The UK job market has been somewhat unstable over the past few months as businesses have faced the impossible challenge of predicting what the future of the UK economy will look like.
Vacancy numbers have reached record highs this year and we’ve seen fewer people actively looking for work. This has heated up the competition for talent among businesses who see skill shortages as a critical challenge. Contributing to these skill shortages are:
The UK’s inflation rate is a big concern for many and almost half (48%) of workers say their pay has not increased as a result, meaning salaries are having to stretch further. To combat the cost-of-living crisis, over a third of UK workers are considering changing jobs to gain a better salary. This poses both recruitment opportunities and retention challenges for employers.
Benchmarking salaries is key for both recruiting and retaining talent. Over half (52%) of those considering changing jobs would be encouraged to stay if offered a pay rise in line with inflation. However, this is a concern for employers with 17% of businesses citing the inability to offer competitive salaries as a barrier they will face in 2023.
Employers may want to consider:
While vacancy numbers are tapering off across all sectors because of the current economic climate, the competition for talent is tough. Interviewers should aim to give their candidates a good experience if they want to have the pick of the best talent and this means delivering an excellent sales pitch. Good people won’t be short of offers at the moment, so it’s down to you to make sure they choose your company.