about the progression opportunities and the training they are providing.”

“In a time of economic uncertainty and a cost-of-living crisis, we’re seeing that existing employees are reticent to move to new jobs and would rather take on more over-time or a second or third job to make ends meet and continue to develop. We have to be looking to bring those inactive back into the workplace and this requires structural changes to make this a realistic option. Government has an opportunity in this week’s Budget to help make this happen – an improved childcare offer and support for over 50s and long term sick could make a real difference.”

“Demand for highly-skilled tech talent continues to grow and we see this across all sectors. This growth is positive for workers, as businesses continue to deliver today while transforming for the workplace of tomorrow. This growth has a knock-on effect as new and different roles emerge, from project and change managers to newly skilled production workers. The opportunities are numerous as British industry works on future-proofing itself. To meet the demand, employers must re-evaluate what is essential and what is desirable in a candidate, and consider whether the role could be filled with a candidate who is 60 to 70 per cent fit for the role, and could be trained for the future.”

 “We are encouraged to see demand for workers the length and breadth of the UK – employers in all regions plan to expand headcounts. This is true especially of the East Midlands, which has seen hiring optimism surge since last quarter. Our insights tell us that a great deal of this demand stems from small and medium sized businesses which continue their optimistic streak in the region.”

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Over 97% of UK companies failing to adequately support women in the workplace

  • UK

Fewer than 3% of job ads on offer in March offer support to women

According to new research from Adzuna, UK employers are failing to prioritise supporting women in the workplace, with fewer than 3% offering benefits necessary to help them thrive.

Adzuna analysed over a million job ads advertised in March 2023 which revealed the number of postings promoting perks aimed at women – and the dire need for employers to step up.

Overall, only 29,501 of the 1,043,451 job ads available cited perks aimed at retaining women in the workplace and supporting them to thrive. Only 17,638 ads promoted enhanced maternity or parental leave, and just 6,410 postings offered some kind of support with childcare costs (including on-site daycare or backup childcare).

Despite recent evidence showing 1 in 10 women aged 45-55 leave the workforce due to symptoms of the menopause, only 821 job ads mention menopause support, and of those just 30 postings are offering paid HRT therapy.

Only five UK job ads offered menstrual leave. Research by YouGov has found nearly half of Brits are in favour of the introduction of menstrual leave legislation, and 40% of women said they regularly get period pain bad enough that it affects their ability to work. Some countries are waking up to the huge negative impact this has on women in the workplace: Spain has recently introduced legislation allowing three days per month of state-paid for menstrual leave for those with incapacitating periods.

Fertility benefits such as egg freezing and IVF support are also rare, with just 51 job ads mentioning these types of perks. LinkedIn was one of the first companies to offer UK its staff these benefits, covering up to £21,000 towards IVF (around £5,000 per cycle) or adoption costs from 2019, and following in the steps of Facebook, Google and Apple in the US. But with hiring in large tech companies currently depressed, women seeking employers offering fertility benefits are facing limited options.

Other popular perks found by Adzuna included duvet days (619 job ads), unlimited holiday (953 ads) and free gym membership (3,912 ads) continue to be offered by many employers.

Paul Lewis, Chief Customer Officer at job search engine Adzuna, comments: “Women remain woefully undersupported in the UK workplace. Instead of duvet days or free gym membership, employers need to focus on benefits that support female employees. In particular, evidence shows menopause and menstruation are top factors making it harder for women to thrive at work, even leading many to drop out of the workforce. Women shouldn’t need to suffer in silence; employers need to step up, introduce open dialogues around these topics and add more flexibility for women juggling their health with work. Furthermore, keeping women in the workplace is key to filling skill gaps, so introducing benefits that help attract, support and ultimately retain women makes sense from a business as well as a societal perspective.”

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Solicitors welcome steps towards compassionate leave during divorce

  • UK

90% of respondents said separation affected their ability to work

Solicitors at Kent law firm Furley Page have welcomed a new initiative by the Positive Parenting Alliance that could see employees being offered compassionate leave from work to deal with the breakdown of their marriage or relationship.

