UK employment market slows

As the credit crunch continues to tighten its hold, UK jobs are becoming increasingly difficult to come by, according to new research released today by HR consultancy Right Management.

The Right Management Outplacement Index reveals that December was a particularly difficult time for British job hunters. The average applicant required 5.00 interviews to secure a new job in December compared to an average of just 3.68 interviews throughout 2007 as a whole. Globally, employees attended an average of 4.78 interviews before finding a new position in 2007.

With companies beginning to tighten their belts and some employees choosing to downshift or start their own business, many jobseekers are accepting lower pay when finding a new job after redundancy. For the year beginning January 2007, seven in ten (69 per cent) Brits going through redundancy landed a job with equal or higher pay to their previous position and this figure was the same for the global market. In December 2007 this figure dropped to just over half (56 per cent), with 44 per cent accepting a job on lower pay.

The Outplacement Index results echo the recent Manpower Employment Outlook Survey for Q1 2008, which found that hiring confidence has hit a six-year low, with employers planning to reduce their hiring levels during the first quarter of this year. However, despite this downturn more employers are planning to take on staff (13 per cent) than reduce headcount (six per cent), with eight in ten businesses expecting to make no changes to staffing levels.*

Tony Martin, Right Management General Manager, commented: ìA slowing job market is always worrying news for employees, and as the UK enters a period of economic uncertainty we can expect more redundancies in the coming year. Despite this predicted downturn, we expect the long-term outlook to be more positive for employees, with the skills shortage encouraging employers to retain their top talent. Businesses feeling the pinch should seek out redeployment options as a way to keep on skilled staff in alternative roles and also ensure that the investment in training and development is not lost.î

ìIf redundancies are the only option, employers should aim to communicate openly with all staff, not just those who are being let go, as times like these can often create a culture of fear in the workplace. Employers which go that extra mile to make the process as stress-free as possible will maintain staff morale amongst those who are retained, and ensure those who do leave become ambassadors for the company.î

Nearly a third (31 per cent) of UK jobseekers surveyed found their new position in 2007 by networking, with only a fifth (21 per cent) successfully finding a job by applying for an advertised position. Globally, jobseekers are most likely to find their next role through a recruitment agency (38 per cent), with 15 per cent networking their way into a new job and only ten per cent going the traditional route of responding to an advert.

Rightís Top Tips for UK Employers

1. Constantly look for lateral redeployment opportunities

2. Implement effective talent management processes to ensure that talent is optimised and retained

3. Ensure any restructuring is clearly communicated to staff from the start of the process

4. Support employees through the transition process with appropriate outplacement support