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UK's jobs market: 'power to the people' shift

It’s labour market focus week on Bdaily. Here, Erika Bannerman, sales and marketing director at Brook Street, shares her take on the current shift in ’power to the people.’

For several years now, UK businesses have suffered with financial constraints and recruitment freezes and not surprisingly, we have seen a number of news stories announcing business closures and job losses. Based on this, it would be easy to make an assumption that the UK has a large talent pool and readily available skills which businesses can easily access.

However, the exact opposite is true. What we are seeing is something that the CEO of the Recruitment & Employment Confederation recently described as ‘the emergence of a two-speed labour market’ where there are increasing skills shortages at the same time as persistent levels of unemployment. And if there is one thing that gives power to employees over employers, it’s a skills shortage.

In fact, Brook Street’s own research amongst over 1,000 workers across London shows that candidate optimism is increasing as workers realise what they are worth to their organisations. The study found that 79% of London employees are open to new job offers, while one in five are actively looking for a new job whilst already employed. Employees realise that their knowledge and abilities are crucial to their company’s performance which can make them curious about how much they might be valued by other businesses. The balance of power in the jobs market is tipping towards employees and this requires a paradigm shift in the way businesses think about their workforce and how they approach talent attraction and retention.

The research also found that a better offer elsewhere rather than dissatisfaction at the current workplace is what is most likely to make employees switch jobs. Almost two thirds of respondents (58%) said that they were satisfied in their current roles, yet less than 40% of workers see themselves working with the same employer in just twelve months’ time. These findings underline the fact that people expect more from their employers. Even though workers are saying that quality of life is more important than money (55%), financial incentives, such as better wage and promotion, are the main reason for accepting a new job. Businesses therefore need to be aware of what their competitors offer to employees and ensure that their key staff won’t be lured out of the door.

The current jobs market, despite the rise in unemployment, doesn’t provide employers with the specific skills they need, leading them to look for highly skilled talent within other businesses. It’s important that businesses take stock of this trend as it impacts not only their ability to attract staff but to retain key talent, skills and knowledge that they already have within their business.

For more from Labour Market Week, check out; Focus on STEM subjects will drive innovation; overcoming the UK skills gap; why recruiters need to search for the x-factor; recruitment among growing industries; Bdaily meets the labour market advisor; Adzuna’s market perceptions; the ripple affect: the need to invest in skills; the growing number of unemployed over 50s; have we got the right skills; Bdaily meets recruit Lawrence Mallinson; and early technology education will drive digital economy.

This was posted in Bdaily's Members' News section by Brook Street .