recruitment and employment confederation employers tracking study: summary 2011 quarter three –...

Recruitment and Employment Confederation

Employers Tracking Study: Summary

2011 Quarter three – December 2011

Prepared by

Market Shape Ltd

Cordoba Services

December 2011–

1. Economic and trading situation2. The workforce3. Talent management4. Management of temporary workers5. Agency selection6. Agency assessment7. Agency Workers Directive (NOTE: new questions featured here)

8. Current Issues

Contents

December 2011–

1. Economic and trading situation – background

The rate of increase in claimant numbers has slowed significantly

1,455 1,4581,450

1,456

1,473

1,496

1,527

1,561

1,580

1,593 1,596 1,599

-0.2%

-0.4%

0.3%

-0.6%

0.4%

1.2%

1.5%

2.1%

2.2%

1.2%

0.8%

0.2%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

1400

1450

1500

1550

1600

1650

Ch

ang

e m

on

th o

n m

on

th

Cla

iman

t n

um

ber

s

Source: Labour Market Statistics, December 2011

800900

10001100120013001400150016001700

Nov

200

8

Jan

2009

Mar

May Ju

l

Sept

Nov

Jan

2010

Mar

May July

Sept

embe

r

Nov

embe

r

Janu

ary

Mar

ch

May July

Sept

embe

r

Nov

embe

r

Claimant numbers 2008 - 2011

December 2011–


Use of temporary staff continues to decline slowly

1,578 1,554 1,595 1,561 1,524

2,499 2,5182,430

2,510

2,638

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

Aug - Oct 2010 Nov - Jan 2010 Feb - Apr 2011 May - Jul 2011 Aug - Oct 2011

No

s in

000

sSource: Labour Market Statistics, December 2011

Temps in work

Unemployed

December 2011–


Consumer Confidence is at an all-time low according to Gfk NOP "The two point drop in the index this month means consumer confidence is now at its lowest ebb in almost three years.

In fact, in the 37 years the index has been running it has only been lower on two occasions – a single month in 1990, and eight months during the 2008-2009 recession.

"Optimism has not been lifted by pre-Christmas spending and it is hard to see grounds for a recovery in confidence in the near future. The eight per cent drop in the score for the general economic situation over the next 12 months is significant and will make chilling reading for the Government and British businesses.”

Nick Moon, Managing Director, GfK NOP Social Research

December 2011–


Lloyds Bank notes that “As this indicator leads quarterly GDP growth by 3-4 months, it suggests that economic activity will progressively weaken during the first quarter and the start of the second quarter of 2012”

December 2011–

1. Economic and trading situation

What do you see as the most important challenge facing your organisation in the next 2 – 3 years?

Base: All respondents, single response

Percentage of respondents

2

2

2

2

3

3

3

4

5

5

7

10.5

14

17.5

0 5 10 15 20

margins

Nothing

don't know

Dont know

Staff retention

Competition

Not sure

Funding

Budgets / Cost control

Legislation / regulations

Staying in business / getting through the recession

Attracting new clients / guests / students / winning…

Growing sales / growing the business

Economic climate / stablility / stabilisation

December 2011–


Have you made any of the following changes to your workforce in the past year?

Base: Respondents who have been affected a bit or much more by economic changes, multiple response


14

4

3

19

16

0 2 4 6 8 10 12 14 16 18 20

Staffing Increased

Reduced Hours

Reduced Pay

Headcount Freeze

Redundancies

December 2011–

Have you made any of the following changes to your workforce in the past year?


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%Responses to recession - the 2 year view

None

Headcount Freeze

Redundancies

Reduced Hours

Reduced Pay

Staffing Increased

December 2011–


How much capacity is there in your business to take on more work without creating more jobs?



1

19

49

32

0 10 20 30 40 50 60

Considerable – we have a great deal of spare capacity

A fair amount – we could take on a lot more work

now

A little – we might take on staff if demand grew this

year

None – we would have to take on new staff

December 2011–


To what extent have your total workforce costs increased over the past 12 months?



2

12

44

42

0 10 20 30 40 50

Considerably

A fair amount

Somewhat

Not at all

December 2011–


When do you expect to see conditions improve for your organisation?


