recruitment and employment confederation employers tracking study: summary 2011 quarter three –...
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Recruitment and Employment Confederation
Employers Tracking Study: Summary
2011 Quarter three – December 2011
Prepared by
Market Shape Ltd
Cordoba Services
December 2011– Page 2
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– Page 3
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– Page 4
1. Economic and trading situation – background
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– Page 5
1. Economic and trading situation – background
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– Page 6
1. Economic and trading situation – background
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– Page 7
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– Page 8
1. Economic and trading situation
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
Percentage of respondents
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– Page 9
Have you made any of the following changes to your workforce in the past year?
1. Economic and trading situation
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– Page 10
1. Economic and trading situation
How much capacity is there in your business to take on more work without creating more jobs?
Base: Respondents who have been affected a bit or much more by economic changes, multiple response
Percentage of respondents
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– Page 11
1. Economic and trading situation
To what extent have your total workforce costs increased over the past 12 months?
Base: Respondents who have been affected a bit or much more by economic changes, multiple response
Percentage of respondents
2
12
44
42
0 10 20 30 40 50
Considerably
A fair amount
Somewhat
Not at all
December 2011– Page 12
1. Economic and trading situation
When do you expect to see conditions improve for your organisation?
Base: All respondents, single response
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
Percentage of respondents
December 2011– Page 13
* 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– Page 14
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?
Base: All respondents, single response
Percentage of respondents
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– Page 15
2. The workforce
In the next four to twelve months, do you think that your organisation’s total workforce will increase or decrease?
Base: All respondents, single response
Percentage of respondents
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– Page 16
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– Page 17
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?
Base: Respondents who use agencies, multiple response
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
Secretarial, Clerical
Accounting, Financial
Other industrial, blue collar
Professional, Managerial
Computing, I T, Telecoms
Sales, retail
Technical, Engineering
Catering, accommodation
Driving, distribution
Education and training
Nursing, Medical, Healthcare
Customer service
Construction
Other: cleaning staff
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– Page 18
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?
Base: Respondents who use agencies, multiple response
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
Secretarial, Clerical
Other industrial, blue collar
Nursing, Medical, Healthcare
Education and training
Sales, retail
Customer service
Technical, Engineering
Driving, distribution
Professional, Managerial
Computing, I T, Telecoms
Accounting, Financial
Catering, accommodation
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– Page 19
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?
Base: Respondents who use agencies, multiple response
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
Secretarial, Clerical
Other industrial, blue collar
Nursing, Medical, Healthcare
Sales, retail
Education and training
Customer service
Technical, Engineering
Driving, distribution
Professional, Managerial
Computing, I T, Telecoms
Catering, accommodation
Construction
Accounting, Financial
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– Page 20
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– Page 21
2. The workforce
In the past 6 months, how many people have you recruited?
Base: All respondents
Percentage of respondents
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– Page 22
3. Talent management
In which job functions have you used agency workers during the past year? (Top ten functions)
Base: Respondents who use agencies, multiple response
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
Secretarial, Clerical
Accounting, Financial
Other industrial, blue collar
Professional, Managerial
Computing, IT, Telecoms
Sales, retail
Technical, Engineering
Catering, accommodation
Driving, distribution
Education and training
Nursing, Medical, Healthcare
Customer service
Construction
Other: cleaning staff
Percentage of respondents
December 2011– Page 23
3. Talent management
In which areas do you expect to find a shortage of appropriate candidates this year? (Top functions)
Base: Respondents who use agencies, multiple response
21
21
16
11
11
11
11
0 5 10 15 20 25
Driving, distribution
Catering, accommodation
Accounting, Financial
Professional, Managerial
Nursing, Medical, Healthcare
Education and training
Construction
Percentage of respondents
December 2011– Page 24
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– Page 25
4. Management of temporary workers
In terms of agency workers pay rates, would you say that…?
Base: Respondents who use agencies, single response
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
Percentage of respondents
December 2011– Page 26
4. Management of temporary workers
Which one of the following actions would you take if you couldn’t use agencies to provide temporary workers?
Base: Respondents who use agencies, single response
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
Percentage of respondents
December 2011– Page 27
5. Agency selection / Recruitment channels used
How do you recruit temporary workers? (Top 10 ways)
Base: Respondents who use agencies, multiple response
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
Percentage of respondents
December 2011– Page 28
5. Agency selection / Recruitment channels used
How did you / does your organisation decide to use agencies? (Top 10 ways)
Base: Respondents who use agencies, multiple response
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
Percentage of respondents
December 2011– Page 29
5. Agency selection / Recruitment channels used
How important to you are the following factors when it comes to choosing and using a recruitment agency to cover temporary positions?
Base: Respondents who use agencies, single response
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– Page 30
6. Agency assessment
How important is / are your agency / agencies in helping your organisation meet its corporate objectives and strategy?
Base: Respondents who use agencies, single response
2
28
4
51
16
0
10
20
30
40
50
60
Not important at all Not especiallyimportant
Neither Quite I mportant Very important
Percentage of respondents
December 2011– Page 31
6. Agency assessment
How satisfied are you overall with the agencies you have used in the last 2 years?
Base: Respondents who use agencies, single response
Percentage of respondents
2
7
4
60
27
0 10 20 30 40 50 60 70
Very dissatisfied
Fairly Dissatisfied
Neither
Fairly Satisfied
Very Satisfied
December 2011– Page 32
6. Agency assessment
How effective are your agencies in helping to fill in any gaps in the skills or capabilities of your organisation?
Base: Respondents who use agencies, single response
Percentage of respondents
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– Page 33
6. Agency assessment
What could these recruitment and employment agencies do to improve their service to you?
Base: Respondents who use agencies, multiple response
Percentage of respondents
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– Page 34
8
0
92
0 10 20 30 40 50 60 70 80 90 100
No
Not sure
Yes
7. The Agency Workers Directive
Base: All respondents
Are you aware that the rules concerning the use of agency workers changed in October 2011?
December 2011– Page 35
7. The Agency Workers Directive
Base: All respondents
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– Page 36
7. The Agency Workers Directive
Base: All respondents
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– Page 37
7. The Agency Workers Directive
Base: All respondents
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– Page 38
7. The Agency Workers Directive
Base: All respondents
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– Page 39
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)
7. The Agency Workers Directive
Base: All respondents
As far as you know, have the changes your organisation made as a result of the AWR ….
December 2011– Page 40
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
7. The Agency Workers Directive
Base: All respondents
On the basis of the impact you have seen in your organisation, do you think the AWR has ….
December 2011– Page 41
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
Percentage of respondents
December 2011– Page 42
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
Percentage of respondents
December 2011– Page 43
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]