UK Recruitment Marketplace, From Sister Company Amplifi Talent
Billy McCarthy, Managing Director of Amplifi Talent
The UK recruitment market has remained consistent for the last 12-months in a number of aspects, despite the uncertainty in the UK economy – particularly in relation to whether we are in or out of recession, inflation vs interest rates, and the ever-increasing costs of doing business.
Whether there is a perceived upturn or a downturn in the UK economy, the skill shortages being experienced across multiple business segments is not materially changing. The ‘active candidate’ market i.e. those applying to vacancies and actively marketing themselves for opportunities remains slow for a number of reasons.
Uncertainty breeds hesitation, whilst individuals may be considering a career move, the constantly changing and inconsistent narrative in the UK press often creates doubt around the ‘what if’. By moving company, they may lose the ‘goodwill’ built up with their current employer over a number of years, and there is often a concern around ‘last in, first out’, particularly if they are a senior hire.
And whilst vacancy levels have dropped in Q1 2024 to 910,000 from a peak of 1.3M in May 2022, they are still well above the pre-pandemic high of 862,000 in Oct 2018. In the last 12-months vacancy levels peaked at 1.05M, so whilst there has been a drop, given the continuous skills shortage nothing has really changed from a candidate attraction perspective.
The reasons for seeking a move are predominantly being driven by the cost-of-living situation, uncertainty in their current companies, career progression, and preferred working patterns. There has been a noticeable shift away from remote working, being led as much by the employee as the employer, but there remains a desire for hybrid working – with the standard currently being 2 to 3 days per week in the office.
In short, the recruitment market remains candidate led, with package and working patterns increasingly the lead considerations. ‘Sideways’ financial moves are in-the-main rejected with applicants expecting a 10 – 15% uplift in base salary to move to a new company. Candidates are still best described as hesitant to move, albeit tightening personal finances has made them more aware of what’s out there, requiring reassurances and detailed background information on perspective new companies before agreeing to submit an application. At the point of resignation, there has been a noticeable increase in counter offers from current employers, given the high cost of replacing, so all-in-all the hiring process remains tricky for want of a better word!
To counter all of this, our advice would be to run a slick and consistent recruitment process, ensure your company branding is strong, and be clear in terms of what the opportunity is for the applicant, including full remuneration information from the outset. Potential candidates value clear and visible information and communication, it keeps them motivated and helps to reduce any concerns they may have regarding making a career move.
Amplifi Talent (www.amplifi-talent.com) specialises in finance and business intelligence recruitment. We currently have teams in Edinburgh and Belfast, from where we recruit across Scotland and the Island of Ireland. Our purpose is to bring the best talent together and enable people and companies to accelerate their growth. We offer permanent, interim, and fixed term recruitment services, acting for ambitious firms to find and hire professionals with the training, skills, and experience to help deliver strategic growth.
