Britain’s small and medium-sized businesses can expect no reprieve from recruitment difficulties, as a new report warns of worse times to come.
The Recruitment Confidence Index (RCI), produced by the Cranfield School of Management, has found that the labour market is tightening to its highest point in six years, with 82% of organisations anticipating trouble in finding quality people to fill vacancies.
The means that recruitment difficulties currently stand at their highest level since the RCI was started in 1999. The areas with the most problems in finding staff have consistently been engineering and computing.
As a result of expected problems, 39% of employers anticipate increasing their employment expenditure over the next six months, and expected staff turnover is at its highest level for five years.
Dr Emma Parry, research fellow at Cranfield School of Management, commented:
“Employment levels have increased in the eight years we’ve been doing the RCI. Organisations have been recruiting more and more, but fewer high quality people have been coming into the workforce, resulting in rising recruitment difficulties for employers.”
However, she also warned that money alone will not solve the problem:
“Organisations need to look at their employer brand and differentiate themselves from their competitors. They need to take a structured approach to development and retention, enabling them to “grow their own talent” and have an edge in the tight labour market.”
© Crimson Business Ltd. 2007