The Positive Parenting Alliance (PPA) initiative urges employers to treat a separation as seriously as other major life events, and is encouraging employers to implement policies specifically aimed at supporting those going through divorce or separation. Asda, Metro Bank, NatWest, PwC, Tesco, Unilever and Vodafone are among a group of major businesses that have already signed up to offer more support.

Josie Triffitt, a Solicitor with Furley Page’s Family team, commented: “It is widely recognised that a separation or divorce can be akin to a bereavement, so the PPA’s new initiative is an important step towards getting employers to acknowledge the impact of relationship breakdown on their employees.

“Anyone who has gone through a separation or divorce will know that it is often a difficult, complex and stressful time and for many who are working during this period, it can understandably have an impact on their performance, especially when the parties are dealing with the settlement financial matters or arrangements for their children.”

In a recent survey by the Positive Parenting Alliance, 90% of respondents stated that separation affected their ability to work and 95% said that their mental health was adversely affected, while more than half of the workers feared they could lose their job or thought about resigning. However, only 9% of employees said that their employers had a specific policy for separation and divorce.

Solicitor Eleanor Rogers, from Furley Page’s Employment law team, said: “In the absence of any such policy, the way that a separating or divorcing individual is treated will depend on their line manager’s approach, which may mean that employees are not treated consistently. Furthermore, in this world of hybrid working, issues such as mental health and wellbeing can be harder to spot.

“Employers can have a huge influence by ensuring that their employees feel supported, which in turn supports productivity and staff retention. The PPA’s new initiative is a positive step in the right direction, and going forward it is going to become more important for employers to put meaningful policies in place to provide assistance and support to staff as they cope with the impact of issues like separation or divorce.”

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Apprenticeship programs becoming more popular alternative to college

Young adults are rethinking the value of college 

Amid the heightened demand for workers, rising cost of tuition and growing student loan burden, more would-be students are choosing career-connected pathways over four-year colleges, according to recent reports. 

As enrollment falls, alternatives such as apprenticeship programs are quietly gaining steam, particularly for families anticipating the sticker shock of a college education, which currently averages around $53,430, including tuition, fees and room and board, at private colleges and $40,550 at public colleges for the 2022-23 school year, according to the College Board. 

Hafeez Lakhani, Founder and President of Lakhani Coaching in New York commented: “We are a societal turning point. People at the margin are saying ‘I don’t know if I can wait four years to make a living.’” 

Some experts say the value of a bachelor’s degree is fading and more emphasis should be directed toward career training. A growing number of companies, including many in tech, are also dropping degree requirements for many middle-skill and even higher-skill roles. 

However, earning a degree is almost always worthwhile, according to “The College Payoff,” a report from the Georgetown University Center on Education and the Workforce. 

Bachelor’s degree holders generally earn 84% more than those with just a high school diploma, the report said — and the higher the level of educational attainment, the larger the payoff. 

Apprenticeships are on the rise 

In an apprenticeship program, a company generally trains a student in one skill for a specific field. That often leads to a job, sidestepping the traditional college path — and costs. 

Over a decade, the number of registered apprentices rose 64%, according to the latest data from the U.S. Department of Labor.

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Number of payrolled employees up by 102, 000 according to ONS

  • UK

UK narrowly avoids recession again

According to the ONS latest labour market report, the UK employment rate was estimated at 75.6% in October to December 2022. That equates to increase in employment of 0.2%. The increase in employment over the latest three-month period is said to have been driven by part-time workers.

The report has revealed that the number of payrolled employees for January 2023 has also increased. It’s up 102,000 on the revised December 2022 figures, to 30 million.

The unemployment rate for October to December 2022 has however, increased by 0.1% on the quarter, to 3.7%. This figure is driven by people aged 16 to 24 years. Those unemployed for over six, and up to 12, months also increased, while those unemployed for over 12 months decreased in the recent period.

