The state of Recruitment for 2011
2010 has certainly proven to be a challenge for us all. The jobs market improved and the final quarter saw a sharp increase in contract employment. Things were starting to look up on the recruitment front. However the latest report published yesterday by the Recruitment and Employment Confederation paints a much bleaker picture for 2011.
The report found that only a fifth of businesses said they would take on new staff next year, nearly a third said they would grow their temporary workforce hinting that employers were still nervous about hiring permanent positions. 5% of employers said they were expecting to cut the size of their workforces in 2011, the survey of 600 reporters showed. A further two fifths of public sector organisations expect the cuts to have a “direct impact” on jobs, leading the REC to forecast that unemployment will rise from 2.5m to 2.65m by the middle of 2011.
The CIPD predict a 17 year high in unemployment; As many as 200,000 jobs could be shed in 2011 in what is predicted to be a “worse year for jobs” in 17 years, an analysis revealed. Raising fresh doubt over the pace of the UK’s economic recovery, a report by the Chartered Institute of Personnel and Development (CIPD) warned 80,000 private sector and 120,000 public sector jobs will be lost next year. Any jobs that are generated are likely to be part-time or temporary, while workers can expect to endure below-inflation pay rises of just 2%.
Totaljobs predicted recruitment to stall in 2011 and warn that competition for jobs will be increased as we struggle with external influences such as the VAT increase and instability in the European markets set to hit both employer and consumer confidence.
John Salt, director of Totaljobs.com, said: “We expect a contraction in job supply at the beginning of the year as businesses wait to see how the UK economy performs. However, although the labour market is likely to be uncertain in the first quarter in 2011, we see it recovering later in the year, with key service and support sectors such as sales and administration and PA roles leading the upturn.”
Employer challenges for Recruitment
So, with the imminent economic turbulence and predicted rise of unemployment, employers are faced with further challenges for recruitment. In such times, it may appear that employers will have a better pick of candidates and applications fly in by the dozens. However, employers are likely to shift their priorities and place greater influence on the quality rather than cost of candidates. With particular industries and sectors being hit, the talent pool may become flooded with candidates of a particular skill set, but in sectors such as Sales, it may be tougher to find the right caliber. Good sales people are likely to stay put and may consider moving roles risky in such an uncertain jobs market.
Employers should be set to invest in the training of good sales people and should be prepared to develop individuals and encourage loyalty to the organization in such times as it will become a very competitive landscape as employers move to attract and entice candidates from competitors.
As the In-House Recruitment Consultant at RSTO, a business process outsourcing organization based in Edinburgh’s vibrant Shore district, we are looking at our recruitment and training plans to prepare for a tough 2011. We are looking at how we can continue to attract top sales and technical talent to a rapidly growing organization.
2010 saw RSTO bring on new partners such as Amazon to add to the list alongside online heavy hitters Google and BT amongst others. We grew our workforce by 35% across all areas of the organisation and have successfully reduced our churn. Going into 2011 we expect similar growth and are in fact expanding our office space to accommodate all the new talent we hope to employ.
Over the year, we will be looking to grow our profile within the employer market and hope to raise our profile as a leading sales and Web Development recruiter in Scotland. We are hoping to launch into the graduate market and want to target leading sales professionals and offer second to none training and a long career in web and technical sales, Web Design, Web Development and a variety of Operational and Admin roles.
For information about current vacancies and RSTO, please visit www.rsto.co.uk