31

27

0

9

33

0 5 10 15 20 25 30 35

Not for quite a while,2013 or beyond

Some time during 2012

Later this year, 2011

Things are starting to pickup now

They are ok now, noimprovement needed


December 2011–

* The Confidence Barometer is calculated from the responses to the following questions: – When do you expect to see conditions improve for your organisation? – In the next 3 months, and 4 to 12 months, do you think that your organisation’s use of agency workers will

increase or decrease? – In the next 3 months, and 4 to 12 months, do you think that your organisation’s use of permanent workers will

increase or decrease?

Serious problems-50-40-30-20-10

Neither better or worse010203040

Growing prosperity50

1. Confidence barometer

Base: All respondents

The REC Employers Confidence Barometer lifted 3 points in October, suggesting greater confidence in the ability to maintain employment levels

December 2011 = 2418

2123 23

26 26 26

2220 19

22

25 24

0

3

6

9

12

15

18

21

24

27

REC Employer Confidence Barometer

December 2011–

2. The workforce

In the next three months, do you think that your organisation’s use of permanent and agency workers will increase or decrease?



1

6

68

24

1

0 10 20 30 40 50 60 70 80

Decrease Greatly

Decrease Slightly

Stay the Same

Increase Slightly

Increase Greatly

December 2011–

2. The workforce

In the next four to twelve months, do you think that your organisation’s total workforce will increase or decrease?



2

17

75

3

4

0 10 20 30 40 50 60 70 80

Decrease Greatly

Decrease Slightly

Stay the Same

Increase Slightly

Increase Greatly

December 2011–

2. The workforce

In the next three months, do you think that your organisation’s use of agency workers will increase or decrease in these functions?

Base: Respondents who use agencies, multiple response

How will your temporary workforce change in the next three months?

2 4

4

2

2

2

2

3

22

21

20

16

12

12

8

12

10

10

8

2

2

2

2

2

2

4

4

2

5

2

4

2

3

0 5 10 15 20 25 30 35 40 45 50 55

Secretarial, Clerical

Accounting, Financial

Other industrial, blue collar

Professional, Managerial

Sales, retail

Driving, distribution

Computing, I T, Telecoms

Catering, accommodation

Technical, Engineering

Education and training

Customer service

Nursing, Medical, Healthcare

Construction

Other: cleaning staff

Recruitment to recruitment

Decrease greatly Decrease slightly Stay the same Increase slightly Increase greatly

0%

14%

76%

9%1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

I ncrease greatly I ncrease slightly Stay the same decrease SlightlyDecrease greatly

December 2011–

2. The workforce

In the next four to twelve months, do you think that your organisation’s use of agency workers will increase or decrease in these functions?


2

2

2

2

2

2

2

2

2

2

22

17

16

16

8

8

10

10

6

10

5

6

2

2

2

2

2

4

2

2

2

2

1

1

0 5 10 15 20 25 30






Sales, retail






Customer service

Construction


Decrease greatly Decrease slightly Stay the same Increase slightly Increase greatly

How will your temporary workforce change in the next twelve months?

1%

10%

78%

4% 7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

I ncrease greatly I ncrease slightly Stay the same decrease Slightly Decrease greatly

December 2011–

2. The workforce

In the next three months, do you think that your organisation’s use of permanent staff will increase or decrease in these functions?


How will your permanent workforce change in the next three months?

2

1

20

11

12

13

7

2

4

2

3

3

1

7

8

4

6

8

6

2

4

2

2

2

2

2

0 5 10 15 20 25 30





Sales, retail

Customer service







Agricultural

Construction

Recruitment to recruitment

Decrease greatly Decrease slightly Stay same Increase slightly Increase greatly

1%

40%

57%

1% 1%

0%

10%

20%

30%

40%

50%

60%

I ncrease greatly I ncrease slightly Stay the same decrease SlightlyDecrease greatly

December 2011–

2. The workforce

In the next four to twelve months, do you think that your organisation’s use of permanent staff will increase or decrease in these functions?


