Looking back to look forward
Welcome to our final edition of 2023! ??
?? Since June, Recruitment Radar has been coming to you each month with deep dives into the world of work, our latest research, and advice on how you can optimise your approach to talent acquisition and retention.
But as the year draws to a close, we’re switching things up a bit. Instead of presenting you with our most recent insights, this month we’re going to be:?
So, without further ado, let’s revisit our most impactful recruitment commentary and analysis from the last 12 months.
Over the past year, we’ve delved into the important trends shaping the employment landscape. Covering everything from salary and benefits to the challenges faced by working parents, we’ve unearthed crucial findings for employers looking to craft successful hiring strategies.
Now’s your opportunity to refresh your memory or catch up on any insights you’ve missed, and kickstart the process of elevating your recruitment efforts for the year ahead.
As UK pay stagnates and real wages decline, it’s imperative for employers to develop compensation strategies that complement their recruitment and retention efforts. Backed by analysis of over 21 million job ads, our Salary and Benefit guides uncover how employers can remain competitive and enhance employee engagement by adjusting their remuneration packages.
Understand what motivates candidates and expand your talent pools as we move into 2024 with our most downloaded piece of research this year. ??
A lack of flexibility is limiting the potential of women in the workforce, with 84% of new mothers facing difficulties returning to work after having a child. That’s why we partnered with the Fawcett Society to explore how employers can foster a family-friendly workplace that champions working parents and sets them up for career success.
Uncover the challenges working parents face and gain insights into implementing policies that unlock their potential with the research that dominated headlines upon release. ????
53% of businesses already use artificial intelligence (AI) to automate processes, with 2 in 5 leveraging its potential as part of their hiring strategy. Drawing from the insights and opinions of 1,005 HR experts, our Q2 Hiring Trends Index focuses on how businesses are integrating AI and its vast capabilities to enhance their recruitment processes.
Unpack the facts behind the adoption of AI and better understand candidate perspectives on its implementation in the research that led to our most popular webinar this year. ??
Rising living costs and inflation have left many people reconsidering their priorities, including where they live and work, with 65% of UK workers open to moving to a new city. Amidst this landscape, we analysed quality of life indicators across 15 cities to uncover how employers can appeal to the talent they need to thrive.
Learn how to showcase the unique strengths of your location, understand what motivates workers to move and attract talent open to relocation in our most-read piece of research in 2023. ??
With the climate crisis a crucial topic of discussion, sustainability is increasingly important for employers, candidates and jobseekers. Based on surveys of 1,011 HR experts and 2,027 UK workers, our Q3 Hiring Trends Index centres around sustainability, examining candidate attitudes towards green employers and how businesses are hiring for green roles.
Explore candidate and employee expectations on sustainability and the steps businesses are taking to adjust to a continually evolving landscape in this timely, evergreen research. ??
Numerous trends and developments have shaped recruitment over the past year, and we hope our research has helped you navigate these changes and develop a robust hiring strategy. However, 2024 promises to bring more change, innovation and adjustments for businesses competing for top talent.
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To help you prepare for what lies ahead, we asked our European Labour Economist Julius Probst, PhD for a brief overview of what we can expect over the next 12 months:
1. Inflation will continue to fall??
Let’s start with some good news. The inflation rate was in the double digits at the beginning of this year but has recently fallen to about 4.6%.
Inflation will continue to decline throughout 2024, though it will not reach the Bank of England’s 2% inflation target before 2025.
2. Real wages will rise slightly??
With inflation coming down, real wages are now finally back in positive territory after the food and commodity price shock saw living standards decline for almost two years.
This is good news for households and will maintain consumer spending. The Tory tax cut to National Insurance effective from January obviously doesn’t hurt.
3. Interest rates will remain high??
Inflation and nominal wage growth are still far too high for the Bank of England’s liking.
Monetary policy-makers will leave interest rates above 4% for another two years or so to bring inflation and wage growth down and back to target.
4. The housing market will stagnate for another year??
High interest rates have caused stagnation in the housing market. Many prospective buyers cannot afford to climb the housing market anymore with mortgage rates exceeding 6%.
House prices have fallen but only slightly. Housing transactions have fallen. Expect more of the same in 2024 before things improve thereafter.
5. The labour market will be slow in H1 but will pick up in the second half of 2024??
The labour market has clearly been weakening in the second half of this year. Payroll employment growth has slowed but is still positive. The Bank of England wants to see a little more slack in the labour market to reduce inflationary pressures in the economy.
While the unemployment rate is expected to remain low in the foreseeable future, employment growth will most likely stall in the first months of next year and will only start to pick up in H2.
So, there you have it – while the next 12 months will undoubtedly bring fresh challenges for employers, it will also provide opportunities to refine your approach to hiring ambitious candidates.
We'll be with you every step of the way, offering regular doses of recruiter advice, market updates and resources we think you need to have on your radar.
But that's all from us for 2023. Thank you to everyone who subscribed this year and helped us grow??
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Merry Christmas!??