How to boost recruitment in a tight labour market

UK job vacancies are at a record high. According to the Office for National Statistics, the period between November 2021 to January 2022 saw vacancies reach 1,298,400.

The reason? A straightforward case of supply and demand. The record number of unfilled vacancies means that subsequent demand for staff is high; meanwhile, low unemployment rates – plus a reduced labour force as a result of the pandemic – mean that fewer people are seeking work and supply is limited. Together, this results in a tight labour market, where demand for labour is as strong, or stronger, than supply, and employers must compete for workers.

Businesses now face significantly challenging conditions – ones that leaders and human resource professionals alike must seek to weather in both the short and long-term.

Current outlook for the UK labour market

In their latest Labour Market Outlook report, CIPD – the professional body for HR and people development – share some revealing statistics:

• 46% of employers continue to face recruitment challenges in the form of hard-to-fill vacancies.
• 41% of employers report increased staff turnover and difficulty in retaining employees over the last six months.
• The sectors currently facing the biggest recruitment challenges are healthcare, public administration and other public sector work, and construction.
• Only 6% of employers plan to decrease staffing levels over the next quarter.
• Employers have responded to recruitment challenges by raising pay – employers expect median pay awards to be 3% – advertising the flexibility of jobs, and upskilling existing staff.
• The official redundancy rate is at a record low, with redundancy intentions below pre-pandemic levels.

Clearly, businesses have been profoundly impacted by both the challenges posed by the current job market and the pandemic-driven Great Resignation. How can they successfully fill job vacancies in this difficult climate? Is it possible to adapt hiring processes to attract greater numbers of applicants? What internal and external solutions are available?

Retention and recruitment strategies

To succeed with the odds stacked against them, employers must ensure that recruiting methods are fit for purpose and suitably adapted to the needs of today’s job seekers. However, retention must also be prioritised: it’s as critical as recruitment to workforce planning and management, and can have widespread, negative impacts if not addressed. It is possible for businesses to bring in great candidates during more challenging times, but it requires a consistent, concerted approach.

Business leaders should review the recruiting process to identify whether, and to what extent, changes are required. Are job ads clear and conveying appropriate messaging? Which job boards and methods are being used and are they successful in reaching qualified applicants? What else could be done to maximise talent acquisition? HR personnel and hiring managers should ask themselves these questions, and approach job postings as they would other marketing strategies. It’s important to sell the organisation to candidates by conveying a strong, consistent employer brand – making it clear what you do and the part they will play, highlighting the benefits of the role, and including any other information that will attract top talent. It can also help to broaden the job search and applicant pool, for example:

• Considering different, but still applicable, skill sets
• Relaxing or removing non-essential skill requirements from job descriptions and person specifications
• Targeting job-sharers, part-timers and candidates who want to work remotely
• Introducing a scheme for employee referrals and recommendations
• Adopting less-traditional advertising methods and enhancing internet recruiting tactics –social media platforms such as LinkedIn offer effective ways to a greater number of people
• Attending job fairs
• Reaching out to partners and professional networks
• Approaching passive candidates, estimated to be more than 80% of today’s working professionals
• Making the selection process more accessible and inclusive

Actively investing in employee engagement is a key aspect of maximising retention efforts. Businesses that work hard to retain their current workforce will not need to recruit as frequently. Spend time investigating what would engage existing employees further, or what aspects of the workplace or their roles could make their positions even more attractive – evidence shows engagement often goes far beyond straightforward pay increases. Act, and be seen to act, on the feedback received, implementing long-term solutions to aid employee satisfaction.

While money is not the sole answer, revisiting pay and benefits packages can be beneficial. Workplaces which offer appealing cultures, competitive salaries, career development and training prospects, greater work-life balance and flexibility, and attractive benefits packages are regarded as more viable options – both by current employees and the external applicant pool.

Upskilling and succession planning

Often, the talent and skills needed are already within the organisation. Companies who invest in professional development and make conscious efforts to provide staff with career progression opportunities will find that their employees are less likely to look elsewhere. While this is generally regarded as good practice, it’s particularly crucial in tight labour markets when it can be that much harder to fill job openings.

As well as being an effective engagement tool, internal training helps to funnel skills into areas where recruitment is lacking. Strategic workforce planning should include a roadmap for growing the next tier of internal recruits; it begins by identifying key roles that either need to be created, or which are likely to lose job incumbents in the near future. Skills gap analyses can assist with highlighting the training and development needed to prepare employees to assume new responsibilities. Following that, peer coaching, mentoring and training programmes can be devised and implemented to good effect.

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