Are you harnessing this segment of the working population?
The latest Office of National Statistics data has revealed the unemployment rate has dropped to 3.9%, the lowest it’s been since 1975. While we’ve been enjoying a rate around this level for the last 18 months, what is of most interest is the reason behind the drop – women.
Of the 179,000 people that joined the workforce over the last quarter, 80% of those were women, taking the total number of employed women up to 15.4 million, the highest it’s ever been. A deeper dive revealed that, in the last ten years, there has been a 38% rise in women over 50 working, with 4.9 million now employed. This figure is double what it was in 1994. Students are also transitioning into the workforce, with the number of students not working dropping by 38,000 in the last quarter.
While there are always a number of factors at play, the rising pension age has no doubt made an impact. With the state pension set to be 66 in 2020 for both men and women, both sexes are having to stay in employment for longer. The statistics corroborate this – only 620,000 women under 64 have retired, a 44% decrease over the last 10 years.
Wage growth has also grown at the fastest pace in over 10 years, with total earnings rising by 3.5% over the quarter. This indicates that businesses are looking beyond Brexit, opting to invest in human capital rather than longer-term investments. Our own data reflects this – we had consistent levels of new business called in over the first quarter, with businesses demonstrating resilience in the face of uncertainty. Since the announcement of a delayed Brexit deadline, there’s been a huge uplift, indicating even more positivity within the hiring market. At the end of the day, businesses are getting on with it.
So, with all of this in mind, how should organisations look to approach recruiting for the next few months?
1. Move quickly
A low unemployment rate means fantastic candidates can be hard to come by. Therefore, should you be introduced to a candidate that satisfies your criteria, it’s essential you move quickly through the recruitment process. It’s very likely that they are interviewing elsewhere, so hesitating will only mean you miss out.
2. Prioritise diversity
Research has shown that businesses are financially better off if they employ a diverse workforce[1], so hiring managers have no excuse. With female segments of the market thriving, HR teams need to look at how they can attract and retain employees of different sexes and ages. If there isn’t already one in place, consider a return-to-work programme for mothers, for example, or re-design your benefits to be more attractive to this segment.
3. Evaluate salaries and benefits
With wage growth on the up, innovative companies need to make sure they are offering a competitive salary package. Resources like our 2019 Salary and Benefits Review can provide a benchmark for particular roles and industries, creating a framework on which you can build your offering. Don’t forget about your benefits – they can often make the difference when your competitors’ salaries are similar.
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Should you need recruitment advice or assistance, get in touch.