GDP results - what does this mean for UK recruitment?
What Greet Brosens, our Group Sales Director at Adecco Group UK & Ireland has to say
Last week saw a landmark moment for the UK economy; we returned to pre-crisis levels. The Office for National Statistics (ONS) reported economic growth of 0.8% in the second quarter of this year, contributing to the overall 3.1% annual growth in gross domestic product (GDP).
As I discussed on Sky News on Friday, the recruitment sector has truly felt this surge in economic momentum. The index for business services and finance increased by 1.3% in Q2 2014, following an increase of 0.9% in the previous quarter. The impressive GDP results, combined with an increase in business optimism, have driven growth across the recruitment sector, specifically in the professional jobs market. Whilst many employers have relied on contractors over recent years due to the changeable nature of the market, confidence to hire on a permanent basis is now returning. Growth in permanent headcount is indication of an increased willingness among employers and organisations to make a long-term investment in talent, which has led to growing demand for recruitment services. This surge is indicative of wider growth to come; organisations are looking to boost their headcount to cater for a buoyant workload.
We can now enter the second half of 2014 confident that this growth will continue. A side effect of this growth is however the persistent skills shortage. In a candidate-driven market, as companies look to secure the best talent in the marketplace and jobseekers/employees with in-demand skills find the balance of power increasingly in their hands as competition intensifies; organisations need to ensure they have robust talent attraction, management and retention strategies in place. It is now more important than ever for employers to work with both their existing employees and new recruits to cultivate clear career roadmaps, which include support structures such as mentoring, leadership training and development programmes.
What the GDP results have demonstrated is that the UK is ahead of the curve in regard to growth in comparison to other EU countries. However, if companies don’t take action to make sure they have access to the best talent pool, they risk falling behind in the global race for competitiveness. The only way to stay competitive is for companies to put into place concrete strategies to attract, develop and retain top talent.