Talk of a recession has dominated the news but the latest figures show that the economic inactivity rate decreased by 0.3% on the quarter, to 21.4% in October to December 2022.

The ONS has stated that flows estimates between July to September 2022 and October to December 2022 show that there was a record-high net flow out of economic inactivity, driven by people moving from economic inactivity to employment. This is great news for the labour market as job posts, although decreasing online, remain at record highs.

In November 2022 to January 2023, the estimated number of vacancies fell by 76,000 on the quarter to 1,134,000, the seventh consecutive quarterly fall since May to July 2022. The fall in the number of vacancies reflects uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment.

Growth in average total pay (including bonuses) was 5.9% and growth in regular pay (excluding bonuses) was 6.7% among employees in October to December 2022. For regular pay, this is the strongest growth rate seen outside of the coronavirus (COVID-19) pandemic period. Average regular pay growth for the private sector was 7.3% in October to December 2022, and 4.2% for the public sector; outside of the height of the coronavirus pandemic period, this is the largest growth rate seen for the private sector.

In real terms (adjusted for inflation), growth in total and regular pay fell on the year in October to December 2022, by 3.1% for total pay and by 2.5 for regular pay. This is smaller than the record fall in real total pay seen in February to April 2009 (4.5%), but remains among the largest falls in growth since comparable records began in 2001.

James Reed, Chairman, Reed.co.uk, commented: “The job market remains healthy despite talk of Britain only narrowly avoiding a recession. A key factor driving the boost in job applications that we are seeing is the cost-of-living crisis. People are recognising that one way in which they can secure a pay rise is to move jobs.

“Interestingly, while wage growth remains stable across the jobs market, it is blue-collar roles; jobs that cannot afford such flexibility with remote working, that are seeing the biggest growth in pay. This January, comparing year-on-year, it is customer service and engineering roles that have experienced the most significant pay hikes – up 9.8% and 7.8%, respectively.

“This trend suggests an ‘in-person premium’ when it comes to pay – with organisations having to boost salaries to attract people to roles that cannot provide the flexibility now associated with the white-collar market.”

 Chris Gray, ManpowerGroup UK Director, said: “The UK labour market continues to be very tight and also very resilient. Employers are for now shrugging off the concerns of an economic slowdown but for those looking to hire it remains very tough. Job vacancy levels remain high at around 1.1 million although having reduced a little over the month which points to a slight cooling in demand.

“Pressures on household spending show little sign of easing up – regular pay has fallen by 2.5% when taking inflation into account returning a wage growth average of 6.7% and will be front of mind for both employers and workers alike.

“We’ve heard The Chancellor already outline plans to encourage more over 50s back into the workforce. Money and costs may be a motivator for some over 50s but social stigma also presents a challenge for many within this age group. We have to create the right working environment to overcome some of these issues with more flexibility offered and ensure that employers are listened to, and better accommodate, the needs of this demographic in the workplace. It’s a particularly complex area and there is no silver bullet, but employers and government must work closely together to find the best solutions.”

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Offices in need of a mid-life MOT

Time to rethink strategies to get over 50’s back to the office

With skills shortages still impacting the economy, the government is pushing ahead with plans to get over 50s back to the office through a ‘midlife MOT’.  This drive, however, is likely to hit roadblocks unless workplaces go through an MOT, too, warns workplace creation business, Unispace.

Unispace believes that workplaces are not aiding this demographic’s attraction and retention.

In a study of 3,000 office workers across Europe, Unispace discovered that 78% of those over the age of 45 would make significant improvements to the office environment. Access to free lunches (67%) and enhanced amenities (57%) were on top of the list from this demographic.

A further 45% agreed that they missed the social aspects of working in an office. The findings indicate that to encourage more over 50s back into work, businesses will need to rethink how the entire workforce uses the office to create the social environment that many in the older demographic desire.

