Vast majority of firms struggling to fill vacancies

Employers are still struggling to fill vacancies according to the latest Annual Recruitment, Retention and Turnover Survey from the Chartered Institute of Personnel and Development. The survey of 715 UK employers found that 85% had experienced recruitment difficulties in the last year.

Analysis of the survey shows recruitment difficulties in the private sector to be growing, while the public sectorís difficulties ease. A quarter of firms are also struggling to recruit the most senior staff and directors that their organisation requires ñ pointing to a shortage of leadership talent in the UK.

Responses to the recruitment problems vary. Of the 38% of employers who have turned to migrant labour to fill vacancies, over half say they have increased the proportion of vacancies they filled with overseas workers during 2004. Many more are being forced to recruit people who do not have all the necessary skills and experience required to do the job, and then investing in developing these people into the role.

Specific findings include:

Recruitment difficulties:

85% of employers experienced difficulties recruiting for one or more vacancy in the last year ñ exactly the same proportion as recorded in the 2004 survey.
The proportion of private sector firms reporting recruitment difficulties in our 2005 survey grew to 85% (from 82% in the 2004 survey), while public sector recruitment difficulties eased from 90% in the 2004 survey to 83% in the 2005 survey.

Rebecca Clake, Recruitment and Retention Adviser at the Chartered Institute of Personnel and Development, commenting on the survey findings, said:

ìLow unemployment and a generally buoyant economy have made it a job-seekers market. Employers are fighting over a small number of potential recruits, and are left facing real difficulties getting the right people into the right jobs.î

A shortage of leadership?:

24% of employers reported most difficulty recruiting to senior management or director level vacancies ñ rising to 27% in the private sector ñ indicating a shortage of leadership talent.
But the category of vacancy causing the biggest recruitment headaches for employers was management and professional vacancies ñ 45% of employers said this was one of the categories of vacancy they were finding most difficult to fill.

Rebecca Clake said: ìThe difficulties that a quarter of employers have had recruiting at the most senior level in their organisations show how important investment in succession planning and leadership development by UK firms is. And shortages of managers and professionals highlight the need for employers to plan carefully to meet future business needs.

ìIt is dangerous to assume that senior talent can just be bought in when it is needed. Clear, long-term strategies for identifying the leaders of the future are the best ways of ensuring that UK organisations continue to thrive in the future.î

Recruiting the unfinished article:

Over two-thirds of employers (68%) have had to appoint someone in the last year who didnít have all the skills and experience required to do the job, but who has the potential to grow into the role.

Rebecca Clake said: ìMany employers are sensibly recruiting people who are not quite the finished article, but who they see as having future potential. This means an ongoing challenge for line managers and training and development managers in ensuring the current high intake of employees with development needs go on to make a full contribution to their organisation.î

Migrant labour relieves recruitment pressures:

Nearly two fifths (38%) of employers have recruited non-UK residents to fill vacancies in the last year ñ rising to 44% of employers in the public sector.

Of the 38% of employers who have turned to migrant labour to fill vacancies, 53% say they have increased the proportion of vacancies they filled with overseas workers during 2004, while it decreased as a proportion for only 3% of employers.

Three quarters (76%) of employers recruited migrant workers on permanent contracts in the last year. By contrast, only 19% recruited for one-year contracts, and only 16% recruited for short-term (seasonal) contracts ñ indicating that most migrant labour is not transient.

Rebecca Clake said: ìIn the face of such persistent recruitment difficulties, it is not surprising that many employers are looking overseas for new recruits. This shows how crucially important for the UK economy it is that government does not unduly restrict the supply of labour with any new legislation to limit immigration. If the new rules are set too tightly, employers will be left struggling to function due to a shortage of labour.î