Global Uncertainty
From Brexit to the unexpected election of Donald Trump as the next US President, the political situation globally has changed. The resultant drop in company confidence, alongside fluctuation in financial markets and currency, has without doubt affected recruitment plans. Both candidates and companies are thinking carefully before making any changes.
Yet employment levels in Britain are at an all-time high, fueled by the biggest surge of foreign-born workers since the expansion of the European Union. The number of people in work increased by 454,000 between July and September last year and the same period this year. Workers born overseas made up nearly 95 per cent of the increase — just over 430,000.
There are also clear differences between industries. For example, Sterling weakness has boosted exports, meaning that companies with strong overseas sales are likely to be looking to add heads. Recruiters need to understand market change and react accordingly. In addition, the Brexit reality is that Article 50 is unlikely to be triggered before March 2017 – and that will mark the beginning of a complex two year negotiation. There are unlikely to be any changes to UK employment legislation; and any actual change to employing staff from EU, or elsewhere, is not going to come into effect for over two years – if at all.
Indeed, Kevin Green, the Recruitment and Employment Confederation’s Chief Executive, said in an interview in The Times in September: “With record high employment in the UK, the fundamentals of the jobs market are strong. Thanks to a resilient business-as-usual attitude from consumers since the referendum, demand on businesses has remained buoyant and this is reflected in employers saying they will actively expand their workforces in the coming months.
“There are question marks around the sustainability of positive trends we have seen since the referendum. Skills shortages are a major problem in many sectors, one that will only get worse if the supply of skilled EU workers is curtailed. Employer confidence has fallen significantly, suggesting that there is anxiety about what the future holds.”
Recruiters need to work with candidates and clients to dispel some of the myths and concerns regarding Brexit and focus on business as usual wherever possible.
Capturing Candidate Commitment
Competition for good quality candidates was a big issue in 2016 and recent employment figures would suggest the issue will remain in 2017. However, much of the recent boost in employment has been with low paid workers – many of whom (95%) have come from abroad. Given the on-going uncertainty regarding Brexit, companies are still unsure as to future strategies, leaving candidates potentially wary of moving jobs.
Uncertainty in many ways will demand even more proactive candidate nurturing and technology will play a key part in this process. While recruiters have increasingly explored social as a way to communicate with candidates in more personal ways, recent figures from Bond’s research question the way in which individuals are using social media on a day to day basis: only 25% have used social media to find a job and, of these, just 14% found it helpful.
The way in which individuals approach a career change is clearly dependent upon a number of factors, from age to seniority/ job role – but one fact is absolutely clear: the online job site is still the number one preferred starting point for candidates, with 81% of those looking for a job in the last year using these sites. 51% have used a recruitment agency and 37% have used national/local newspapers. Furthermore, there is a strong trend towards niche boards, with 62% of office workers preferring to use an industry or skill specific job board – an even split between each.
Understanding candidate attitudes towards job search is key – and increasingly will demand a far more tailored approach to reflect skill/job type and age. Recruiters will need to be really savvy about the way in which technology is used appropriately to reflect the specific demands of candidates. This can include improving SEO strategies, tailoring advert content and prioritising different job boards for specific skill sets.
Where is Social going in 2017?
Over the past 12 months, we have seen a fragmentation of social media, and the rise of specialist social media platforms within particular industry sectors. Those specialist platforms will have new and interesting ways of capturing data relating to their subscriber bases – giving recruiters new and interesting tools to help analyse who might be suitable for a job.
However, in our research we have seen that fewer candidates than we thought are actually using social media. While 42% of office workers use LinkedIn for work related purposes, when it comes to searching for a job, one in ten candidates would never use social media and a further 40% would be unlikely or very unlikely to use social media.
And while it is perhaps not a surprise that 63% would be unlikely to use Facebook and 73% would be unlikely to use Twitter or Google+ to search for jobs, recruiters also need to know that just 30% would be very likely to use LinkedIn.
