Falling unemployment prompts major rethink in HR strategy

The ONS announcement on unemployment falling to 6%, its lowest level since 2008, coincides with a widespread rethink in HR strategy, according to JMA MD Clive Jefferys.

"No great surprises there as 2014 has been notable for growing skills shortages right across the economy," he said. "It transpires that the active qualified candidate pool now is less than 500,000 people, lower than it ever was throughout the economic boom that ended in 2008.

"At every level, organisations are struggling to meet the headcount targets that underpin their growth strategy for next year. Whether they need more van drivers, production line workers, technical support, salespeople or CEOs, most companies have learnt that the UK is firmly a Seller's Market now."

Jefferys cited a survey of HR Directors commissioned by Robert Half, published on 15th December, which found that 56% are radically changing both their recruitment processes and the benefits on offer to attract talent.

"The battle for key hires in sales, marketing and technology has intensified to the point that hiring managers are being re-educated to act decisively," said Jefferys.

"With many positions remaining vacant for more than six months they are learning that they need to seize the opportunity presented by even single candidate applications.

"Benefits packages for new hires have gone up by average of 8% in response to competition, and this will also have ramifications for all staffing costs next year."

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