Lawrence Mohiuddine, CEO, EMEA at Unispace commented: “With skills shortages still impacting the UK despite the tough economic climate, the plans to encourage those who retired early back into work is a move that many will welcome. However, we cannot overlook the fact that there are reasons why those that fall into this group left in the first place. While the current ‘MOT’ plans are focused on re-engaging the over 50s, the role that the office itself plays is crucial. The older segment of the workforce places a clear value on more from the workplace than just having a location to work from.

“While the older workforce clearly values better amenities in the office, it is the social interaction element that today’s firms can ill-afford to ignore. The ability to socialise with peers is a big driver for this age group, but in order to provide this for returning retirees, firms need to encourage others to also make greater use of the workplace. How we all interact with the office has evolved significantly in a short space of time and if they are to be truly used as the valuable attraction and retention tool that they should be, workspaces need their own MOT.”

 

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Apple cuts down on job postings

A conservative hiring strategy emerges for tech giant  

New research from data and analytics company, GlobalData, has revealed that Apple is adopting a conservative hiring strategy. According to the research, the tech giant cut down job postings by 11% last year.

While so many tech companies have announced layoffs, Apple Inc (Apple) is proving to be the exception, with its conservative hiring strategy.

Looking at global figures, Apple’s job postings in China declined by 30% in 2022. The US registered an 8% decline. On the other hand, markets in Taiwan, Mexico, Switzerland, Turkey, and Sweden witnessed growth in job postings.

GlobalData’s Job Analytics Database showed that Apple’s focus areas include artificial intelligence, machine learning, automation, sales, wireless systems, 4G/5G/6G, and iOS/android. In addition, several job postings also revealed that Apple is focusing on improving its supply chain.

Sherla Sriprada, Business Fundamentals Analyst at GlobalData, comments: “Apple has not announced any layoffs recently but is being selective in its hiring process with focus on key areas and geographies, which can be attributed to various factors such as its financial performance and strategic priorities. In contrast, Alphabet Inc (Google), which announced layoffs in January 2023, had its job postings increase by 13% in 2022 over 2021.”

 “Apple has a reputation for prioritizing its employees. As a result, layoffs may not be seen as the preferred solution for the company, even in times of economic uncertainty. The company may have decided to prioritize investment in research and development, or to focus on expanding its product offerings, rather than cutting costs through layoffs.”

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Rethink recruitment in 2023

  • UK

Recruitment strategies to attract the best talent

Even with the expected business slowdown in the coming months, recruiting employees with the right skills will be more challenging than ever. This is according to a new guide from global recruitment firm Monster.

Recent research from Monster has revealed that 87% of UK companies plan to hire in 2023; however, good employees are becoming harder to find.  A further 81% of organisations struggle to find candidates with the skills they need.

To overcome this, Monster suggests a policy of proactively hiring, by communicating differently, across the entire ‘candidate life cycle’.

  • General awareness
  • Passive search
  • Active search
  • Application
  • Onboarding

Employer branding helps to build a ‘good reputation’ before candidates consider changing jobs, helping to keep them front of mind when candidates are triggered to seek new work.

Organisations also need to develop and maintain a good careers site to attract candidates in the ‘active search’ phase. The career portal should include information that candidates want to know before joining, including company values and culture.

With 70% of job applications in 2021 completed on a mobile device, the application process must be straightforward and optimised for the appropriate platform.

The guide suggests a multi-channel approach to highlight the availability of jobs.  Effective use of social media is essential to the recruitment strategy, considering that 57% of job seekers use social media to research a potential employer.

Current employees should also be considered in the hiring strategy. The guide suggests that an effective candidate retention strategy will lower hiring costs. The strategy should include the following:

  • a feedback loop, providing actionable feedback to employees
  • a referral programme
  • skills analysis, including understanding current employees’ skills before recruiting externally.

Claire Barnes, Chief Human Capital Officer at Monster, commented: “Recruiters need to engage with talent whenever and wherever they can find it – online, offline, in-person or remotely.  It’s important to present a compelling proposition including consistently and constantly building brand awareness of a kind that appeals to candidates at every stage of the job seeker journey. The entire user experience from research to job offer must be a very positive one.”