But that does not mean agencies should step back from social completely. Firstly, check out the demographic differences – age and job type/skill really affects a candidate’s likelihood to use social and the social platform of choice. Undertake a good review of candidate activities – for example, a survey, or a check box during the application process to help ascertain preferences. And keep pace with social trends - WhatsApp, for example, is growing in popularity – is this something that recruiters have strongly considered? Organisations really need to understand how the market is changing and the specific platforms currently gaining traction with candidates.
Secondly, social is a great way of getting new content into the market, from blogs to eBooks, content that, when created appropriately, can play a key role in SEO strategies and boosting Google rankings.
Doubling-Down on Data Protection
After three years of debate, the new EU Data Protection legislation is imminent, with the final version of the General Data Protection Regulation (GDPR) legislation set to be implemented in 2018. With the threat of costly fines, coupled with the ‘right to be forgotten’, handling data is more challenging for the recruitment industry than ever before. Receiving a large fine can potentially be devastating for any recruitment agency, from not only a financial but also a brand perspective, especially if micro or SME sized.
From defining data strategies to ensuring employees understand their role in data protection, organisations need to take GDPR very seriously indeed.
Good checklist of advice
Recruiters must consider more than just data compliance requirements – the latest trend in data compromise can completely paralyse a business. The rise in data extortion – where criminals are using so called ransomware to hijack data and hold the company to ransom – is causing massive problems for many businesses. Latest research from Intel Security suggests that these attacks are rising at a massive rate – leaving businesses with no option but to pay up to get their data back and the company back in business.
Ensuring data security technology as well as data protection policies are in place and up to date is going to be an essential investment in 2017.
Generation Z enters the workforce
2017 marks the first year Generation Z will be in the workforce. This generation has, again, different attitudes towards employers and employment to previous generations – Generation Zs appear to want to make a difference in the world, have an impact and leave their mark. Furthermore they are even more technologically embedded – from job applications to job boards, if it can’t be done on a mobile or tablet, they will go elsewhere. Recruiters need to be ready because Gen Z would far rather go to one job board with 1000s of jobs than trawl through the individual career pages of multiple agencies. The challenge is to make it easy but also to ensure the journey reflects the way this Generation thinks.
The other consideration is that Gen Z means there are now four generations in the workplace, each with very different attitudes and expectations. For example, recent research from the Harvard Business Review revealed that, just like with all generations studied, millennials negatively stereotype Gen Zs as being lazy, which will cause some friction. Both generations will continue to put pressures on companies to transform the office, reward employees, embrace flexibility, and align the companies interests with a cause – and organisations – many still managed by Gen Xs and older – will have to manage an interesting workplace dynamic.
From work/life balance to benefits packages, a ‘one size fits all’ approach will not work. Gen Z are clearly less concerned about pensions and health insurance; keener on gym memberships and flexible working. They also want to work for companies with good ethical standards, reinforcing the need for CSR and for recruiters to push a client’s CSR activity. For agencies working with repeat candidates – especially temporary placements – it will also be important to reinforce the agency’s own brand image/CSR.
Tailoring job ads towards each generation, both in terms of content and placement, will be important. But there are also roles to play in advising the younger generation about workforce expectations and to provide training in appropriate areas such as interview techniques and responses.
And Finally – Virtual Reality hits recruitment
The affordability of virtual reality (VR) technology has prompted a number of organisations to consider its role in recruitment. The British Army has used it to provide potential recruits with a glimpse into life in the forces to great success, and organisations from oil rigs to manufacturers are exploring the potential for enabling budding candidates understand just what a particular environment or job feels like.
The technology’s potential is still untapped – and few UK organisations have yet to offer a serious VR led recruitment strategy - but in an era of skills shortages and new generations entering the workforce, VR offers both a chance to stand out from the competition and an exciting way of assessing candidate potential.