23

15

14

9

11

6

4

2

2

3

2

3

1

4

2

2

4

4

3

4

4

2

3

2

1

2

1

0 5 10 15 20 25 30




Sales, retail


Customer service






Construction


Agricultural

Decrease greatly Decrease slightly Stay same Increase slightly Increase greatly

How will your permanent workforce change in the next twelve months?

3%

26%

71%

0% 0%0%

20%

40%

60%

80%

I ncrease greatly I ncrease slightly Stay the same decrease Slightly Decrease greatly

December 2011–

2. The workforce

What proportion of your temporary staff transfers to become permanent members of your workforce? Temp to perm transfer scores

NOTE: The transfer score is based on estimated numbers of people transferring, weighted by organisation size in employee numbers

76 79 80 8076 74

7782 84 84 84 83 84

-4%

4%

1%0%

-5%

-3%

4%

6%

2%

0%

0%

-1%

1%

-10%

-5%

0%

5%

10%

15%

0

10

20

30

40

50

60

70

80

90

Rat

e o

f ch

ang

e m

on

th t

o m

on

th

Tem

p t

o p

erm

tra

nsf

er s

core

December 2011–

2. The workforce

In the past 6 months, how many people have you recruited?



38%

9%

14%

5%

7%

1%

2%

0%

25%

0% 5% 10% 15% 20% 25% 30% 35% 40%

A. 1-9 Emps

B. 10-19 Emps

C. 20-49 Emps

D. 50-99 Emps

E. 100-199 Emps

F. 200-499 Emps

G. 500-999 Emps

H. 1000+ Emps

None

December 2011–

3. Talent management

In which job functions have you used agency workers during the past year? (Top ten functions)


16

12

10

10

8

8

7

7

6

6

4

3

3

1

0 2 4 6 8 10 12 14 16 18 20





Computing, IT, Telecoms

Sales, retail






Customer service

Construction



December 2011–

3. Talent management

In which areas do you expect to find a shortage of appropriate candidates this year? (Top functions)


21

21

16

11

11

11

11

0 5 10 15 20 25







Construction


December 2011–

4. Management of temporary workers

How important would you say that agency workers are for your organisation in terms of the following?

Base: Respondents who use agencies, single response

11

30

14

22

8

9

6

19

20

26

3

20

23

29

23

23

11

30

15

14

28

16

25

25

45

7

14

13

52

16

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Covering short term staffleave

Keep running costs down

Managing fast changingorganisational requirements

Managing Uncertainty duringeconomic downturn

Meeting peaks in demand

Responding to growth

1 2 3 4 5

not at all important (1) (5) very important

December 2011–


In terms of agency workers pay rates, would you say that…?


11

17

72

0 10 20 30 40 50 60 70 80 90 100

Temporary workers earnless than they would ifthey were permanent

Temporary workers earnmore than they would ifthey were permanent

Temporary workers earnabout the same as they

would if they werepermanent


December 2011–


Which one of the following actions would you take if you couldn’t use agencies to provide temporary workers?


20

4

76

0 10 20 30 40 50 60 70 80

Cover the workload with yourexisting workforce

Look at internal flexibility,such as overtime

Recruit temporary workersyourselves


December 2011–

5. Agency selection / Recruitment channels used

How do you recruit temporary workers? (Top 10 ways)


2

2

2

3

4

4

5

5

7

11

57

0 10 20 30 40 50 60

recommend a friend scheme

Pool of staff

NHS J OBS

Use social and professional networking sites

Advertise internally at work

Advertise externally innewspapers/ trade/professional press

Ask around

Advertise on the organisations external website

J ob Centre

Use online job boards

Use of Recruitment Agencies


December 2011–


How did you / does your organisation decide to use agencies? (Top 10 ways)


3

5

6

7

9

14

14

19

19

0 2 4 6 8 10 12 14 16 18 20

Can provide someone quickly

Has consultants I get on with/know the consultants

Has the best candidate for the job

Its the cheapest

Agency went through a tender process

PSL

Local

Ive used them before/always used them

Has the most knowledgeable consultants


December 2011–


How important to you are the following factors when it comes to choosing and using a recruitment agency to cover temporary positions?


