Following the release of the 2023 UK jobs report this month, it’s clear that the hiring landscape continues to face mounting pressure. Published by the Office for National Statistics (ONS), here are some of the highlights from the recent official data release:
- Job vacancy numbers fell on the quarter for the 13th consecutive period in May to July, down by 6.0% from February to April
- The number of job vacancies in May to July was 1,020,000, a decrease of 66,000 from February to April
- Total vacancies were down by 256,000 from September 2022
- The unemployment rate was estimated at 4.3%, a rise of 0.5% from the previous quarter.
Whilst the pay in peoples’ pockets is on the rise, the number of people with a job is falling. It’s a contrasting environment that is being attributed to turbulent economic pressures and a shortfall in qualified and experienced workers.
The new ONS data aligns with recent findings from job board giant Reed, which revealed job listings on the site were down by almost a quarter in the three months to June compared to the same period the year before. As a whole, these statistics paint a concerning picture, ringing alarm bells for a worsening economy that could ultimately lead to a recession.
When we look at public practice accounting, we can see how the economic outlook is playing a big part in recruitment. We typically see two types of drivers when it comes to the hiring market:
Client driven: This is where the talented pool is saturated and there’s a high availability of candidates. This scenario would mean job vacancies could receive a wealth of applicants and the hiring firm would be able to pick the best from the bunch.
Candidate driven: A market that is candidate driven is what public practice has been facing in recent years, where there is a shortage of candidates. This results in firms competing to secure the cream of the crop but leaving many vacancies unfilled.
However, here at Public Practice Recruitment Ltd, we’re noticing a new concept that is changing the recruitment landscape.
Economically driven: This is where people don’t particularly want to move jobs, they just want to be paid the right money from their employers. This scenario is what we’re currently seeing more and more of, which is creating a tug of war environment where employees look for new opportunities as an attempt to secure a counteroffer from their employer.
This financially led market can perhaps be attributed as a lasting side effect of the pandemic, where jobs were cut, salaries were sliced, and career prospects vanished. Another result of this shift is the rise in job offers being declined. Candidates are looking for the full package and aren’t settling for offers that don’t cut the mustard.
There’s a variety of reasons why someone would turn down a job offer, from the pay and perks package not meeting the candidate’s expectations to a bad candidate experience during the interview stage.
With both the client and candidate scenarios, we often see compromise. Within a client driven environment, candidates might take a lower pay offer to secure a role with good progression opportunities for example. Whereas in a candidate focused landscape, firms might need to offer a higher salary to be a more attractive option for the right candidate.
What’s different with an economically driven market is a reluctance to compromise from both sides. Firms are holding tight purse strings and can’t necessarily afford to offer big packages to attract talent, whilst candidates don’t want to settle for a role that doesn’t provide good pay, modern benefits, and progression opportunities. For example, a key requirement for many is flexible or hybrid working and we’re seeing more and more candidates not willing to budge on this. In fact, a quarter of Brits say they would turn down their dream job if it meant they had to go into an office five days a week.
So, what’s the solution? That’s where we can help. As the experienced intermediary between candidates and accountancy practices, the PPR team can bring both sides to meet in the middle. It’s clear that the hiring crisis is set to continue and each year brings a new set of challenges into the mix, but don’t lose hope!
As specialists in public practice recruitment UK-wide, we’ve seen first-hand the challenges that face both firms and candidates. From working closely with forward-thinking firms that are eager to secure talent that will add real value to their teams, to helping standout candidates up and down the country find fantastic opportunities within practice, we know a thing or two about fighting through this hiring crisis.
We’ve covered a wide range of talking points around the hiring crisis, including supporting your team during the skills shortage, embracing the rise of flexible ways of working, and even shaking up traditional recruitment methods to widen the talent pool.
The team is also on hand to support your firm further, whether you have live roles you’re struggling to fill or you’re not sure what the right direction is for your recruitment needs. Don’t hesitate to contact us today.
Archived