Download the Always Be Recruiting guide at https://learnmore.monster.com/UK_always_be_recruiting

 

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Tech giant announces that they’re open to unionization

Is a collaborative approach with employees the answer to labour issues?

With public unionization movements taking place at various Big Tech companies, Microsoft wasn’t to be left out. The tech giant announced last week that it planned to follow an “open and constructive approach” to union organization from its employees.

In their announcement on June 2, 2002, they emphasized that while it wasn’t a requirement for employees to form a union to engage with company leadership, employees have the legal right to create a union.

The company outlined four principles to guide their open attitude to unionization. Among these were that they were “committed to creative and collaborative approaches with unions when employees wish to exercise their rights and Microsoft is presented with a specific unionization proposal.”

Microsoft is currently acquiring Activision Blizzard in an all-cash transaction valued at $68.7 billion. This announcement comes on the back of a vote taken at the end of May by an Activision Blizzard subsidiary to form a union.

Right now, the tech industry seems to be lit up by unionization efforts, with Amazon in a heated battle against unionization at some of its facilities, including in New York and Alabama.

In this post-pandemic world, worker power appears to be on the rise in companies across the US, with unions seeing increased activity in numerous sectors. The retail industry is just one example, with Starbucks and REI, where a number of strikes broke out late in 2021.

In what is known as #striketober, workers made demands for improved benefits, including better pay, flexible hours and more time off.

When it comes to unhappy staff, prevention is better than cure. One solution to staving off strike action would be listening to and acting on employee feedback. A Perceptyx survey released in April revealed that employers who did this were 11 times for likely to retain staff than those who didn’t.

Interestingly, fewer employers in the healthcare and retail industries were “listening to employees” than in other industries. These industries have also faced strike and unionization activities, high staff turnover and labour shortages.

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One in five fear online background checks by employers

45% believe that employers should not do social media checks 

According to new research, job seekers in the UK and Ireland are concerned about social media background checks. The research from HR and payroll specialists Zellis revealed that 19% of job applicants hide their social media activity in order to pass background checks.

The research was carried out in May 2022 amongst recent job applicants and showed that job seekers across all age groups are concerned that their online activity may lead to missed employment opportunities.

Reports state that 70% of organisations perform background checks on applicants’ social media; however, many applicants do not understand the reasons for these checks. Online background checks are a tool to pick up risk factors, for example, discriminatory language or undisclosed criminal behaviour. On the other hand, it can also highlight positive attributes such as charity work or volunteering.

The research indicates that  45% of respondents believe that organisations should not carry out these checks. Many respondents feared that the company might be looking for too much information. Nine percent thought that social media checks could uncover confidential medical history. A further 12% felt that it could reveal characteristics such as age or sexuality.

The research also found that 27% lied in a job interview about experience or qualifications. Twenty-two percent of these said that not having the right experience for the job was their biggest concern when interviewing for roles.

Ian Howard, Co-Founder of Neotas, commented: “It’s a common misconception that social media searches are used to somehow illegitimately access or hack personal accounts, when in reality they are only used to retrieve publicly available information about a job applicant.”

“Social media background checks are now a vital tool for hirers, helping to review a candidate’s attitude, as well as aptitude, for the role they’re applying for. As a company, Neotas prides itself on helping organisations to understand potential employees better by empowering them to carry out AI driven background checks which help to identify red flags whilst maintaining the personal privacy of job applicants.”

David Crewe, Customer Operations Director at Zellis, said: “The job market has never been as competitive as it is today, but that doesn’t mean hirers can get complacent. Background checks should be commonplace for any organisation, but that doesn’t mean they shouldn’t be mindful about how they feel for candidates.”

“It is crucial to offer candidates reassurance about the process, particularly the steps being taken to eliminate unconscious bias, or information about protected characteristics which should never be used in the hiring process. Background checking is not about catching applicants out or looking into their personal life, but rather about building confidence for the best candidates and ensuring a safe, accepting and positive workplace.”

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