New economic research by Windsor-based executive recruitment company Archer Mathieson reveals that senior business professionals fear a challenging and competitive labour market may prevent them meeting their staff needs in the next 12 months. The firm compiled its ëEconomic Survey 2007í* in conjunction with Dennis Turner, chief economist of HSBC Bank.
Archer Mathieson, a specialist recruiter in finance, human resources and information technology, set up the research using its database of clients in London and the Home Counties.
Nearly 200 professionals, of whom 59% work within finance and 30% within HR, responded to the e-survey. They represented a variety of industry sectors including business services, technology, manufacturing, pharmaceuticals and retail.
But while employment figures currently stand at the highest level in history, 65% of respondents say they expect to face a shortage in candidates over the next 12 months. This is compounded by a pressure to reduce labour costs felt by almost 80% of respondents.
Many anticipate a need for greater flexibility and creativity in filling vacancies and rewarding their teams. A huge 90% would consider employing interim specialists, and almost as many favour the use of alternative forms of remuneration beyond basic salaries.
Ashton Ward, senior partner of Archer Mathieson, says the survey findings confirm that firms face steep competition to lure high-quality candidates.
ìWe are seeing an on-going battle in the fight for talent, and knowing your market is becoming increasingly important in the role of the modern-day recruiter,î says Mr Ward. ìWe believe Archer Mathieson has the edge because our consultants are discipline-focused in finance, HR, and IT. As a result, we have first-class knowledge of a particular candidate talent pool, and are able to advise our clients accordingly.î
He adds: ìUltimately, long-term success in this business is based on consistent delivery. We develop strong, last-lasting relationships with both clients and candidates, and are recognised as a reliable resource for our customers.î
The survey also finds that consumer spending tops the rankings as the most important indicator of economic outlook, followed by interest rates and gross domestic product (GDP). Businesses involved in the fast-moving consumer goods (FMCG) and retail sectors were the most likely to rank consumer spending at the top, while the pharmaceutical and technology sectors were more likely to use interest rates as an indicator.
A solid 70% of the sample considers their industry sector to be stable ñ especially in business services. However, approximately half of FMCG and retail respondents believe their sector is in a volatile period.
The pharmaceutical, business services and technology sectors are all optimistic of achieving volume growth above the Bank of Englandís 3% forecast in 2007. However, this view is not shared by all those in manufacturing and retail.
And, as recorded in Archer Mathiesonís 2006 ëChanging Workplaceí survey**, many respondents feel an increasing pressure to move parts of their business abroad ñ an option previously considered only by the largest organisations.
Dennis Turner is an eminent economist whose role with HSBC involves advising lending bankers on economic trends, not just nationally but also regionally and within different industries.
ìThis helpful survey provides insight into the day-to-day problems facing companies operating in the fastest-growing region in the UK,î he said.
Archer Mathieson Economic survey highlights skills shortage
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