As the Prime Minister outlines a road map to leaving lockdown and vaccinations gather pace, a welcome feeling returns - optimism!
In a business, the ultimate expression of optimism is recruitment.
Taking on new people sends the message that the organisation is ready to grow, and the direction of travel is onwards and upwards.
So it is heartening to see the results of the latest Labour Market Outlook (Winter 2020-21) from the CIPD (Chartered Institute of Personnel and Development).
The key highlight for job seekers and people looking to change careers is that more than half (56%) of employers responding to the winter survey are planning to recruit in Q1 2021.
Based on a survey of senior HR professionals and decision-makers in the UK undertaken between 5th and 30th January 2021, the CIPD report is one of the most respected barometers of recruitment activity, so this is very welcome news.
Gerwyn Davies, CIPD Senior Labour Market Analyst, concludes that: “The short-term jobs outlook looks more positive compared with the situation three months ago, which seems to be having a positive knock-on effect on the wage prospects of workers.”
Davies does caveat his optimism by emphasising the need for an extension of the Job Retention Scheme.
Alex Fleming of Adecco Workforce Solutions (sponsors of the report) also offers guarded optimism.
She says, “The largely positive sentiment of the employment market at the beginning of 2021 is welcome following 12 months of non-stop turbulence, but we are far from stability… To make the positive intentions in this report a reality, employers must focus on the support infrastructure needed to provide positive employment destinations for young people, and to provide open recruitment and fair progression for those entering the workforce this year.”
As well as the prospect of increased recruitment, the level of redundancies looks set to slow. 20% of organisations expect to make some redundancies in the next three months, down ten percentage points from the autumn quarter. These numbers are still too high, but are at least heading in the right direction.
And will we get paid more? Median basic pay increase expectations for the next 12 months are at modest 1%, which is actually unchanged from the last quarter. An increase in wage rise expectations in the private sector has been offset with a more pessimistic view from the public sector.
Decent wage increases will take a while longer, which is hardly surprising after such a difficult year, but there is certainly a light at the end of the tunnel.
According to this survey, we are now in a market where more businesses are looking to recruit rather than letting people go. If demand continues, then salaries will rise.
Spring is on the way and jobs are starting to return!
If you are looking to recruit or if you are seeking a new roles, please get in touch with the Harvey John team.
Check out our latest vacancies here