With a high employment rate (75.6%), low unemployment (3.9%), and candidates changing jobs in record numbers, British companies face a perfect storm when it comes to hiring and keeping talent.

In today’s job market, candidates with in-demand skills can pick and choose where they want to work – and are increasingly demanding more when it comes to pay.

Pay is coming firmly into the spotlight as the cost of living continues to skyrocket. With wholesale gas prices having caused a 50% increase on tariffs – and another price hike set to hit later in the year – petrol prices are at record highs and inflation is expected to exceed 7% by the Spring.

This presents a real challenge for businesses already struggling with a talent shortage as they may lose out on candidates who will be looking to secure higher paid jobs.

Paired with this, is a spike in career changes among candidates – with almost a million people moving from one job to another in the three months to September 2021 [1] – as they seek out greater flexibility or job satisfaction after reassessing their priorities during the pandemic.

All these factors are creating a perfect storm for employers. Hiring and retaining the right talent is key to driving business outcomes—and in order to do so, organizations need to think and act differently.

So, what can and should employers do? We would suggest the following:

Look again at skills and experience – rather than aiming for the perfect candidate, look at candidates that have transferrable skills and the willingness to learn and be prepared to train and develop them.

Look again at pay and benefits – as outside factors are leading candidates to seek out higher paid roles employers need to be competitive and ensure they are offering a fair salary and not trying to get a deal. But it doesn’t just come down to pay by itself. Employees are increasingly motivated by in-work benefits such as the option of flexible or hybrid working.

Look at the Employer Value Proposition – organisations that are seen as employers of choice and are proven to offer an appealing employee experience, will attract and retain the right candidates over their competitors.

As the increased cost of living forces candidates to re-evaluate their priorities when looking for new roles, this creates myriad challenges for hiring organisations. Yet there are steps organisations can take to ensure that they stand out from the crowd and are perfectly positioned to attract and retain the best talent.

 

About Gi Group

Gi Group is one of the world’s leading companies that provide the best services for the development of the labour market. Gi Group is active in the fields of temporary recruitment, permanent and professional staffing, search and selection, executive search, outsourcing, training, outplacement and HR consultancy. Thanks to our direct presence and strategic partnerships in the UK and in more than 57 countries across Europe, APAC, the Americas and Africa, we can guarantee efficiency and quick response.

We are able to assist all clients and candidates, and we have developed strong expertise in large and multinational organisations, for which we have implemented global solutions through specialist divisions and dedicated local and international teams. Gi group are ranked globally as one of the largest staffing firms by Staffing Industry Analysts, and we are also a global corporate member of the World Employment Confederation (formerly CIETT).

If you are currently looking to recruit or want to learn more about Gi Group’s Workforce Solutions, please email InfoUK@gigroup.com.

 

[1] https://www.telegraph.co.uk/money/consumer-affairs/change-jobs-moving-careers-worth-pay-cut-2022/