30

1

18

13

27

11

15

6

3

14

25

28

39

23

4

34

11

30

15

18

17

28

7

30

11

54

76

11

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Brand image of the agency

Management informationprovided

Membership of a trade orprofessional organisation

Price/Costs of the workers

Quality of Service

Scale of the agency

1 2 3 4 5

not at all important (1) (5) very important

December 2011–

6. Agency assessment

How important is / are your agency / agencies in helping your organisation meet its corporate objectives and strategy?


2

28

4

51

16

0

10

20

30

40

50

60

Not important at all Not especiallyimportant

Neither Quite I mportant Very important


December 2011–


How satisfied are you overall with the agencies you have used in the last 2 years?



2

7

4

60

27

0 10 20 30 40 50 60 70

Very dissatisfied

Fairly Dissatisfied

Neither

Fairly Satisfied

Very Satisfied

December 2011–


How effective are your agencies in helping to fill in any gaps in the skills or capabilities of your organisation?



4

4

7

59

27

0 10 20 30 40 50 60 70

Not effective at all

Not especially effective

Neither

Quite effective

Very effective

December 2011–


What could these recruitment and employment agencies do to improve their service to you?



2

3

7

9

13

17

17

18

0 2 4 6 8 10 12 14 16 18 20

Provide us with more information on workers

Manage the relationship with us better

Stop hassling all the time

Carry out checks on workers/ their experience

Nothing, are happy with their service

Send Quality / Reliable / the right workers

Listen to our needs/improve their understanding

Cut the cost of employing these workers

December 2011–

8

0

92

0 10 20 30 40 50 60 70 80 90 100

No

Not sure

Yes

7. The Agency Workers Directive


Are you aware that the rules concerning the use of agency workers changed in October 2011?

December 2011–



Did your Organisation make any changes in the use of Agency workers before October 2011 because of the new rules?

25

9

66

0 10 20 30 40 50 60 70

Yes

Unsure

No

December 2011–



What changes did you make before October 2011 due to the new rules?

35%

23%

16%

6%

20%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Lower use of temporary staff

Training for staff on theimplications

More use of permanent staff

Other: Fixed term staff

Other

December 2011–



Has your organisation made any changes since the Agency workers rules came into force in October 2011?

11

9

80

0 10 20 30 40 50 60 70

Yes

Unsure

No

December 2011–



What changes have you made since October 2011 due to the new rules?

20%

20%

20%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Lower pay for some staff

Lower use of temporarystaff

Other: Fixed term staff

More use of permanentstaff

December 2011–

13

63

24

0 10 20 30 40 50 60 70

Reduced your costs

Made no difference toyour costs overall

Increased the costs foryour organisation

(including all costs ofstaffing and admin etc)



As far as you know, have the changes your organisation made as a result of the AWR ….

December 2011–

4

70

26

0 10 20 30 40 50 60 70 80

Created an overallimprovement

Been mainly neutralin it’s effects

Caused moreproblems than

benefits



On the basis of the impact you have seen in your organisation, do you think the AWR has ….

December 2011–

8. Current issues

What impact do you think significant Public Sector spending cuts would have on your organisation? - Public Sector respondents only

Base: Public sector respondents, single response

34

36

11

15

4

0 10 20 30 40 50

Very serious impact

Quite serious impact

Little impact

No impact

Don’t know


December 2011–

8. Current issues

What impact do you think significant Public Sector spending cuts would have on your organisation? - Private Sector respondents only

Base: Private Sector respondents, single response

1

18

31

46

4

0 5 10 15 20 25 30 35 40 45 50

Very serious impact

Quite serious impact

Little impact

No impact

Don’t know


December 2011–

Contact details

For further information, please contact:

Roger TweedyRecruitment & Employment ConfederationTelephone: 0207 009 2119Email: [email protected]

Mike KeepMarket Shape LtdTelephone: 01604 642 233 Email: [email protected]

Michael BrewerCordobaTelephone: 0844 879 4326 Email: [email protected]

recruitment and employment confederation employers tracking study: summary 2011 quarter three –...

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