War for talent returns in U.K.

Three-quarters of employers cite increase in unsuitable candidates: Survey

Employers in the United Kingdom are being inundated with unsuitable candidates and struggling to fill vacancies while talented individuals are staying put, according to the annual Resourcing and Talent Planning report by the Chartered Institute of Personnel and Development (CIPD), in partnership with Hays.

Three-quarters (73 per cent) of organizations highlighted an increase in the number of unsuitable candidates for job vacancies, fuelled by high levels of unemployment. However, 52 per cent of the 626 employers surveyed believe competition for talent is even greater, compared to 41 per cent and 20 per cent in 2010 and 2009 respectively.

This year, 75 per cent of organizations experienced recruitment difficulties. As in previous years, the main reason is a lack of necessary specialist or technical skills (72 per cent compared to 67 per cent in 2010), with managers or professionals and technical positions the most difficult to fill.

"High levels of unemployment have boosted quantity but employers are still struggling with quality. Headlines focus on high levels of unemployment but those stark statistics mask an ongoing struggle for employers to find the skills and experience they need to drive their businesses forward. Shortages of specialist and technical skills run the risk of slamming an unwelcome brake on the long-term competitiveness of the U.K. economy,” said Claire McCartney, resourcing and talent planning adviser at CIPD.

One contributing factor to the talent shortage is those who are in work are reluctant to leave in a volatile market, said CIPD. The median turnover rate has remained consistently low throughout the recession and beyond (2011: 12.5 per cent; 2010: 13.5 per cent; 2009: 15.7 per cent; 2008:17.3 per cent).

The rate of voluntary leavers has increased slightly in the private sector (8.7 per cent in 2011 compared to 7.4 per cent in 2010) but decreased in the voluntary (seven per cent per cent in 2011 compared to 10.2 per cent in 2010) and public sector services (3.4 per cent in 2011 compared to 5.8 per cent in 2010).

"Skills shortages are undoubtedly being exacerbated by 'grass is greener on this side of the fence' syndrome. Free movement of talented individuals is being impeded by a reluctance to voluntarily change jobs in volatile economic times — and the problem is worse now than it was at the height of the recession,” said McCartney. “With more cuts in the public sector expected and only marginal private sector growth, we expect a continued 'safety first' approach from employees, with many wanting to stay put for the next couple of years at least, making it difficult for employers to really drive competitive edge through the recruitment of talented individuals."

Four in 10 (39 per cent) employers also cite increased tuition fees as a concern. Respondents are worried this will affect the number of graduates coming into the labour market, affecting their access to yet another talent pool.

"The rate of youth unemployment continues to soar but employers are still complaining about the lack of talent on the market. It's crucial for organizations to communicate not only what skills they need now and in the future but also really sell themselves as an employer of choice in order to secure their talent pipeline in years to come,” said Julie Waddicor, managing director of Hays Human Resources. “Equally, with university fees increasing, there is a real need for more to be done to encourage businesses to take on apprentices and introduce other initiatives to help young people gain experience in the workplace. Only then will U.K. organizations really succeed in closing the skills gap."


 

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