Latest research shows that employers have managed to hire for their hard-to-fill vacancies by raising wages, but fewer plan to do this in the coming months.
The CIPD’s Labour Market Outlook revealed that 45% of UK employers report having vacancies that are hard to fill, and 65% anticipate problems filling vacancies in the next six months.
Just 27% (compared to 44% over the last six months) plan to raise wages in response to recruitment difficulties in the future, with the CIPD suggesting that this could be due to firms approaching their limit on this ‘quick win’ strategy, and will instead look to alternative options, such as upskilling people and flexible working, to attract and retain people.
Jonathan Boys, labour market economist for the CIPD, commented on the findings, “The prospect of bumper pay awards will take the edge off high inflation for some workers, but it will still be strongly felt by many people struggling with the rising cost of living. Our research also suggests that employers are running out of steam on their ability to increase pay any further, so they’re switching their focus to retention and keeping their existing workforce happy.”
Considering becoming an employee of Contractor Umbrella?
Give us a call on 01206 591 000 or email jaime.thorpe@contractorumbrella.com.
Email JaimeBoys added, “If the ability to award pay rises is limited, employers can look at the total employment offer. Financial wellbeing support can make a difference, as can revisiting the mix of benefits offered to make sure they work hard for employees, especially the lowest paid. This includes designing jobs that include ample flexible working options. A combination of pandemic induced re-evaluation and a tight labour market have pushed flexibility to the fore. Right now, it’s a candidate’s market and that means new recruits have more power to dictate the terms that work for them.
“After years of falling employer investment in training, it’s encouraging to see a renewed focus from employers on upskilling the existing workforce as part of efforts to address recruitment challenges. Reform of the apprenticeship levy could do even more to boost the latent appetite of employers for investing in training and development, as they could spend the levy in a way that best suits their training needs.”
To find out more about contracting please contact Amelia on 01206 591 000 or email amelia.bowlez@contractorumbrella.com.
Trusted by over 1,200 employees |