Companies face toughest recruitment climate yet

2007 Hydrogen Employment Attitudes Survey Released

Low unemployment, a buoyant labour market and a highly mobile workforce is making it increasingly difficult for companies to recruit the right people, according to the 2007 Hydrogen Employment Attitudes Survey.

The report, based on a survey of 1,800 companies and employees, found that the majority (60%) of businesses in professional sectors find it hard to recruit the appropriate staff. Of the respondents interviewed, which stretched across finance, law, accounting, IT, sales, and HR, the majority (62%) complained that there was a shortage of suitably qualified or skilled individuals in their industry.

ìPhrases like ëthe war on talentí have been banded about so much recently that they have become clichs, and devalued the challenge many organisations face,î said Ian Temple, Executive Chairman of the Hydrogen Group, one of the UKís foremost group of niche recruitment consultancies. ìThe fact is that itís currently harder than ever for ëprestigeí companies to recruit appropriately-skilled staff, thanks to factors such as sustained high employment and the reduced graduate intakes in many industries between 2001 and 2004.î



This continued skills shortage is placing greater strain on companies. Many are forced to increase bonuses and wages, with a third of companies survey pledging to review their reward scheme to attract and retain staff. Others are forced to recruit from abroad, with 35% of legal recruiters and 22% of finance recruiters now looking overseas to meet their recruitment needs.

Ian Temple said, ìThereís currently a ëperfect stormí of factors working against companies hiring in high-earning sectors. To counter this, recruitment must become central to business strategy, rather than languish as a process owned by one department.î

Temple argues that due to the market being weighted in their favour, employee expectations are beginning to exceed what companies can realistically offer.

ìWeíre in a situation where wages are increasing across the board for mid to senior level positions,î he said. ìThis is encouraging a greater level of churn in the market with 60% of employees surveyed admitting they will change jobs within the next six months to seek greater challenges and reward.î

ìHowever, with increasing interest rates, wages canít increase forever; and a shortage of talent means that people will have to accept a work-heavy work/life balance for a while longer. It is conceivable that there will be a correction in the market, and candidates will have to lower their expectations.î

The report also argues:

Regulatory changes are leading to a shortage of financial IT staff. Legislation such as Europeís MiFID (Markets in Financial Instruments Directive) and Basel II, are creating a shortage of appropriately skilled specialists with nearly 80% of respondents citing a lack of specialist skills-sets amongst candidates.

Almost a third of internal auditors will be looking for a job in the next six months. However there is a gap between those looking to move and the jobs available. The majority of people seeking new employment have at least 10 yearsí audit experience, whereas a third of all current opportunities are for people with only three to five years in the job.

HR professionals are over-worked and unhappy. Only 40% of those surveyed believed they had a good work/life balance, compared to an average of 52% across other professions. HR professionals are also the most likely to be unhappy in their current job, and the most likely to struggle for acknowledgement for their role within their business. An astonishing 72% of HR professionals surveyed stated that they were looking to move jobs in the near future.

Lawyers were the most likely of all professions surveyed to plan to leave their profession, with nearly a fifth stating that they were unlikely to remain in law in five yearís time.

The happiest employees surveyed were those in internal audit and operational risk. Nearly 70% of audit professionals are happy with their job, and nearly three quarters (74%) said they had a good work/life balance.